Financial Intelligence Agency Act 2007

Summary

This Act establishes Bermuda's Financial Intelligence Agency (FIA) as an independent statutory body responsible for receiving, analysing and disseminating financial intelligence relating to suspected proceeds of criminal conduct, money laundering and terrorist financing. It sets out the FIA's governance structure (Board and Director), financial and reporting requirements, and its powers to compel information and freeze funds, together with rules on confidentiality and permitted disclosure of information it holds.

• Freezing notices: The FIA may serve a written notice on a relevant institution (banks and other institutions designated by the Minister) requiring it not to make funds available to a specified person, for a period of up to 72 hours.
• Information notices: The FIA may serve a written notice on any person requiring them to provide information reasonably needed for an enquiry into suspected proceeds of crime, money laundering or terrorist financing (subject to legal professional privilege).
• Confidentiality: Persons who receive information under or for the purposes of the Act must not disclose it without consent, except as permitted under the disclosure provisions.
• Permitted disclosures: The FIA may share information it holds with bodies such as the Bermuda Police Service, foreign financial intelligence authorities, the Bermuda Monetary Authority, the Bermuda Gaming Commission, the Registrar of Companies and certain Ministers, for specified statutory purposes.
• Financial and reporting duties: The FIA must submit expenditure estimates to the Minister before each financial year, prepare audited accounts, and produce and transmit an annual report and audited accounts to the Minister for laying before the Legislature.

Breach of a freezing notice or an information notice, or unauthorised disclosure of restricted information, are criminal offences carrying fines (and, for unauthorised disclosure, imprisonment). The Act has been amended multiple times since 2007, most significantly removing fee-setting powers and adjusting FIA functions and disclosure recipients.

Key obligations

• Relevant institutions served with a freezing notice must not make funds available to the specified person for up to 72 hours, on pain of a $50,000 fine for non-compliance without reasonable excuse
• Any person served with an information notice must provide the FIA with the required information in the manner the FIA requires, subject to a $10,000 fine and/or six months' imprisonment for non-compliance without reasonable excuse
• Persons who receive restricted information under the Act must not disclose it without the consent of the person to whom it relates, subject to a $50,000 fine and up to two years' imprisonment for contravention
• The FIA must submit expenditure estimates to the Minister not later than three months (or shorter period allowed by the Minister) before the start of each financial year
• The FIA must submit its statement of accounts to the Auditor General within six months after the end of its financial year
• The FIA must, as soon as practicable after each financial year, transmit its annual report and audited accounts to the Minister for laying before the Legislature

Applies to

banking institutions, relevant institutions designated by the Minister, persons served with FIA information or freezing notices, the Financial Intelligence Agency (FIA) itself, Bermuda Police Service, foreign financial intelligence authorities, Bermuda Monetary Authority, Bermuda Gaming Commission

Deadlines

• not later than three months (or such shorter period as the Minister may allow) before the commencement of each financial year: FIA must submit expenditure estimates to the Minister for approval
• within six months after the end of its financial year: FIA must submit its statement of accounts to the Auditor General
• as soon as practicable after the end of each financial year: FIA must issue its annual report and transmit the report and audited accounts to the Minister
• not exceeding 72 hours: Maximum period a relevant institution may be required to freeze specified funds under an FIA notice