Bermuda Compliance and Regulatory Updates - February 2022

BMA Financial Sanctions Updates -

• Sanctions updates have been published by the BMA for Russia, Somalia, Belarus, Venezuela, Syria, Afghanistan, Democratic People’s Republic of Korea, Democratic Republic of the Congo, Global Human Rights, Iraq, ISIL Da-esh and Al-Qaida, Libya, Iran (including nuclear and human rights sanctions), Zimbabwe, South Sudan, Myanmar, Counter Terrorism (International), and Global Anti-Corruption

The Segregated Accounts Companies (SAC) Amendment Act 2021 -

• Changes include adding limited liability companies (LLCs) formed under the Limited Liability Company Act 2016 to the scope of the SAC Act and requiring each SAC company to appoint an SAC Rep in Bermuda who is a 'regulated person,' with limited exceptions. The latest changes to the amendment act came into effect on 31 December 2021

Consultation Paper - Investment Business Code of Practice Code of Conduct (Bermuda Legislations Discussion and Consultation Papers - BMA) -

• Proposals include expansion of the requirements of the previous codes of conduct (Investment Business - Policy & Guidance - BMA) to address the sale and marketing of over-the-counter (OTC) leveraged products, to retail clients in particular and the introduction of specific leverage limits, by underlying asset type
• Updates will also be made to recognise changes in industry practice, regulatory requirements, and communication and delivery channels, since it was last updated in 2010
• This new code will be applicable to all investment providers and will therefore extend to the two new categories of registered persons being added to the framework

Investment Business (Amendment) Act 2022 -

• A draft Investment Business (Amendment) Act 2022 (a “bill”) encapsulating the changes from the consultation paper mentioned above was tabled in the House of Assembly in December 2021 and is expected to come into effect in the first half of 2022
• Upon passage, the bill will be supported by updated regulations and supervisory instruments as well as three new sets of rules, all of which were consulted on in 2021

Bermuda added to EU list of non-cooperative jurisdictions for tax purposes -

• On 24 February 2022, the European Council confirmed that ten countries, including Bermuda, will be included in Annex II of its list of non-cooperative jurisdictions for tax purposes (sometimes referred to as the EU Tax Grey List)
• Being on this list means that Bermuda has made sufficient commitments to reform tax policies but remains subject to close monitoring whilst working on their commitments
• There should be no impact on Bermuda, with respect to doing business there, including no impediments or repercussions for European investors who are investing in Bermuda based structures

Q1 Deadlines:

• 31 March: Government Fees and Annual Declarations/Returns for Local Companies (ROC)
• 31 March 2022 (deadline subject to change): US FATCA Filings (Ministry of Finance)

31 March 2022 (deadline subject to change): CRS Filings (Ministry of Finance)