FAQs - Registering to be a Non-Licensed AML/ATF Regulated Financial Institution (NLP) (2018-09-11)

Summary

This FAQ document explains changes to the Bermuda Monetary Authority's (BMA) Non-Licensed Person (NLP) registration regime for AML/ATF purposes, following the Proceeds of Crime (Miscellaneous) (No.2) Act 2018, which took effect 7 September 2018. It clarifies which businesses must now register as NLPs, what information must be submitted, and the consequences of missing the registration deadline.

• Expanded scope: As of 7 September 2018, businesses carrying out lending, leasing, and financial guarantees activities are now required to register as NLPs, in addition to the existing securities sector registrants.
• Registration forms: Three NLP registration forms are available: NLP Securities; NLP Lending, leasing, financial guarantee; and exempted private trust companies. An NLP Update Form is used only by already-registered NLPs amending their details.
• Required information: Registration submissions must include the applicant's and business's name, address, nature of business, the names of the appointed compliance officer and reporting officer, Fit and Proper details for those officers and any persons who direct or control the business, and the applicant's AML/ATF policies and procedures including sanctions compliance.
• Enforcement risk: Businesses conducting the newly covered lending, leasing, or financial guarantee activities that fail to submit their NLP registration form before 7 December 2018 are subject to enforcement action.

The document is informational guidance in FAQ format but references binding statutory registration obligations arising from the 2018 Act amendment.

Key obligations

• Businesses carrying out lending, leasing, or financial guarantees activities must register as a Non-Licensed Person (NLP) with the BMA for AML/ATF purposes.
• Registration submissions must include the applicant's and business's name and address, nature of business, the names of the appointed compliance officer and reporting officer under the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, Fit and Proper details for relevant officers and controllers, and the applicant's AML/ATF policies and procedures including sanctions.
• Businesses in the newly covered activities must submit their NLP registration form before 7 December 2018 to avoid enforcement action.
• Already-registered NLPs amending their information must use the NLP Update Form.

Applies to

Non-Licensed Persons (NLPs), businesses carrying out lending activities, businesses carrying out leasing activities, businesses carrying out financial guarantee activities, securities sector businesses, exempted private trust companies

Deadlines

• 7 September 2018: Effective date on which the expanded NLP registration requirement (covering lending, leasing, and financial guarantees) came into force under the Proceeds of Crime (Miscellaneous) (No.2) Act 2018.
• 7 December 2018: Deadline for businesses carrying out lending, leasing, or financial guarantee activities to submit their NLP registration form; failure to do so subjects the business to enforcement action.