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 significant penalties for financial misconduct by public officials and enhances the transparency of government contracts. The Bermuda Criminal Code and the Proceeds of Crime Act further address corrupt practices in investments, such as market manipulation and insider trading. To align with international standards and mitigate the negative perceptions associated with offshore banking, Bermuda continually updates its regulatory measures.

Bermuda is a self-governing British Overseas Territory with a significant offshore financial sector, primarily driven by international business and tourism. The island's economy recorded a GDP of $6.5 billion in 2019, with growth attributed to construction, health services, and real estate, although there were declines in financial services and retail sectors. The economy benefits from a stable government, low taxes, and a skilled workforce, making it an attractive destination for foreign investment.

Bermuda's investment climate is characterized by a stable, democratic government and a low tax regime, making it an attractive destination for investors. The island boasts a skilled workforce and is well-connected to the United States, with its currency pegged to the U.S. dollar. Additionally, Bermuda's legal framework, based on UK common law, ensures high standards of transparency and ethical conduct, fostering a favorable environment for foreign direct investment.