Skip to main content

Financial Services: Bermuda

Volume 464: debated on Wednesday 10 October 2007

To ask the Chancellor of the Exchequer what recent assessment he has made of whether the banking and financial sector of Bermuda is (a) sufficiently transparent and (b) regulated and subject to oversight that meets European and other international norms designed to combat financial and white collar crime; and if he will make a statement. (155823)

In 1999 the United Kingdom and the Caribbean Overseas Territories and Bermuda jointly commissioned an in-depth independent review of financial regulation in those territories. This review, carried out by KPMG and published on 27 October 2000, assessed the extent to which these Overseas Territories comply with international standards and good practice in the way they regulate their financial services sectors.

Bermuda is a member of the Caribbean Financial Action Taskforce and of the Offshore Group of Banking Supervisors, which are both observers bodies to the Financial Action Taskforce. Bermuda is also a member of the Egmont Group, the organisation for sharing information between Financial Intelligence Units. The Bermuda Monetary Authority is a member of the International Organisation of Securities Commissions, which requires members to enter into a memorandum of understanding to mutually share information.

The International Monetary Fund conducted a review of Bermuda’s financial sector regulation and supervision in early 2003 which is publicly available at www.imf.org/external/pubs/ft/scr/2005/cr0598.pdf and www.imf.org/external/pubs/ft/scr/2005/cr0599.pdf. This describes the financial, regulatory, and supervisory framework as well developed in banking, the key areas of securities regulation, and Anti-Money Laundering/Counter Financing of Terrorism. The Caribbean Financial Action Task Force and the International Monetary Fund are currently undertaking a further assessment of regulation and supervision in Bermuda.