HAMILTON, Bermuda, CMC – The Bermuda government is urging financial institutions operating here to be aware of the risks in several jurisdictions arising from inadequate systems and controls to combat money laundering and terrorist financing (AML/CTF).
Justice Minister Kim Wilkerson stated that the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations) require the Bermuda-regulated sector and relevant persons to apply enhanced customer due diligence to high-risk countries.
She said also that the legislation requires that a relevant person must apply on a risk sensitive basis enhanced customer due diligence measures to business relationships with customers in instances where a person or a transaction is from or in a country that has been identified as having a higher risk by the Financial Action Task Force (FATF) or the Caribbean Financial Action Task Force (CFTA).
She said the regulation also “requires a relevant person to apply, on a risk-sensitive basis, enhanced customer due diligence in instances where a person or transaction is from or in a country which represents a higher risk of money laundering, corruption, terrorist financing or being subject to international sanctions”.
Wilkerson stated that, as the international standard-setter for anti-money laundering and countering the financing of terrorism, the FATF regularly publishes statements identifying high-risk countries based on assessments of their AML/CFT regimes.
Wilkerson said that the Bermuda government’s strategy is to use financial tools to deter crime and terrorism, detect it when it occurs, and disrupt those responsible, holding them accountable for their actions.
The government stated that the FATF, an inter-governmental body established by the G7 in 1989, with membership comprising 35 member jurisdictions and two regional organisations, is central to Bermuda’s international objectives within this strategy.
“The FATF has not yet reviewed a large number of jurisdictions; thus, the jurisdictions included in the FATF public statement and ‘ongoing compliance’ document are not intended to provide an exhaustive list of jurisdictions that relevant persons should consider to present a higher risk of money laundering or terrorist financing,” the Ministry of Justice said.
But it noted that in the latest FATF document, Haiti has been named, adding that since June 2021, when Haiti made a high-level political commitment to work with the FATF and CFATF to strengthen the effectiveness of its AML/CFT regime, the French-speaking Caribbean Community (CARIOM) country has taken steps towards improving its AML/CFT regime, including implementing risk-based AML/CFT supervision for all financial institutions.
It stated that Haiti is also ensuring the FIU has adequate resources and processes to produce and disseminate operational and strategic analyses to competent authorities for combating ML and TF.
“The FATF recognises the political commitment expressed at a high level and the efforts demonstrated by Haiti to advance its commitment amid the challenging social, economic, and security situation within the country.”
It said that Haiti should continue to work on implementing its action plan to address its strategic deficiencies, including by completing its ML/TF risk assessment process and disseminating the findings; implementing risk-based AML/CFT supervision for DNFBPs deemed to constitute a higher ML/TF risk and ensuring basic and beneficial ownership information is maintained and accessible promptly.
In addition, Haiti is being called upon to demonstrate that the authorities are identifying, investigating, and prosecuting ML cases in a manner consistent with Haiti’s risk profile, as well as showing an increase in identification, tracing, and recovery of proceeds of crimes.
“The FATF notes Haiti’s continued progress across its action plan; however, all deadlines have expired, and work remains. The FATF encourages Haiti to continue to implement its action plan to address the above-mentioned strategic deficiencies”.
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