Money Laundering (ML) risks:

• High-risk areas: Drug trafficking, foreign-sourced fraud, foreign-sourced market manipulation / insider training and foreign-sourced corruption/bribery remain the primary proceeds generated ML threats.
• Sectoral risks: The deposit-taking, securities, trust business, corporate service provider and legal sectors are rated as having high inherent ML risks due to their international exposure and transaction volumes.
• Emerging risks: The Economic Investment Residential Certificate (EIRC) program, introduced in 2023, was assessed for the first time, receiving a medium ML high risk rating due to its potential exposure to high-value investments.

Terrorist Financing (TF) risks:

• Bermuda's TF threat remains low, with no evidence of domestic or cross-border TF activities. The nonprofit sector, while assessed for TF vulnerabilities, showed no significant risks.

Sectoral insights:

• Digital Asset Businesses (DABs): Rated medium-high for ML risk due to the global nature of digital assets and potential misuse for illicit activities.
• Real Estate: Medium ML risk, influenced by foreign investments, including through the EIRC program.
• Nonprofit Organisations (NPOs): Low TF risk, with robust oversight and no evidence of misuse.

Global cooperation:

• Bermuda continues to collaborate with international bodies to address ML/TF risks, aligning with Financial Action Task Force (FATF) standards.

The findings will guide updates to Bermuda's AML/ATF policies, ensuring the jurisdiction remains resilient against evolving financial crimes.

For more information, the Report can be found here and the press release here