Bermuda Country Summary

FATF Status

Bermuda is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bermuda was undertaken in 2018. According to that Evaluation, Bermuda was deemed Compliant for 28 and Largely Compliant for 11 of the FATF 40 Recommendations. It was deemed Highly Effective for 1 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

Bermuda has established a robust legal framework to combat corruption, including the Good Governance Act 2012, which imposes penalties on politicians and contractors involved in corrupt practices. This Act enhances transparency in government contracts and mandates internal audits, while the Bermuda Criminal Code and the Proceeds of Crime Act address corrupt investment practices. To align with international standards, Bermuda continues to update its regulatory framework, distancing itself from the negative perceptions associated with offshore banking.

Bermuda is a self-governing British Overseas Territory with a GDP of approximately $6.5 billion, primarily driven by international business and tourism, with the re/insurance industry being a key sector. The economy experienced a growth of 0.5% in 2019, although inflation rose by 3.1%, and the largest increases in GDP were noted in construction, health, and real estate, while declines were seen in financial services and retail sectors.

Bermuda offers a favorable investment climate characterized by a stable, democratic government, low personal and corporate taxes, and a skilled workforce. The island's legal system, based on UK common law, ensures high standards of transparency and ethical conduct, effectively protecting foreign investors' interests. Additionally, the Bermuda Business Development Agency actively promotes foreign direct investment, facilitating connections between potential investors and local industry partners.