No. 71

ACTING APPOINTMENT

Judicial Department

Magistracy

His Excellency The Governor, after consultation with the Chief Justice, has approved the appointment of Mr. Peter Miller, Assistant Registrar to act as Registrar for the period 3rd May 2010 to 10th May 2010.

Dated this 19th day of January 2010

David Arkley

DEPUTY GOVERNOR

No. 72

ACTING APPOINTMENT

Magistracy

Judicial Department

His Excellency The Governor, after consultation with the Chief Justice, has approved the appointment of Mr. Peter Miller, Assistant Registrar to act as Registrar for the period 8th February 2010 to 19th February 2010.

Dated this 19th day of January 2010

David Arkley

DEPUTY GOVERNOR

NO.73

ACTING APPOINTMENT

BERMUDA POLICE SERVICE

His Excellency the Governor, Sir Richard Gozney, KCMG has appointed Assistant Commissioner of Police, Mr. Paul M. Wright, MSc, FCMI, CBII as Acting Deputy Commissioner of Police during the period 19/02/10 to 28/02/10.

Dated this 8th day of January, 2010

Sir Richard Gozney, KCMG

Governor

NO. 74

REAPPOINTMENT OF PUISNE JUDGE

In exercise of the powers conferred upon him by Section 73(4) of the Constitution, His Excellency the Governor has, after consultation with the Chief Justice, reappointed Carlisle Victor Greaves to the post of Puisne Judge with effect from the 4th day of January 2010 for a further period of five years.

David Arkley

Deputy Governor

NO. 75

STATUTORY GOVERNMENT BOARDS, 2010

The following Boards are appointed from 1st January, 2010 to 31st December, 2010 under the applicable Legislation, unless otherwise indicated.

BOARD OF TRUSTEES OF THE GOLF COURSES - AMENDED

The Golf Courses (Consolidation) Act 1998

Chair: - Mr. Wendall Brown

Deputy Chair: Mr. Bob Wilson

Mr. Delano Bulford

Mr. Neville Tyrrell, JP

Ms. Yolanda Furbert

Mr. Allen Richardson

Mr. Leroy Robinson

Mr. Tommie Squire

Mr. Gregory Swan

Mr. David Woodward

SOUTHAMPTON PARISH COUNCIL - AMENDED

Parish Councils Act 1971

Chair: - Ms. A. Yvette Brown

Mr. Edward Randall Bassett

Mrs. Janet Smith Bradshaw

Mrs. Phyllis Caisey

Mr. Ray DeSilva

Mrs. Lynette Harvey

Mr. Carlton Lambert

Mrs. Carol Richards

Mr. Harrison Simons

Mrs. Geraldine V. Smith, RMN, JP

Mr. John Tucker

no. 76

ORDER

BERMUDA MONETARY AUTHORITY

INSURANCE ACT 1978

CANCELLATION OF REGISTRATION

UNDER SECTION 41(1)(a)

THE BERMUDA MONETARY AUTHORITY in exercise of the powers conferred upon it by virtue of Section 41(1)(a) of the Insurance Act, 1978, (the Act"), hereby cancels, at the request of the insurer(s) listed below, the Class 2 registration granted to the said insurer(s) under the Act:-

BRINKER INSURANCE COMPANY LTD.

BY ORDER OF THE BERMUDA MONETARY AUTHORITY

Leslie L. Robinson

Assistant Director, Insurance

Bermuda Monetary Authority

Dated this 2nd day of November 2009

NO. 77

CORRECTION NOTICE

Please note that the Proceeds of Crime Regulations (Supervision and Enforcement) (Provisions Subject to Civil Penalties) Order 2010 and the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Amendment Regulations 2010 published below replace the instruments incorrectly published on the 13th January 2010 as BR 1/2009 and BR 2/2009.

Attorney-General and Minister of Justice

BR 1 /2010

PROCEEDS OF CRIME REGULATIONS (SUPERVISION AND ENFORCEMENT) ACT 2008

2008 : 49

PROCEEDS OF CRIME REGULATIONS (SUPERVISION AND ENFORCEMENT) (PROVISIONS SUBJECT TO CIVIL PENALTIES) ORDER 2010

The Minister of Justice, in exercise of the power conferred by section 20(4) of the Proceeds of Crime Regulations (Supervision and Enforcement) Act 2008, makes the following Order:

Citation

1 This Order may be cited as the Proceeds of Crime (Supervision and Enforcement) (Provisions Subject to Civil Penalties) Order 2010.

