Consultation Paper on POCA Amendments - July 2025

Summary

This is a consultation paper issued by Bermuda's National Anti-Money Laundering Committee (NAMLC), under the Bermuda Monetary Authority's AML/ATF policy remit, seeking industry feedback on proposed amendments to the Proceeds of Crime Act (POCA), the Proceeds of Crime (AML/ATF Supervision & Enforcement) Act (POCA SEA), and the POCA Regulations. The amendments are intended to align Bermuda's AML/ATF/CPF legal framework with the revised FATF Standards ahead of Bermuda's 5th Round of Mutual Evaluation in October 2026. No changes are yet in force; this is a request for comments on draft policy direction.

• Proliferation financing risk assessment: Amend POCA section 49(1) to give a legislative basis for a national PF risk assessment, affecting institutional risk assessments and supervisory measures.
• NAMLC membership: Amend POCA section 49(2) to add the Permanent Secretary of the Ministry of National Security as a statutory NAMLC member.
• Civil recovery enforcement authority: Designate the Minister of Justice/Attorney-General's Chambers as Enforcement Authority for civil recovery of unlawfully obtained property under section 36F.
• Publication of cancellation notices: Amend POCA SEA section 20 to require Official Gazette publication of cancellation notices for non-licensed AML/ATF regulated institutions and businesses, matching existing rules for licensed entities.
• Civil penalties scope: Amend POCA SEA section 20(3) to extend civil penalty powers to all breaches of the POCA Regulations, including Regulations 10, 11, 17A and 18A, plus a catch-all for future regulations.
• Fund administration cross-reference fix: Consequential amendment to POCA section 42A to reflect the 2019 move of fund administration licensing to the Fund Administration Provider Business Act 2019.
• Decision Notice timing: Amend POCA SEA section 22 to resolve conflicts with sections 23 and 24 over time periods for issuing a Decision Notice on a proposed civil penalty.
• Financial group designation: Amend POCA section 42B so all statutory authorities can advise the Minister of Justice on designating financial groups, broadening the definition consistent with FATF Standards.
• Supervisory authority powers: Amend POCA SEA section 5 to let supervisory authorities issue rules, codes of conduct or statements of principles on AML/ATF compliance.
• Correspondent relationships: Amend POCA section 13 so correspondent relationship obligations extend beyond bank-to-bank to any regulated financial institution, capturing Virtual Asset Service Providers (VASPs) and digital asset businesses (DABs).
• Non-professional trustee reporting: Amend POCA section 46 to make suspicious activity reporting obligations explicitly apply to non-professional trustees, addressing beneficial ownership transparency requirements.

NAMLC asks industry stakeholders to review the proposed amendments and submit written comments and feedback by email no later than July 30, 2025.

Key obligations

• Stakeholders wishing to comment must submit written feedback on the proposed amendments to info-namlc@gov.bm no later than July 30, 2025.

Applies to

AML/ATF regulated financial institutions, non-licensed AML/ATF regulated financial institutions, regulated non-financial businesses or professions, Virtual Asset Service Providers (VASPs), digital asset businesses (DABs), fund administration providers, non-professional trustees, supervisory and competent authorities

Deadlines

• July 30, 2025: Deadline for industry and public stakeholders to submit written comments and feedback on the proposed POCA/POCA SEA/POCA Regulations amendments to info-namlc@gov.bm.