Published: August 2023
Report of the activities of the Barristers & Accountants AML/ATF Board (the “Board”) for the year ending 31st March 2023 - published in accordance with Section 5(3)(b) of the Proceeds of Crime (Anti-Money Laundering and Anti-terrorist Financing Supervision and Enforcement) Act 2008 (the “Act) for the calendar year ending 31st March 2023.
The Supervisory Regime
Similar to the previous year, the most significant event of the preceding year affecting all sectors and the ability of the Board to carry out its mandated role was not surprisingly, the COVID 19 pandemic. However, the robust remote working regime established in 2020 for the Supervisory Team continued as it did for most other businesses. Based on the review of the Independent Audits, conducted pursuant to section 17A of the Proceeds of Crime (AML/ATF) Regulations 2008, two onsite reviews were conducted in 2022. The use of Desk Top Reviews continues to be a key feature in the satisfying the Board of the effectiveness of the AML/ATF regime for all Regulated Professional Firms.
The work of the Board continues, with the Board meeting remotely bi-monthly in addition to me conducting numerous meetings with our stakeholders and other regulators throughout the last period. The Board has continued to be an active participant in the national exercise of the FATF Mutual Evaluation with the Supervisor Kim Wilson leading the charge. Arising from that, the National Anti-Money Laundering Committee and its Supervisory Forum have set out a detailed coordinated program for Bermuda, to which the Board ascribes. The Supervisory Team has spent a considerable amount of time on this process for which the Board is grateful.
The Board continues to work with both CPA Bermuda and Bermuda Bar Council to further build and consolidate a robust and effective regulatory regime.
Funding
FY23 marked the second successful year of registration fees paid directly to the Board by registrants with no defaults or arears. The Board’s operating budget for 2023/2024 was approved by both the Bar Council and the CPA and we continue to operate in a financially prudent and responsible manner.
Audit and Financial Statements
The Board is almost up to date with its annual audit and to increase transparency, the Board published all of its current and prior year’s financial statements on-line on the Board’s website https://www.amlatfboard.bm.
Registration Improvements
The Board continues to improve the registration process year over year, refining the information collection process. The Board now has three years of data for annual comparisons and trend analysis.
Firms need to understand the importance of submitting accurate and timely information to the Board as this information is analyzed and forms part of the risk rating for their industry and contributes to the NRA. That said, the Board recognizes the efforts and improvements made by the majority in the reporting industries and will continue to drive for higher compliance results, as one would expect.
Board status
For the reporting period, we welcomed new appointee Ms. Miram Rogers as a Bar Association representative and Alain Fournier was reappointed to the Board as a CPA representative in July. Additionally, both the CPA and Bar Association reappointed me as Chairman for another term as Chair.
Conclusion
The Board has had another busy but successful year, which could not all be achieved without the dedication of fellow Board members. As such I thank Renee Oliveira, Alain Fournier, Miriam Rogers, Amanda Scaife, Edward Allanby and Antoine Lightbourne and also the Supervisory Team of Kim Wilson, and Peter Aldrich for their dedicated work for the Board. In addition, I would like to thank George Jones, Jerome Wilson and Shanna Lespere and their respective teams at the Bar Association and CPA.
Finally, the Supervisory Team will continue to assist in registrations. Your first point of call for queries and assistance should be Peter Aldrich.
Regards
Hon. Michael M. Fahy, JP
Chairperson
Notice To Compliance Officers
Published: 18 July 2023
Re: Bermuda National Risk Assessment, 2020
Dear Compliance Officers,
The Financial Action Task Force, “FATF” requires that countries shall conduct a meaningful National AML/ATF Risk Assessment on a regular basis. Such Risk Assessments are useful for the authorities, and the other institutions, (eg FIs and DNFBPs), so that all relevant parties understand and mitigate material money laundering and terrorist financing risks.
According to FATF, “Understanding the money laundering and terrorist financing risks is an essential part of developing and implementing a national anti-money laundering / countering the financing of terrorism (AML/CFT) regime.”
