Consultation Paper - Basic Bank Accounts (2026-08-07)

Summary

This is a BMA consultation paper proposing amendments to the Banks and Deposit Companies Act 1999 (BDCA) that would require licensed institutions to offer a basic bank account product to eligible individuals, with detailed features, eligibility, closure and reporting rules to be set out in accompanying Regulations. It is a draft proposal only, open for industry comment, not yet in force.

Proposed account features and eligibility

• Who qualifies: Legal Bermuda residents of legal age, retail customers only, one account per person, must meet AML/ATF and KYC requirements, and cannot already hold a standard current/savings account.
• Account features: Bermuda dollar only, non-interest bearing, debit card for domestic use, no minimum balance, transaction cap or balance cap.
• Permitted services: Deposits, cheque processing, cash withdrawals, online banking/balance access, and domestic payments.
• Excluded services: Overdrafts, credit facilities, foreign exchange, and international wire transfers.
• Fees: Basic bank accounts would be exempt from fees for permitted services, maintenance and compliance.
• Closures: Institutions could close accounts immediately for unlawful use, fraud, false information, unmitigable AML/CFT risk, or abusive customer conduct; two months' notice required for eligibility-based, dormancy, administrative-error, or non-CDD administrative reasons.
• Reporting: Institutions would submit quarterly reports to the BMA on applications, approvals, refusals (with reasons), closures (institution- and customer-initiated) and account numbers, using a standardised anonymised template.
• Enforcement: Failure to offer basic bank accounts could attract civil penalties under BDCA section 49A; breach of Regulation-prescribed service requirements could attract penalties up to $10,000 under section 60(2)(c); late quarterly returns would incur a late fee.
• Consequential change: The Proceeds of Crime Act Regulations 2008 would be amended to tailor CDD requirements for basic bank accounts.
• Transition: A proposed six-month transitional period would follow the effective date of the amendments and Regulations to let institutions operationalise the product.

The BMA is inviting industry and stakeholder feedback on these proposals, including on the feasibility of a coordinated verification mechanism, by emailing comments to policy@bma.bm by close of business on 22 September 2026.

Key obligations

• Submit written feedback on the consultation proposals to policy@bma.bm by close of business on 22 September 2026
• (If adopted) Institutions licensed under BDCA section 14(5)(a) would be required to offer basic bank accounts to eligible individuals
• (If adopted) Institutions would be required to provide reasons for refusal, restriction or closure of a basic bank account and information on internal review/complaint procedures, where legally permissible
• (If adopted) Institutions would be required to give a minimum of two months' notice before closing a basic bank account for specified non-AML/ATF or administrative reasons
• (If adopted) Institutions would be required to submit quarterly reports to the BMA on basic bank account applications, approvals, refusals, and closures using a standardised template
• (If adopted) Customers would be obliged to notify the institution of changes in circumstances affecting their eligibility for a basic bank account

Applies to

institutions licensed under section 14(5)(a) of the Banks and Deposit Companies Act 1999 (banks/deposit companies)

Deadlines

• 22 September 2026: Deadline for industry and stakeholders to submit comments on the consultation proposals to policy@bma.bm
• six-month transitional period: Proposed transitional period following the effective date of the legislative amendments and supporting regulations for institutions to establish and operationalise the basic bank account product
• quarterly: Proposed frequency for institutions to submit basic bank account reports to the BMA (if adopted)

Related documents

• This document amends Banks and Deposit Companies Act 1999