CP - Proposed Legislative Amendments - Enforcement and Supervisory Matters (2018-02)

Summary

This is a joint consultation paper from the National Anti-Money Laundering Committee (NAMLC) and the Bermuda Monetary Authority proposing amendments to the Proceeds of Crime (Anti-Money Laundering & Anti-Terrorist Financing Supervision & Enforcement) Act 2008. It seeks industry feedback on expanding the Authority's enforcement toolkit and raising the civil penalty cap ahead of Bermuda's 2018 FATF assessment. As a draft consultation, it does not itself impose binding requirements but signals forthcoming legislative changes.

• Expanded enforcement powers proposed: Power to refuse or cancel registration of non-licensed AML/ATF regulated institutions on fit and proper grounds, issue directions, restrict licences/registrations, wind up entities, object to controllers, issue public censures, impose prohibition orders on individuals, and seek injunctions.
• Criminalisation of unregistered business: Proposed amendment to section 9 to make it a criminal offence for non-licensed AML/ATF regulated institutions to conduct business without registering, with fines up to $100,000 and/or two years imprisonment on summary conviction, or unlimited fines and/or five years imprisonment on indictment.
• Late fee penalty: Proposed power under section 14 to impose a late penalty fee (a percentage of the annual fee per month or part-month unpaid) on non-licensed AML/ATF regulated institutions.
• Higher civil penalty cap: Proposed increase to the section 20(1A) maximum civil penalty from $500,000 to $10 million per breach, to align with comparable jurisdictions and allow more dissuasive penalties for egregious or systemic failures.
• Extension to individuals: Proposed power to impose civil penalties and other enforcement measures on individuals as well as institutions, and consequential provisions for Warning Notices, Decision Notices, publication, and appeals.

The consultation invited written comments from industry stakeholders by March 26, 2018, via mail or email to the Authority's policy address. No amendments have yet been enacted; the paper describes the Government's intended legislative process, including Cabinet approval and passage through Parliament before the FATF assessment.

Key obligations

• Stakeholders wishing to comment were required to submit written feedback on the proposed amendments no later than March 26, 2018.

Applies to

AML/ATF regulated financial institutions (licensed), non-licensed AML/ATF regulated financial institutions, individuals performing functions at AML/ATF regulated institutions

Deadlines

• March 26, 2018: Deadline for industry stakeholders to submit written comments and feedback on the proposed legislative amendments.