“A risk assessment allows countries to identify, assess and understand its money laundering and terrorist financing risks. Once these risks are properly understood, countries can apply AML/CFT measures that correspond to the level of risk, in other words: the risk-based approach (RBA). The risk-based approach, which is central to the FATF Recommendations, enables countries to prioritize their resources and allocate them efficiently.”
You would be aware that Bermuda conducted a National Risk Assessment with respect to our AML/ATF regime.
To this end, please see attached a copy of the latest Bermuda National Risk Assessment, 2020.
This Report is part of Bermuda’s ongoing AML/ATF regulatory regime developments, with ML/TF risk assessments and subsequent reporting taking place roughly on a 3–4-year cycle.
The Report acts as a reference document, showing how Bermuda addressed its last round of AML/ATF regulatory changes.
The Report shows that Bermuda’s national ML threat rating was raised to High from the 2017 rating of Medium-High. This reflected our deeper analysis and understanding of Bermuda’s potential ML risks using a wider range of data and information available for the 2020 NRA, rather than any major changes in the threat profile. It also reflected the continued enhancement of expertise and experience of Bermudian authorities gained with each cycle of assessments over the years.
Government institutions and the private sector can use the information in the National Risk Assessment as a resource, to inform ongoing good governance and modifications to their AML/ATF Compliance regimes.
Please carefully review the attached, paying particular attention to the chapters relating to both the legal and accounting sectors.
Should you have any questions concerning this, please contact our Supervisor, Kim Wilson on [email protected].
Yours faithfully
Michael M. Fahy
Chairman
Report on 2020 Money Laundering and Terrorist Financing Risk Assessments
Published: 20th July 2023
Through the leadership of NAMLC, Bermuda has conducted national risk assessments in 2013 (ML), 2016 (TF), 2017 (ML) and 2020 (ML and TF) to identify the money laundering and terrorist financing risks that affect Bermuda. The results of the most recent ML and TF Risk Assessments are now available in the Report on 2020 Money Laundering and Terrorist Financing Risk Assessments, and should be used as a reference document by both public and private sector stakeholders.
AMLATF Chairmans Report Year Ending March 31 2022
Published: 27th July 2022
Report of the activities of the Barristers & Accountants AML/ATF Board (the “Board”) for the year ending 31st March 2022 - published in accordance with Section 5(3)(b) of the Proceeds of Crime (Anti-Money Laundering and Anti-terrorist Financing Supervision and Enforcement) Act 2008 (the “Act)
The Supervisory Regime
The most significant event of the preceding year has been the transition to the new registration period for all entities falling within the remit of the Board’s supervisory regime. This saw all professional firms per the AML/ATF Regulations that do not engage in specified activities (i.e. unregulated) pay a registration fee to the Board of $750.00 per annum; and all professional firms per the AML/ATF Regulations that engage in specified activities (i.e. regulated) pay a registration fee to the Board of 1% of gross revenue related to those specified activities per annum as declared to the Board upon registration in the preceding year (minimum $750.00).
As a result of the continuing uncertainty of Covid-19, no onsite reviews were conducted for obvious reasons. However, desktop reviews continued for all Regulated Professional Firms and the work of the Board continued unabated, with the Board meeting remotely on a monthly basis. The Supervisor has reported a high level of compliance across the sector, especially based on the generally positive independent audits reviewed.
This past year (December 2021), the Assistant Supervisor, Martin Russell left us to join a private company. Martin was instrumental to the Board’s activities and he gave great assistance to our Supervisor, Kim Wilson. There are no immediate plans to replace Martin, rather the Board has decided that our Office Manager and Technical Officer, Peter Aldrich can give assistance as required. For that, the Board expresses its gratitude to Peter for his ability to streamline operations and make our processes far easier and quicker than previously.
As reported last year, the Board continues to be an active participant in the national agenda with the Supervisor Kim Wilson continuing to lead the Board’s efforts in this regard. Kim has spent a considerable amount of time on this process and her supervisory responsibilities, for the which the Board is most grateful.
