The Bermuda Monetary Authority said the $600,000 fine of Meritus Trust Company Limited highlights the need to ensure up-to-date compliance with local laws to avoid risks of money laundering or terrorist financing.
The Bermuda Monetary Authority issued a $600,000 fine to a locally licensed trust firm, Meritus Trust Company Limited.
A BMA news release states that they found the firm to be in breach of the Proceeds of Crime (Anti-Money Laundering & Anti-Terrorist Financing) Regulations 2008 (AML/ATF Regulations), the Trusts Act and the CSPB Act in July 2022.
They failed to meet certain standards set under the acts including insufficient risk rating of all its products and services, inappropriate customer risk assessments and no customer due diligence information available for the Authority to view.
Meritus complied with their obligations to remediate the breaches before a July 2023 deadline.
The BMA notes, “This matter highlights the importance of licensees implementing appropriate and up-to-date AML/ATF policies and procedures in order to avoid the risk of financial products or legal structures being used as a vehicle for money laundering or terrorist financing…”
