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BARRISTERS & ACCOUNTANTS AML/ATF BOARD

BARRISTERS & ACCOUNTANTS AML/ATF BOARD. INFORMATION PRESENTATION NOVEMBER 2011. INTRODUCTION. Barristers & Accountants AML/ATF Board Regulatory Framework Requirements for Regulated Persons Registration Onsite Visits Offences and Penalties Consultation Process.

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BARRISTERS & ACCOUNTANTS AML/ATF BOARD

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  1. BARRISTERS & ACCOUNTANTSAML/ATF BOARD INFORMATION PRESENTATION NOVEMBER 2011

  2. INTRODUCTION • Barristers & Accountants AML/ATF Board • Regulatory Framework • Requirements for Regulated Persons • Registration • Onsite Visits • Offences and Penalties • Consultation Process

  3. BARRISTERS & ACCOUNTANTS AML/ATF BOARD • 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

  4. BARRISTERS & ACCOUNTANTS AML/ATF BOARD • 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

  5. Duties of the Supervisory Authority • 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

  6. Key Powers of the Board under Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 • 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

  7. Key Powers of the Board under Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 • Issue directives (S. 30H) • Impose civil penalties (S. 30I) • Fine not exceeding $250,000.00 • Failure to comply with directive issued under S.30H • Failure to comply with AML/ATF Regs • Consideration given to whether firm followed Guidance issued by the Board • Procedure set out in S.30J

  8. Regulatory Framework • 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

  9. Regulatory Framework • 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

  10. Requirements for Relevant Persons • 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

  11. Requirements for Relevant Persons • 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

  12. Requirements for Relevant Persons 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

  13. Registration • 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

  14. Onsite Visits • 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

  15. Offences under Proceeds of Crime Act 1997 • 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

  16. Penalties • 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

  17. Additional Penalties • 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

  18. Consultation Process • 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 Mapp E-mail: supervisor.amlatfboard@gmail.com Tel: 292-5637

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