Bermuda Compliance and Regulatory Updates – August 2022

BMA - Financial Sanctions Updates

BMA Financial Sanctions Update

Financial sanctions updates have been published by the BMA for Russia (including “The Russia (Sanctions) (Overseas Territories) (Amendment) (No. 2)”), The Democratic People’s Republic of Korea, Venezuela, and Myanmar.

BMA – Consultation Paper Guidance Note: Management of Climate Risk for Commercial Insurers

Notices (bma.bm)

The BMA invites the insurance industry and other interested persons to provide commentary on the proposals set out in this guidance note (see Bermuda Legislations Discussion and Consultation Papers - BMA) by Friday, 30 September 2022.

Please send comments to RiskAnalytics@bma.bm with the subject heading ‘Climate Risk.’

Bermuda Monetary Authority Act 1969 Amendment

Bermuda Monetary Authority’s Mandate Expanded to Include Conduct of Business (bma.bm)

Bermuda’s Governor has provided assent to a bill to amend the Bermuda Monetary Authority Act 1969 (The BMA Act)

This amendment will expand the BMA’s remit to encompass oversight of the conduct of business for financial institutions, including a requirement for greater transparency on the part of financial institutions; the use of effective policies, procedures and internal structures to treat customers fairly; and to handle their customers’ complaints through appropriate mechanisms.

Following a review of the public consultation feedback, the Code of Conduct (Code) has been published for the insurance sector (see Insurance - Policy & Guidance - BMA) and will come into effect immediately; however, the BMA will allow the following transition periods for insurers registered under Section 4 of the Insurance Act 1978 to become compliant with the new provisions of the Code:

a)       A period of six months to become compliant with the new provisions of the Code’s section 8; and

b)      A period of 12 months to become compliant with the new provisions/amendments of all the other sections of the Code

Deadlines for Q3 & Q4

For Bermuda:

September 30, 2022: Annual CRS Compliance Certification Form (Ministry of Finance)

December 31, 2022: Statement of Compliance (BMA)

December 31, 2022: Economic Substance Declarations (6 months after year end for the relevant entities)