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, while the government actively updates its regulations to align with international standards. These measures aim to bolster accountability and mitigate the risks associated with offshore banking.

Bermuda is a self-governing British Overseas Territory with a GDP of $6.5 billion as of 2019, showing a growth of 0.5 percent. The economy is primarily driven by international business and tourism, with the re/insurance industry playing a crucial role, covering significant liabilities in the U.S. The island benefits from a robust financial regulatory system and low tax rates, making it an attractive destination for investors.

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, while the Bermuda Monetary Authority effectively regulates financial services. Additionally, the government actively encourages foreign direct investment and has established a regulatory framework to support emerging sectors such as fintech.