IMF Seeks To Strengthen Bermuda's Regulatory Regime

by Phillip Morton, Investors Offshore.com

07 April 2003

The IMF has made a number of suggestions to the Bermudian authorities following a recent visit to the island to inspect the country's regulatory and supervisory framework, including anti money laundering provisions and enforcement procedures.

According to acting Finance Minister Paula Cox, the IMF presented its provisional findings in a wrap-up session at the end of last month. According to the Royal Gazette, she explained that the IMF was impressed with several aspects of Bermuda's regulatory regime. However Cox also announced that inevitably improvements can be made to the system, and revealed that the Fund has suggested reforms which will improve the jurisdiction's regulatory environment.

The IMF is currently undertaking investigations into the observance of internationally accepted principles and standards in offshore centres with regard to financial services. In particular, it is seeking adequate application of the following areas: Basel Core Principles for Effective Banking Supervision; Insurance Supervisory Principles - International Association of Insurance Supervisors; IOSCO Objectives and Principles of Securities Regulation; and Financial Action Task Force Recommendations for Anti-Money Laundering and Combating Financing of Terrorism.

The report is expected to be finalised by June. Discussions between The Bermudian Monetary Authority, the Ministry of Finance and the IMF are ongoing in the meantime.

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