Bermuda compliance and regulatory updates - Q4 2022

October & November 2022

• BMA - Financial Sanctions Updates (https://www.bma.bm/international-sanctions)

• • Financial sanctions updates have been published by the BMA for Russia, Mali, Iran (Human Rights) and Yemen

• BMA Regulatory Update for July – September 2022 (published on 9-Nov-2022) (see https://www.bma.bm/publications/regulatory-updates for access to the full report)

• • On 1 July 2022, the Authority published its updated Statement of Principles Investment Business Act 2003 and its updated Investment Business Act 2003 Code of General Business Conduct and Practice (Investment Business - Policy & Guidance - BMA)
  • The Authority issued a response to stakeholder feedback on several consultation papers regarding Investment Business on 22 July 2022 (Investment Business - Discussion/Consultation Papers - BMA)
  • The BMA published a revised version of the Insurance Code of Conduct on 31 August 2022, following public consultation (Insurance - Policy & Guidance - BMA)
  • The revised Operational Cyber Risk Management Code of Conduct: Corporate Service Providers, Trust Companies, Money Service Businesses, Investment Businesses and Fund Administration Providers, Banks and Deposit Companies was published by the BMA on 26 September 2022 (see Corporate Service Provider - Policy & Guidance - BMA)
  • Some Guidance Notes for Investment Business were published in Q3 2022 (see Investment Business - Policy & Guidance - BMA for further details)

• BMA - Guidance Notes on Digital Asset Business (DAB) and Investment Business
  • The Guidance Notes regarding DAB conducting investment business in an ‘ancillary’ manner was updated in October 2022 (see https://www.bma.bm/document-centre/policy-and-guidance-investment-business)

• BMA - Consultation Paper - Digital Asset Business - Appendix I and II

• • The BMA is seeking feedback from stakeholders on the proposed amendments to the Digital Asset Business Act 2018: Code of Practice (CoP) and Digital Asset Business (Client Disclosure) Amendment Rules 2022 (Client Disclosure Rules), which the Authority hopes will formalise its oversight of the conduct of digital asset businesses to secure appropriate protection for their clients and encourage best practices within the sector.

Stakeholders should send comments to conduct@bma.bm no later than the close of business on 19 December 2022 (see https://www.bma.bm/notices)

• BMA - Corporate Governance Policy for Trust, Investment Business and Fund Administrators
  • This policy has been updated (see https://www.bma.bm/document-centre/policy-and-guidance-investment-business)

• BMA - Investment Business - Framework at a Glance
  • Contains a summary of the requirements for persons carrying on investment business in or from Bermuda (Investment Business - Policy & Guidance - BMA)

• Bermuda Economic Substance Update:
  • Bermuda was removed from Annex II the list of non-cooperative jurisdictions for tax purposes by the European Council (sometimes referred to as the EU Tax Grey List) in October 2022

December 2022

• BMA - Financial Sanctions Updates (https://www.bma.bm/international-sanctions)
  • Financial sanctions updates have been published by the BMA for Russia, Mali, Iran (Human Rights), Global Anti-Corruption, Global Human Rights, Myanmar, South Sudan and Haiti.
  • The Haiti (Sanctions) (Overseas Territories) Order 2022 and The Haiti (Sanctions) Regulations 2022 came into force on December 28, 2022.
  • Note: The Haiti (Sanctions) (Overseas Territories) Order 2022 applies to all British Overseas Territories, except for Bermuda and Gibraltar, which implement sanctions under their own legislative arrangements.

• Reports published on the BMA Website in Dec. 2022 for reference (https://www.bma.bm/publications/bma-surveys):
  • Bermuda Insurance Stress Testing - 2021 Report
  • Bermuda’s Coordinated Portfolio Investment Survey - 2021 Report
  • Catastrophe Risk Modelling - 2021 Report

Deadlines for Q4 2022:

• December 31, 2022: Statement of Compliance (BMA)
• December 31, 2022: Economic Substance Declarations (6 months after year end for the relevant entities)

Deadlines for Q1 2023:

• January 31, 2023: Government Fees and Annual Declarations/Returns for Exempted Companies (RoC)
• March 31, 2023: BMA Fees

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