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,  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

 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, 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, fine ◦ Indictable Conviction – 10 years imprisonment and/or unlimited fine

 Penalties for breaches of AML/ATF Regulations: Regulation 19 ◦ Summary Conviction –$50, fine ◦ Indictable Conviction –$750, 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 Mapp Tel: