Bermuda

Global sanctions guide

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  1. Does Bermuda have a sanctions regime in place? 

Yes. As a British Overseas Territory, Bermuda implements the international sanctions obligations of the United Kingdom.

The International Sanctions Act 2003 empowers the Minister responsible for Legal Affairs to make the regulations necessary to give effect in Bermuda to the international sanctions obligations of the UK.

The International Sanctions Act Regulations 2013 (the “2013 Regulations”) were made under the International Sanctions Act 2003. The 2013 Regulations list all of the sanctions-related Orders in force in Bermuda, and are amended on an ongoing basis to ensure it remains up to date. In this regard, Orders will be added or removed from Schedule 1 of the 2013 Regulations from time-to-time as required.

  1. Does Bermuda implement UN sanctions? 

Yes. The Government of Bermuda implements the international sanctions obligations of the UK, which is a member of the UN. As a member of the UN, the UK is obliged to implement the resolutions of the UN Security Council.

  1. Does Bermuda implement an autonomous sanctions regime? 

As a British Overseas Territory, Bermuda must implement all international sanctions that are extended to it through legislative action by the UK Government. The International Sanctions Act 2003 states that the Minister may by regulations make such provisions as appear to him to be necessary or expedient for enabling effect to be given to any international obligation of the UK relating to economic or other sanctions imposed on any country, organisation, person or group of persons. The regulations may include provisions for the apprehension, trial and punishment of persons who contravene the regulations.

The majority of the sanctions in effect in the UK come from the UN Security Council and the EU. International sanctions are implemented in the UK through Orders in Council to give effect to UN Security Council Resolutions. Orders in Council are extended to Bermuda when Bermuda is listed in Schedule 1 to the Order in Council. Certain Orders in Council, which usually give effect not only to UNSCR but also to EU law, are brought into force in Bermuda through regulations made by the Bermuda Parliament pursuant to the International Sanctions Act 2003. This is on the basis that, as EU law is not directly applicable to Bermuda, sanctions related Orders in Council that give effect to EU law must be brought into force through domestic legislation.

  1. What is the nature of the sanctions regime in Bermuda? 

The most frequently applied measures are:

  • arms embargoes
  • bans on exporting equipment that might be used for internal repression
  • export controls
  • asset freezes and financial sanctions on designated individuals and corporate entities
  • travel bans on named individuals
  • bans on imports of raw materials or goods from the sanctions target

In general terms, it is a criminal offence to:

  • deal with funds or economic resources belonging to, owned, held or controlled by a Designated Person, if it is known, or if you have reasonable cause to suspect, that you are dealing with such funds or economic resources
  • make funds available to, or for the benefit of, a Designated Person if it is known, or if you have reasonable cause to suspect, that you are making funds so available
  • make economic funds available to, or for the benefit of, a Designated Person if it is known, or if you have reasonable cause to suspect, that you are making economic resources so available and, in the case of making economic resources available to a Designated Person, that the Designated Person would be likely to exchange the economic resources, or use them in exchange, for funds, goods or services
  1. Does Bermuda maintain a list of sanctioned individuals and entities? 

Yes. The Governor must maintain and publish a list of designated or listed persons who are the target of financial sanctions under any of the Orders listed in Schedule 1 to the 2013 Regulations. This is deemed to be fulfilled by publishing a web address that provides a link to the consolidated list of persons constituting the target of the sanctions.

The Governor must also maintain and publish a list of restricted goods under any of the Orders listed in Schedule 1 to the 2013 Regulations which is deemed to be fulfilled by publishing a web address that provides links to:

  • the Common Military List of the European Union
  • Schedule 2 to the United Kingdom Export Control Order 2008
  • the relevant annexes to the relevant European Union Regulations

which constitute the consolidated list of restricted goods.

The web address https://www.gov.bm/department/office-national-anti-money-laundering-committee provides links to:

  • the United Kingdom Treasury consolidated list of persons constituting the target of financial sanctions and relevant guidelines
  • the consolidated list of restricted goods

in respect of each applicable Order, listed in Schedule 1 to the 2013 Regulations.

  1. Are there any other lists related to sanctions? 

No. There is, however, a list of prohibited business activities in Schedule 10 to the Companies Act 1981. Prohibited business activities include trafficking in armaments as defined in the Armaments (Control) Act 1964.

