Civil Penalty Licence Restriction - Sun Life Financial Investments (Bermuda) Ltd (2017-02-27)

Summary

This is a public enforcement notice from the Bermuda Monetary Authority announcing that it fined Sun Life Financial Investments (Bermuda) Ltd $1,500,000 in civil penalties and restricted its Investment Business licence. The action was taken under section 20 of the Proceeds of Crime (Anti-Money Laundering and Terrorist Financing Supervision and Enforcement) Act 2008 and section 20 of the Investment Business Act 2003, following findings of serious and repeated AML/ATF compliance failures.

• Basis for penalty: Failure to adequately comply with the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, specifically: application of Customer Due Diligence measures, ongoing monitoring of business relationships, ceasing transactions where CDD could not be applied, application of Enhanced Due Diligence, and maintenance of appropriate risk sensitive policies and procedures.
• Aggravating factor: Some failings were a repeat of issues identified in a 2013 onsite review that the company had not adequately remediated.
• Regulator view: The Authority characterised the breaches as serious due to their extent and duration, reflecting systemic weaknesses in the company's internal AML/ATF controls.
• Sanction imposed: $1,500,000 in civil penalties and a restriction placed on the company's Investment Business licence.

The notice is primarily informational, reporting a completed enforcement action against a named licensee, but it signals to all licensees the Authority's expectation that AML/ATF policies and procedures be current, effective and fully implemented.

Applies to

investment business licensees, AML/ATF regulated financial institutions