In the Notice, the BMA confirmed that it will not object to BMA-supervised entities conducting cannabis business with a licenced cannabis cultivator, processor or seller, so long as the conduct of the cannabis business is legal at all levels within the country in which it is operated. The Notice stresses that it is the BMA-supervised licenced entity’s responsibility to understand the application of foreign laws and be in compliance therewith.

In the conduct of its business, the BMA-supervised licenced entity must continue to adhere to Bermuda’s legal and regulatory requirements, including in respect of anti-money laundering and anti-terrorism financing, including performing risk assessments of clients, fulfilment of the obligation to file Suspicious Activity Reports to the Financial Intelligence Agency and completion of source of funds enquiries. In the Notice, the BMA confirms its requirement that source of funds enquiries are sufficient to establish that funds derive from activities that do not predate the legalization of the cannabis related activities.

Obtaining adequate insurance remains problematic for those conducting business in the cannabis sector, with many insurers remaining reluctant to insure cannabis related risk, it is therefore an industry that can benefit from captive insurance. Bermuda is the leading domicile for captives globally. As of December 2018, Bermuda had 711 registered active captives with insurance premiums totalling USD40 billion. Insuring risk through a captive enables businesses to obtain customized solutions to their risk needs, while centralizing costs and administration.

If you wish to learn more about Bermuda’s insurance regulation or how Appleby can assist, please engage with your usual Appleby contact or any member of the team below.

Share
Twitter LinkedIn Email Save as PDF
Key contacts

Brad Adderley

Partner: Bermuda

T +1 441 298 3243
E Email Brad

Matthew Carr

Counsel: Bermuda

T +1 441 298-3594
E Email Matthew

Josephine Noddings

Senior Associate: Bermuda

T +1 441 298 3553
E Email Josephine

More News
5 Dec 2019 | News

Vanessa Schrum recognised in Citywealth’s International Powerwomen Top 100 List 2019

Appleby Bermuda Partner Vanessa Schrum, has been recognised in Citywealth’s International Powerwom...

25 Nov 2019 | News

Bermuda Updates Outsourcing Guidance

On 28 June 2019 the Bermuda Monetary Authority (BMA) released Outsourcing Guidance Notes (Guidance N...

21 Nov 2019 | News

WeSpeak

Tammy Richardson-Augustus and other members of Appleby's Global Female Leaders Network attended the ...

19 Nov 2019 | News

Brad Adderley and Caljonah Smith to speak on conference panels in London

Appleby Bermuda’s Brad Adderley and Caljonah Smith are speaking on various conference panels in Lo...

Contributors: Caljonah Smith
8 Nov 2019 | News

Appleby Bermuda Partner Tammy Richardson-Augustus attends the Women, Influence & Power in Law 2019 Executive Leadership Forum

Appleby Bermuda Partner Tammy Richardson-Augustus recently attended the Women, Influence & Power...

6 Nov 2019 | News

Brad Adderley to speak at Kroll Bond Rating Agency’s ESG Breakfast

KBRA (Kroll Bonding Rating Agency) will host an Environmental, Social and Governance (ESG) Breakfast...

5 Nov 2019 | News

Positive Energy: Appleby comments on an active Energy and Natural Resources sector

Appleby has reported another strong year in the energy and natural resources sector and has acted on...

28 Oct 2019 | News

Appleby hires two new lawyers in Corporate and Dispute Resolution

Appleby Bermuda is delighted to welcome Jamie Rego and Bradley Houlston to its Corporate department ...

Contributors: Jamie Rego