Bermuda's National Anti-Money Laundering Committee (NAMLC) published a consultation paper proposing amendments to the Trustee Act 1975 to align Bermuda’s trust framework with the revised Financial Action Task Force (FATF) Recommendation 25 on beneficial ownership transparency for legal arrangements. The package is intended to tighten trustees’ obligations to maintain adequate, accurate and up-to-date information that can be accessed by competent authorities, supported by clearer oversight arrangements and sanctions for non-compliance. Key proposals include designating one or more authorities to oversee compliance under the Act, potentially with a registration requirement for relevant persons, and specifying that required records be retained for at least five years after trustee involvement with a trust ceases. The paper also proposes inserting a definition of “beneficial owner” for trusts that includes the settlor, trustee(s), protector (if any), each beneficiary or class of beneficiaries and objects of a power where applicable, plus any other natural person exercising ultimate effective control, alongside a definition of “control” tied to powers over trust property, distributions, trust variation or termination, beneficiary changes and trustee appointments or removals. For non-professional trustees, the amendments would expand record-keeping duties to cover trust assets, liabilities, additions and distributions, purchases and sales, income and expenses, require keeping details of regulated agents and service providers, and add obligations to disclose trustee status to regulated financial institutions and designated non-financial businesses and professions and to cooperate with competent authorities. Sanctions would be strengthened, including a 20,000 civil penalty for each contravention for non-professional trustees and replacing the current daily fine for certain exempted trustees with a fine of up to 20,000. NAMLC requested written comments by 4 December 2025 and noted that the Proceeds of Crime Regulations would be reviewed to ensure consistency in the definition of beneficial owner across legislation.
Bermuda Monetary Authority 2025-11-20
Bermuda's National Anti-Money Laundering Committee consults on Trustee Act amendments to strengthen trust beneficial ownership transparency and enforcement
Bermuda’s National Anti-Money Laundering Committee has issued a consultation on amendments to the Trustee Act 1975 to align Bermuda’s trust framework with revised FATF Recommendation 25 on beneficial ownership transparency. Proposals would tighten trustees’ record-keeping and disclosure obligations, define “beneficial owner” and “control” for trusts, clarify oversight and registration requirements, and strengthen sanctions, including civil penalties of up to 20,000 for non-professional and certain exempted trustees.