BMA - Financial Sanctions Updates
Financial sanctions have been published by the BMA for Russia; ISIL (Da’esh) and Al-Qaida; Cyber (corrections); Global Anti-Corruption; Iran (Human Rights); and Libya.
BMA – Updated Guidance Notes for AML/ATF and Annexes
Including the following:
- Guidance Notes for AML/ATF Regulated Financial Institutions
- Annex I - Sector-specific guidance notes for trust business
- Annex III - Sector-specific guidance notes for the securities sector
- Annex VI - Sector-specific guidance notes for corporate service provider business
- Annex VII - Sector-specific guidance notes for money service business
BMA – Regulatory Update (October-December 2022) – published 23 February, 2023
The Bermuda Monetary Authority Amendment (No. 3) Act 2022 was passed in December 2022 and included the following modifications:
- Update of the classification of securities that comprise ‘specified securities’ under the BMA Act
- Fee amendments made in 2022 under the Investment Business Act 2003 (“IBA”) and under the Digital Asset Business Act 2018 (for entities that carry out the digital asset business activity of maintaining custody of client private keys)
- Introduction of an annual fee of US $850 for both Class A Registered Persons and Class B Registered Persons (as such terms are defined under the IBA)
The Insurance Amendment Act 2022 was also passed in December 2022 and included:
- Creating a new class of insurer, Class IILT, which will be subject to the Authority’s regulatory powers
- Providing enhancements relating to the Authority’s regulatory powers for innovative intermediaries
BMA - Anti‐Money Laundering/Anti‐Terrorist Financing (AML/ATF) Data Call (for AFSL, AIFSL & ACSL)
There was an email received from the BMA in March 2023, which provided an amendment to the deadline from 31 March, 2023, to 31 May, 2023, and the web-based portal link for the questionnaires.
BMA – Stakeholder Letter - Consultation Paper – Digital Asset Business – Conduct of Business Regulatory Regime
- A stakeholder response letter has been published on the BMA website (see link above) with details on feedback received from stakeholders and the responses provided by the BMA regarding the Consultation Paper on ‘Conduct of Business Regulatory Regime: Digital Asset Business Act 2018: Code of Practice and Digital Asset Business (Client Disclosure) Amendment Rules 2023’.
- The Authority intends to settle the Code of Practice (“CoP”) and make the rule changes to the Client Disclosure Rules 2018 (“CDR”) based on feedback received
- A suitable transition period will be recommended and communicated to all Digital Asset Businesses (“DABs”) to allow them time to comply with the new provisions
- Stakeholders who would like further clarification or additional information on these matters should contact the Authority directly at conduct@bma.bm
Reports published on the BMA Website
- 2022 year-end Report of Schedule VI and Schedule of Assets (for Insurance Groups, Class 4, Class 3B, Class 3A, Class C, Class D and Class E insurers), click here Notices (bma.bm)
- BSCR Report - Macroprudential Risk Annual Statutory Filings - December 2022 (for the insurance sector – click here Survey Reports by Bermuda Monetary Authority - BMA)
FATF – Annual Report 2021-2022
Highlights of achievements from last year include
- Adopting reports that explore how technology can help detect suspicious activities, analyse financial intelligence, and better understand money laundering and terrorist financing risks, especially through information sharing, while respecting high standards of data protection and privacy
- Delivering updated guidance that explains how the FATF Recommendations apply to virtual assets and virtual asset service providers
- Releasing two new training modules – on proliferation financing and virtual assets
Priorities for 2022-2024
- Increasing capabilities to more effectively recover criminal assets, which will help remove incentives for crimes, such as corruption and tax crimes, and return assets to victims
- Strengthening the FATF Global Network, supporting the FATF system of mutual evaluations, ensuring sustainable funding for the FATF to implement its strategic priorities, and leveraging digital transformation to better tackle money laundering and terrorist financing
FATF – “Grey List” Updates
- New countries subject to increased monitoring: South Africa and Nigeria
- Morocco and Cambodia are no longer subject to increased monitoring by the FATF
- Cayman will remain on the Grey List
- Russia’s FATF membership has been suspended
EU Council - Annex I, the "EU Blacklist"
On 14 February, the EU Council added four jurisdictions (the British Virgin Islands, Costa Rica, Marshall Islands and Russia) to the list of non-cooperative jurisdictions (the EU Blacklist).
- Click here to read Taxation: British Virgin Islands, Costa Rica, Marshall Islands and Russia added to EU list of non-cooperative jurisdictions for tax purposes - Consilium (europa.eu) for further details from the Press Release re: the EU Blacklist and EU Grey list
EU Council - Annex II, the "EU Grey list" (State of Play document)
- Per the Press Release dated 14 February, 2023, (see link above), Barbados, Jamaica, North Macedonia and Uruguayfulfilled their commitments and could therefore be removed from the EU Grey list
- Aruba and Curaçao were added to the Grey List and committed to improving their Global Forum determinations as regards the automatic exchange of information on financial accounts
- Albania was also added to this list and committed to amend or abolish its potentially harmful regime
Remaining Deadlines for Q1 2023
- March 31, 2023: BMA Fees
- March 31, 2023: Government Fees and Annual Declarations/Returns (ROC) – Local Companies
Deadlines for Q2 2023
- April 30, 2023: Statement of Compliance – BMA
- April 30, 2023: Certificate of Compliance – BMA
- April 30, 2023: Filing of Audited Financials – BMA
- April 30, 2023: Management Accounts Filings (Unaudited Financials) – BMA
- April 30, 2023: Filing of Audited Accounts (including D&O Register and UBO Declaration)
Calendars
- April 30, 2023: Filing of Audited Accounts – BSX
- May 31, 2023: AML/ATF Data Call (BMA) – Note: this deadline was changed from March 31, 2023
