What has changed?

An “AML/ATF Regulated Financial Institution” which is not otherwise licensed, registered or authorised by the BMA under any of the regulatory acts is required to register[1] with the BMA as a Non-Licensed Person (NLP).

The Proceeds of Crime (Miscellaneous) (No.2) Act 2018 came into effect on 7 September 2018 (Act).   This Act has expanded the definition of an “AML/ATF Regulated Financial Institution” to include businesses carrying out certain specified “financial activities”. The full list of financial activities can be found in schedule 3 to the Proceeds of Crime Act 1997and now includes lending, financial leasing and financial guarantees.

The Act includes certain exceptions to what constitutes “financial activities” including:

(i) providing any of the specified financial activities intra-group (i.e. by a holding company to a subsidiary company, a subsidiary company to its holding company or by a subsidiary of that holding company to another subsidiary of that holding company); and

(ii) if the financial activities constitute ancillary business to an insurer’s insurance business as permitted under section 19 of the Insurance Act 1978.

Requirement for Registration

An NLP must have registered with the BMA before 7 December 2018 or risk being subject to enforcement action[2].  The registration form can be found here.

What information has to be submitted with the NLP registration form?

(i) the name of the compliance officer (CO) and reporting officer appointed (RO) for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008;

(ii) fit and proper details (which includes a copy of their resume) for the CO, RO and any person who effectively directs or controls the business, including a director, controller or senior executive; and

(iii) a copy of the AML/ATF policies and procedures of the business.

Appleby has an experienced, multi-disciplinary regulatory team which includes expert compliance professionals, as well as a team of lawyers across our Corporate, Private Client & Trusts and Dispute Resolution practice groups.  With expert advisors across a range of disciplines we can help you navigate regulated environments throughout the lifecycle of your business. Please contact a member of the team below if you have any questions.


[1] Section 9 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008

[2] BMA FAQ NLP Registration, 11 Sept 2018

Locations

Bermuda

Services

Corporate

Type

Insight

Share
Twitter LinkedIn Email Save as PDF
More Publications
10 Jun 2024

Bankruptcy & Restructuring – Planning for Failure

The sudden collapse of Lehman Brothers in September 2008 sent shockwaves around the globe. As the la...

4 Jun 2024

Bermuda’s cybersecurity law transformation is well underway

We are almost six month into 2024, and this year has already been transformative for IT and cyber se...

23 May 2024

Regulatory oversight is key for Bermuda’s insurance sector

Bermuda’s thriving insurance and reinsurance sector requires effective regulatory oversight if it ...

9 May 2024

It is all about the data

All successful enterprises have a voracious appetite for data. The advanced abilities of IT systems ...

3 May 2024

Best Practices for Conducting Investigations into Employee Grievances

Grievance procedures are very important, but often overlooked, procedures that all employers should ...

25 Apr 2024

Trusts, and how they came to be

What traces its history through Ancient Rome and the Crusades, can have many de facto owners, none a...

8 Apr 2024

Electronic dissemination of corporate communications by Hong Kong listed issuers from an offshore perspective

In June 2023, The Stock Exchange of Hong Kong Limited published consultation conclusions to its cons...

3 Apr 2024

Bermuda: Lack of New Players Is Supporting Strong Interest in ILS

All signs point to another very strong year for the catastrophe bond and related insurance-linked se...

2 Apr 2024

Choosing the right structure for your business in Bermuda

Anyone seeking to set up a business in Bermuda has a variety of options, depending on the nature of ...

25 Mar 2024

PIPA Compliance is Not Just a Domestic Affair

As organizations in Bermuda prepare for the full application of the Personal Information Protection ...