Article

Updated AML/ATF/CPF & Sanctions Guidance Notes for the Legal and Accounting Sectors

The Barristers and Accountants AML/ATF Board (the "Board") has published updated Guidance Notes for the Prevention and Detection of Money Laundering, Terrorist Financing, Proliferation Financing and Sanctions for the legal sector and the accounting sector.

Lawyers and accountants are key professionals in Bermuda's business and financial sector and are often described internationally as "gatekeepers" to the financial system. The Financial Action Task Force (FATF) has extended the scope of international anti-money laundering standards to these professions, and Bermuda has integrated those standards into its legal and regulatory framework. These Guidance Notes help regulated professional firms understand and carry out their obligations under Bermuda's AML/ATF/CPF legislation, including the Proceeds of Crime Act 1997, the Anti-Terrorism (Financial and Other Measures) Act 2004, the Proliferation Financing (Prohibition) Act 2017, the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, and Bermuda's international sanctions legislation.

What's new in the June 2026 update

The updated Guidance Notes (Version 2) reflect the findings of Bermuda's 2024 National Risk Assessment (NRA) and provide expanded guidance on:

  1. The risk-based approach, including business and client risk assessments informed by the NRA
  2. Client due diligence (CDD), including enhanced due diligence for politically exposed persons, high-net-worth individuals, non-resident clients and legal persons with complex ownership or control structures
  3. Ongoing monitoring of business relationships
  4. Suspicious activity reporting to the Financial Intelligence Agency (FIA) and sanctions reporting obligations
  5. Counter-proliferation financing (CPF) requirements
  6. Compliance with international sanctions regimes, including targeted financial sanctions
  7. Internal systems and controls, outsourcing and reliance, training, record keeping and internal audit

Who must have regard to these Guidance Notes

Legal sector: Professional legal advisers (barristers and attorneys who are members of the Bermuda Bar) and law firms for whom the Board has supervisory authority.

Accounting sector: Professional accountancy firms in Bermuda subject to the Board's supervisory authority.

Under section 30I(6) of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008, in deciding whether a regulated professional firm has failed to comply with a requirement of the Regulations, the designated professional body must consider whether the firm followed relevant guidance issued by that body. Firms are therefore strongly encouraged to review the updated Guidance Notes and ensure their internal policies, procedures and controls are aligned.

Please note that the Guidance Notes are intended to provide general information and support understanding of the subject matter. They are not a substitute for applicable legislation, which takes precedence over any guidance provided. In cases of uncertainty or conflict, the official legislative texts and, where appropriate, professional legal advice should be relied upon.


Source: gov.bm/articles/updated-amlatfcpf-sanctions-guidance-notes-for-the-legal-and-accounting-sectors
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