Civil Penalties - Acadia Life Limited (2023-08-24)

Summary

This is a press release in which the Bermuda Monetary Authority announces that it has levied civil penalties totalling $900,000 against Acadia Life Limited, a Class C long term insurer, for failing to adequately comply with several requirements of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008. The penalties followed an AML/ATF on-site inspection conducted in June 2022 that identified multiple deficiencies in the Company's AML/ATF programme.

• Governance: Failure to implement appropriate AML/ATF governance under Regulation 16
• Business risk assessment: Failure to undertake a business risk assessment under Regulation 16(1)(ea)
• Customer risk assessment: Failure to conduct appropriate customer risk assessments under Regulations 6(3)(a) and 6(3)(b)
• Customer due diligence: Failure to apply adequate customer due diligence measures under Regulations 5 and 6
• Ongoing monitoring: Failure to institute ongoing monitoring of business relationships under Regulation 7
• Independent audit: Failure to implement an independent audit function under Regulation 17A
• Training: Failure to conduct appropriate AML/ATF training under Regulation 18
• Sanctions policies: Failure to implement internal policies regarding obligations under Bermuda's International Sanctions Regime

The Authority required these deficiencies to be rectified by December 2022, and the notice states that the Company complied within that timeframe and cooperated fully throughout the remediation process. The penalty amount reflects the nature of the breaches together with the size and quality of the Company's book of business, its full cooperation, and its timely remediation. The release serves as a public enforcement notice and a reminder to regulated financial institutions of the importance of maintaining up to date AML/ATF and sanctions policies.

Applies to

Class C insurers, long-term insurance business entities, regulated financial institutions under Bermuda's AML/ATF regime