Bermuda's New Anti-Money Laundering Law Takes Effect

by Mandy Robinson, Tax-news.com, London

06 June 2001

Bermuda's new anti-money laundering legislation has come into effect via the Proceeds of Crime Amendment Act 2000 from 1 June, 2001. According to one of Bermuda's top legal firms Appleby, Spurling and Kempe (AS&K), the new Proceeds of Crime Amendment Act together with the Taxes Management Amendment Act 1999, which also took effect from 1 June, will reinforce Bermuda's reputation 'as a financial jurisdiction of the highest integrity ... Bermuda is now in a position to comply with most of the recommendations of the Financial Action Task Force.'

Finance Minister, Eugene Cox claimed: 'By the introduction of these two acts, Bermuda has now included fiscal offences under its proceeds of crime legislation, consistent with Bermuda's own intent and international expectations and anti-money laundering standards.'

With the Act in place, all forms of tax evasion are now a criminal offence in Bermuda. AS&K explain that all individuals and companies who employ 'legitimate means' of tax avoidance or minimisation will be able to continue to do so. The legal firm states: 'The Act refers specifically to a fraudulent breach, a wilful act with intent to defraud the tax authorities, and offences, or potential offences, will have to satisfy Bermuda's definition of an offence, which may not necessarily be the same as in other jurisdictions.'

'Bermuda now has had three years' experience working and doing business with comprehensive anti-money laundering legislation in place. Bermuda's businesses have become comfortable working in this environment, commented Barrie Meade, Compliance Manager at AS&K, 'indeed, Bermuda's international business sector has continued to grow, and Bermuda's fine reputation for integrity has stood us all in good stead.'

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