INFORMATION PRESENTATION NOVEMBER 2011

Barristers & Accountants AML/ATF Board

Regulatory Framework

Requirements for Regulated Persons

Registration

Onsite Visits

Offences and Penalties

Consultation Process

Established pursuant to S.25A of the Bermuda Bar Act 1974 and Section 8A of the Institute of Chartered Accountants of Bermuda Act 1973

Chairman and 6 members

Supervisor

Supervisory authority for independent professionals ( as defined in Reg. 2 Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008

Minister may designate professional body under S.4 Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 as supervisory authority once satisfied that Board is able to discharge effectively duties under S.5of that Act

Monitor effectively the persons it is responsible for (independent professionals)

Issue Guidance as to compliance with AML/ATF Regulations

Take necessary measures to ensure compliance with the requirements of the Proceeds of Crime Act, the Anti-Terrorism (Financial and Other Measures ) Act 2004 and AML/ATF Regulations

Report to the FIA any suspicion that a person it is responsible for supervising has engaged in money laundering or terrorist financing

To require information and documents (Section 30D)

No requirement to provide or produce information or answers to questions which firm would be entitled to refuse to provide, produce or answer on grounds of LPP S.30 D(6)

To conduct site visits (Section 30E) – can come in and inspect premises, information where there is reasonable cause to believe premises are being used by a regulated professional firm in connection with their business

Issue directives (S. 30H)

Impose civil penalties (S. 30I)Fine not exceeding $250,000.00Failure to comply with directive issued under

S.30HFailure to comply with AML/ATF RegsConsideration given to whether firm followed

Guidance issued by the Board Procedure set out in S.30J

Proceeds of Crime Act 1997 Proceeds of Crime (Anti-Money Laundering

and Anti-Terrorist Financing) Regulations 2008

Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement ) Act 2008

Anti-Terrorism (Financial and Other Measures) Act 2004

Financial Intelligence Agency Act 2007

Bermuda Bar Act 1974

Institute of Chartered Accountants of Bermuda Act 1973

Guidance Notes on the Prevention and Detection of Money Laundering and the Financing of Terrorism issued by the Barristers & Accountants AML/ATF Board

Relevant person defined in Reg. 2 of the AML/ATF Regulations as a person to whom Reg. 4 of the AML/ATF Regulations applies

Reg. 4 AML/ATF Regulations applies to

independent professionals also defined in Reg. 2 of AML/ATF Regulations

Only required to have systems in place where conducting regulated activities

Regulated activities will include:Buying and selling real property;Managing client monies, securities and other

assets;Management of bank, savings or securities

accounts;Organisation of contributions for the creation,

operation, or management of companies;Creation, operation or management of legal

persons or arrangements, and buying and selling business entities

Compliance with key AML/ATF Regulations:

Reg 6 – Customer Due Diligence Reg 7 – Ongoing Monitoring Reg 8 – Timing of verification Reg 9 – Requirement to cease transactions Reg 11 – Enhanced Due Diligence Reg 15 – Recordkeeping Reg 16 – Systems Reg 17 – Internal Reporting Reg 18 - Training

Registration form

Requirement under S.30B of SEA Act to establish and maintain a register of regulated professional firms

Forms to be distributed in December 2011 with return date to Supervisor prior to February 29, 2012

Confirmation from Board before March 31, 2012 as to status

Preliminary round of visits after July1, 2012

Selection of firms to be chosen based on size, nature of business activities etc.

Notice to be given of scheduled dates by May 31, 2012

Supervision within a group structure by more than one supervisory body – can cooperate with each other BMA/Board

Section 43 – Concealing

Section 44 – Assisting in the retention of

proceeds of crime

Section 45 – Acquisition of proceeds of crime

Section 46 – Failure to disclose knowledge

Section 47 – Tipping Off

Assisting/ Concealing/Acquisition:◦ Summary Conviction – 5 years imprisonment

and/or $50,000.00 fine◦ Indictable Conviction – 20 years imprisonment

and/or unlimited amount in fines

Failure to Disclose knowledge/Tipping Off:◦ Summary Conviction – 3 years imprisonment

and/or $15,000.00 fine◦ Indictable Conviction – 10 years imprisonment

and/or unlimited fine

Penalties for breaches of AML/ATF Regulations:Regulation 19

◦ Summary Conviction –$50,000.00 fine◦ Indictable Conviction –$750,000.00 and or 2 years

imprisonment

Civil Penalty for breach of AML/ATF Regulations or failure to comply with a directive issued under S.30H of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorism Financing Supervision and Enforcement) Act 2008:

Fine not exceeding $250,000.00

Visits to firms held during first quarter 2012

Meetings with Bar Council and Council of ICAB

Additional Training sessions

Contact details for Supervisor:Cheryl-Ann MappE-mail: supervisor.amlatfboard@gmail.comTel: 292-5637