The Bermuda Monetary Authority (BMA) issued a stakeholder letter summarising responses to its July 2025 discussion paper on the responsible use of artificial intelligence (AI) in Bermuda’s financial services sector and explaining how the feedback is shaping its ongoing policy work. The BMA confirmed it is not introducing new AI-specific regulatory requirements at this stage and will instead provide guidance on managing AI-related risks within the existing regulatory framework, using an outcomes-based, principles-led and technology-neutral approach. Feedback supported integrating AI risk governance into established requirements covering corporate governance, conduct, enterprise risk management, cyber risk, operational resilience and third-party oversight, with targeted enhancements only where AI introduces materially new or heightened risks. The BMA clarified that proportionality will be applied based on the risk profile and impact of individual AI use cases rather than expected commercial benefits, that mandatory AI governance structures would be unsuitable, and that accountability for AI outcomes remains with boards and senior management. The letter also highlights areas where supervisory clarification may be needed, including board-level AI literacy, delegation and assurance mechanisms, capital markets and market integrity risks associated with AI-enabled behaviours, international alignment for cross-border groups, and third-party AI dependency and concentration risks, including potential mapping of reliance on critical AI-related service providers such as cloud and model and data infrastructure providers. Next steps focus on monitoring how existing governance, risk management, outsourcing, market conduct, cybersecurity and operational resilience frameworks are applied to AI across the sector, alongside continued stakeholder engagement and monitoring of international developments. Any enhancements to the existing regulatory framework would be developed incrementally and proportionately and would follow the BMA’s normal consultation process.
Bermuda Monetary Authority 2026-02-09
Bermuda Monetary Authority summarises feedback on its responsible AI discussion paper and confirms no AI-specific rules for now
The Bermuda Monetary Authority (BMA) issued a stakeholder letter summarizing feedback on its discussion paper regarding AI use in financial services, confirming no new AI-specific regulations. Instead, the BMA will provide guidance on managing AI risks within the current framework, emphasizing an outcomes-based, principles-led approach. The BMA will monitor AI governance and risk management, with any regulatory enhancements developed incrementally and proportionately.