  1. Does Bermuda have a licensing or authorisation system in place? 

Yes. All sanctions-related licence applications, notifications and authorisations are made to the Governor of Bermuda.

  1. What are the consequences for a breach of sanctions in Bermuda? 

It is a criminal offence to breach a financial sanction without an appropriate licence or authorisation from the Governor of Bermuda. The penalties for breaching sanctions can vary across the various regimes, however, in general terms, any individual found guilty of an offence shall be liable on conviction to imprisonment and/or a fine. Specific penalties can be found in the UK overseas territories orders which are, as stated above, brought into force in Bermuda through regulations or by direct extension to Bermuda.

  1. Who are the relevant regulators in Bermuda and what are their contact details?

The National Anti-Money Laundering Committee (“NAMLC”), while not a regulatory body, is the intra-Governmental Committee established by virtue of section 49 of the Proceeds of Crime Act 1997 (“POCA”) for the purpose of advising the Minister of Justice on the detection and prevention of money laundering in Bermuda.

The NAMLC’s remit includes the making of regulations for this purpose, and the development of a national plan of action to enable the competent authorities in Bermuda to coordinate policies and activities to combat money laundering, and to ensure the participation of Bermuda in the international effort against money laundering and –  monitoring regulated financial institutions to ensure full compliance with Bermuda’s anti-money laundering (“AML”)/anti-terrorist financing (“ATF”) framework as required by section 5 of the Proceeds of Crime Regulations (Supervisions and Enforcement) Act 2008.

Office of the National Anti-Money Laundering Committee
Ministry of Legal Affairs
4th Floor
Global House
43 Church Street
Hamilton, HM12
Bermuda

T: (+1) 441 294 9797
E: info-namlc@gov.bm
https://www.gov.bm/department/office-national-anti-money-laundering-committee

The Financial Intelligence Agency (“FIA”) was established by the Financial Intelligence Agency Act 2007 to act as an independent agency authorised to receive, gather, store, analyse and disseminate information relating to suspected proceeds of crime and potential financing of terrorism received in the form of Suspicious Activity Reports. The FIA may also disseminate such information to the Bermuda Police Service and foreign financial intelligence authorities.

Strata ‘G’ Building
30A Church Street
Hamilton
Bermuda

Te: (+1) 441 292 3422
F: (+1) 441 296 3422
E: info@fia.bm

The Bermuda Monetary Authority (“BMA”) is Bermuda’s financial regulator established under section 2 of the Bermuda Monetary Authority Act 1969. The BMA’s principal objects are enshrined in section 3 of that Act and its objectives and responsibilities include:

  • to supervise, regulate and inspect any financial institution which operates in or from within Bermuda;
  • assisting with the detection and prevention of financial crime;
  • monitoring AML/ATF regulated financial institutions to ensure full compliance with Bermuda’s AML/ATF framework as required by section 5 of the Proceeds of Crime Regulations (Supervisions and Enforcement) Act 2008; and
  • issuing guidance to AML/ATF regulated financial institutions supervised for compliance with the AML/ATF regulations as required by section 5 of the Proceeds of Crime Regulations (Supervisions and Enforcement) Act 2008.

Bermuda Monetary Authority
BMA House
43 Victoria Street
Hamilton
Bermuda

T: (+1) 441 295 5278
F: (+1) 441 292 7471
E: aml@bma.bm
www.bma.bm

  • The Barristers and Accountants AML/ATF Board (http://www.amlatfboard.bm) acts as a supervisory authority with guidance as to how barristers and accountants should carry out their obligations as required under Bermuda’s legislative framework for the prevention and detection of money laundering and terrorist financing.
  • The Charities Act 2014 makes provision for the establishment of a Charities Commission under the auspices of the Registrar General to regulate Charities.  The Registry General has issued Guidance on the Charities (Anti-Money Laundering, Anti-Terrorist Financing and Reporting) Regulations 2014.

 

Contributor law firm

Mark Holligon, Appleby, 33-37 Athol Street, Douglas, IM1 1LB

T: +44 1624 647 691
F: +44 1624 620 992
MHolligon@applebyglobal.com
http://www.applebyglobal.com/