The Board continues to work with both CPA Bermuda (“CPA”) and the Bermuda Bar Association through Bar Council (“Bar Council”) via the Mutual Advisory Committee (“MAC”) to further build and consolidate a robust and effective regulatory regime.
Funding
The new registration process has worked well and the Board contained costs as much as possible to ensure that the fees remained as originally proposed (per the above). Both the CPA and Bar Council approved the Board’s budget and approvals for the 2022-2023 budget were received in March 2022. The Board’s budget is available on our website.
Audit and Financial Statements
The Office of the Auditor General (“OAG”) commenced the annual audit of the Board’s finances for year-end March 31, 2021 in accordance with legislation governing the Board’s activities. Unfortunately, the audit is still on going, largely due to staffing issues within the OAG. As a result, the Board resolved to publish unaudited financials now and we will of course publish the audited financials when received (on-line on the Board’s website).
Registration
The (re)registration process began in September 2021 and allowed the Board to issue Registration Certificates to supervised entities in time for the Bermuda Bar Council and CPA annual registration. Whilst most registrants were able to successfully navigate the process, Board staff made themselves available to assist those that had difficulties. Almost all entities that are required to register with the Board did so in time to receive their practicing certificates.
The Board continues to refine the registration process based on feedback from users, so please share any issues with the Board staff so that we may consider what further changes can be made to the registration and supervisory process. We are trying to be nimble yet effective supervisors and can do so with your input.
Board status
As reported last year, the Bermuda Bar appointed barrister Mark Cave for a three-year term in April 2021. Sadly, Mark passed away in February 2022, which was a shock to us all. Mark was a wonderful complement to the Board and will be remembered fondly.
In June 2021, the Board welcomed chartered accountant Edward Allanby, the CEO and co-founder of Leman Management Limited, who was appointed by the CPA. In July 2021 the Board also welcomed barrister Antoine Lightbourne, the Assistant Tax Commissioner, who was appointed to the Board by Bar Council.
The Board continues to seek suitably qualified individuals to serve on the Board from Bermuda Bar members and CPA Bermuda to fill vacant positions. If you are interested in serving, please contact your respective membership body.
Final Thoughts
Regulators and supervisors globally are under increasing pressure to supervise numerous areas from AML/ATF regimes to trade sanctions, cyber-security, data protection and numerous other areas. Often pressure from regional and global bodies requires there to be further supervision. In the Board’s view, the Bermuda regime in supervising barristers and accountants is robust but there is always pressure to do more. There is a happy medium to be found in this regard and that is why it is very important when we request assistance from you that you do in fact assist, especially during National Risk Assessments (“NRA”), as well as annual working group meetings and data calls in preparation for the analysis required annually to review and update the NRA’s. Whilst we as a Board and supervisory team have our own thoughts on risks to the sector, your input is what is most valuable to help you shape the regulatory landscape. There is little sense in complaining about increased regulation if you do not participate in the processes that lead to the changes. Stay tuned for requests for assistance and information sessions throughout the year.
Conclusion
The work of the Board could not all be achieved without the dedication of fellow Board members. As such, I thank Alain Fournier, Renee Oliveira, Amanda Scaife, Edward Allanby and Antoine Lightbourne for their contributions for financial year ended March 2022 and also the Supervisory Team of Kim Wilson, Martin Russell and Peter Aldrich for their sterling work. In addition, I would like to thank Elizabeth Christopher in her capacity as past Bar Council President, George Jones in his role as current Bar Council President and Jonathan Howes in his capacity as CPA President of and their respective teams for their input throughout the year.
Finally, the Supervisory Team will continue to assist in registrations. Your first point of call for queries should be our website, which has a lot of useful information. If you require assistance please call Peter Aldrich or our Supervisor, Kim Wilson.
Regards
Hon. Michael M. Fahy, JP
Chairman
