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Regulatory Updates for Bermuda Q2 2023

01 August 2023

Our latest report on Bermuda will bring you up to speed on relevant updates and regulatory developments that took place during the second quarter of the year.

In this report we cover updates to financial sanctions that apply for Bermuda by the Bermuda Monetary Authority (“BMA”); proposed enhancements to supervisory powers within the BMA’s Investment Funds Act; amendments to the Investment Business Act; updates to the Conduct of Business Regulatory Regime for Digital Assets; requirements for the BMA’s Personal Information Protection Act ("PIPA"); information about consultation papers for insurance business; the high-risk jurisdictions and jurisdictions under increased monitoring by the FATF and more.

  • BMA - Financial Sanctions Updates (International Sanctions - BMA)

    • Financial sanctions updates have been published by the BMA for Russia; Counter-Terrorism; Global Human Rights Regime; ISIL Daesh and Al-Qaida; Myanmar; Global Anti-Corruption; Somalia; Democratic People's Republic of Korea; Iran (Human Rights) Regime; Syria Regime; Democratic Republic of the Congo and Syria.
  • BMA – Investment Funds

    • Consultation Paper - Proposed Enhancements to Supervisory Powers within the Investment Funds Act (Notices (bma.bm)
      • The IFA amendments seek to propose additional powers including:
        1. The power to impose additional penalties/late fees;
        2. Broadening of the range of actions that the Authority may, by giving directions, require be taken in respect of a fund; and
        3. Additional powers regarding the communication of information to the Authority by the appointed auditor
  • BMA - Investment Business Amendment Act 2022

    • Persons who did not previously require a license under the Investment Business Act 2003 (as amended) or relied on the Exemptions Order (defined below) must now be licensed or registered with the Authority no later than July 26, 2023. 
    • Consequently, entities that are incorporated or formed in Bermuda that are carrying on investment business outside of Bermuda must now be licensed or registered under the Act.
    • Guidance for Prospective Applicants for Licensing and Registration can be found at Investment Business - Policy & Guidance - BMA.
    • The Investment Business Amendment Act 2022 can be found at: Bermuda Legislation Documents - BMA.
  • BMA – Digital Assets Updates

    • Conduct of Business Regulatory Regime - Digital Asset Business Act 2018 - Final Code of Practice (Notices (bma.bm)
      • The Authority will allow a period of six months from the date of issue (April 4, 2023) for institutions licensed pursuant to the Digital Asset Business Act 2018 to become compliant.
  • BMA – Personal Information Protection Act ("PIPA")

    • Companies that use any form of personal information in Bermuda must use the time between now and January 1, 2025 to:
      • Understand both the privacy rights of individuals and the obligations and requirements of their companies under PIPA
      • Develop a critical path to adopt and implement the compliance measures and policies that will be required
      • Train their personnel in the systems, activities and procedures that must soon be adopted and implemented to ensure their compliant use of personal information
    • The Personal Information Protection Amendment Act 2023 was introduced to reconcile the Personal Information Protection Act 2016, the Public Access to Information Act 2010 and the PATI Regulations 2014.
  • BMA – Insurance Updates & Notices

    • 2023 Consultation Paper - Proposed Enhancements to the Regulatory Regime and Fees for Commercial Insurers Update (Notices (bma.bm). For questions regarding this matter, please contact riskanalytics@bma.bm.
    • Consultation Paper - Proposed Recovery Planning Rules for Bermuda Commercial Insurance Sector (https://www.bma.bm/document-centre/discussions-consultation-papers-insurance)
      • The Authority invites stakeholders to contribute their views on the Proposed Recovery Planning Rules. Stakeholders should send comments to FSRD@bma.bm no later than the close of business on July 21, 2023.
    • All Insurance Intermediaries should ensure that annual return submissions and related attachments are sent in a Microsoft Excel electronic format, in a zipped file to IntermediariesAnnualReturns@bma.bm on or before the filing deadline ( June 30, 2023).
  • Reports and guidance published on the BMA Website
    • This report was published in April 2023 and is based on Bermuda’s third cycle of ML and TF national risk assessments from 2020, which shows a review that was even more wide-ranging than in previous years, providing analysis of risks to Bermuda that help to further strengthen our already robust AML/ATF framework.

Deadlines for 2023: 

  • September 30, 2023: Annual CRS Compliance Certification Form Ministry of Finance
  • December 31, 2023: Economic Substance DeclarationsROC
  • December 31, 2023: Statement of Compliance (6 months after year end) - BMA

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