Addition to list of provisions subject to civil penalties in 2008 Act

2 Section 20(3) of the Proceeds of Crime Regulations (Supervision and Enforcement) Act 2008 (BMA may impose civil penalty for failure to comply with specified provisions of Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008) is amended, by replacing the full stop next after the words "regulation 18(1) (training etc)" with a semicolon and by inserting the following on the next line-

"regulation 23(1) (read with regulations 24(1) and (2) and 25, as the case requires) (payer information to accompany wire transfer);

regulation 23(2) (read with regulations 23(3) or 23(4), as the case requires) (wire transfers: verification of payer information);

regulation 23(5) (wire transfers: record keeping);

regulation 24(2) (wire transfers: payer information);

regulation 26(1) (read with regulation 26(2)) (wire transfers: detection of missing or incomplete payer information);

regulation 27(1) (read with regulation 27(2)) (wire transfer with missing or incomplete payer information);

regulation 27(3) (wire transfers: reports of failure to supply information to BMA);

regulation 29 (wire transfers: record keeping);

regulation 30 (wire transfers: intermediary to keep payer information with transfer);

regulation 31(3) (wire transfers: receipt of transfer with missing or incomplete information);

regulation 31(4) (wire transfers: provision of further payer information on request);

regulation 31(5) (wire transfers: record keeping by intermediary).".

Made this 8th day of January, 2010

Attorney-General and Minister of Justice

BR 2 /2010

PROCEEDS OF CRIME ACT 1997

1997 : 34

PROCEEDS OF CRIME (ANTI-MONEY LAUNDERING AND ANTI-TERRORIST FINANCING) AMENDMENT REGULATIONS 2010

The Minister of Justice, in exercise of the power conferred by section 49(3) of the Proceeds of Crime Act 1997 and section 12A of the Anti-Terrorism (Financial and Other Measures) Act 2004, makes the following Regulations:

Citation

1 These Regulations may be cited as the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Amendment Regulations 2010.

Part 4 added

2 The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 are amended by adding the following new Part after Part 3-

"PART 4

WIRE TRANSFERS

Introduction and application

Interpretation of Part 4

21 In this Part -

"batch file transfer" means several individual transfers of funds that are bundled together for transmission;

"complete information on the payer" means information consisting of the payer's name, address and account number, but-

(a) in the case of a natural person, the address may be substituted with the date and place of birth of the payer, his customer identification number or national identity number; and

(b) where the payer does not have an account number, the payer's PSP shall substitute it with a unique identifier that allows the transaction to be traced back to the payer;

"intermediary PSP" means a PSP, neither of the payer nor of the payee, who participates in the execution of transfers of funds;

"money laundering" has the meaning given in section 7(1) of the Proceeds of Crime Act 1997;

"payee" means a person who is the intended final recipient of transferred funds;

"payer" means either-

(a) a person who holds an account and allows a transfer of funds from that account, or

(b) where there is no account, a person who places an order for a transfer of funds;

"payee's PSP" means the PSP of the payee;

"payer's PSP" means the PSP of the payer;

"PSP" (payment service provider) means a person whose business includes the provision of services for the transfer of funds;

"transfer of funds" means any transaction carried out on behalf of a payer through a PSP by electronic means, with a view to making funds available to a payee through a PSP, irrespective of whether the payer and the payee are the same person;

"unique identifier" means a combination of letters, numbers or symbols, determined by the PSP, in accordance with the protocols of the payment and settlement system or messaging system used to effect the transfer of funds.

Application of Part 4

22 (1) This Part applies to transfers of funds, in any currency, that are sent or received by a PSP in Bermuda.

(2) This Part does not apply to transfers of funds carried out using a credit or debit card, if ―

(a) the payee has an agreement with the PSP permitting payment for the provision of goods and services; and

(b) a unique identifier, allowing the transaction to be traced back to the payer, accompanies such transfer of funds.

(3) This Part does not apply to transfers of funds carried out by means of a mobile telephone or any other digital or information technology ("IT") device, when such transfers are pre-paid and do not exceed $150.

(4) This Part does not apply to transfers of funds carried out by means of a mobile telephone or any other digital or IT device, when such transfers are post-paid and meet all of the following conditions―

(a) the payee has an agreement with the PSP permitting payment for the provision of goods and services;

(b) a unique identifier, allowing the transaction to be traced back to the payer, accompanies the transfer of funds; and

(c) the payee's PSP is an AML/ATF regulated financial institution.

(5) This Part does not apply to transfers of funds―

(a) where the payer withdraws cash from his own account;

(b) where there is a debit transfer authorisation between the payer and the payee permitting payments between them through accounts, provided that a unique identifier accompanies the transfer of funds, enabling the payer to be traced back;

(c) where truncated cheques are used;

(d) to public authorities for taxes, fines or other levies within Bermuda; or

(e) where both the payer and the payee are PSPs acting on their own behalf.

Obligations on the Payment Service Provider of the Payer

Information accompanying transfers of funds and record keeping

23 (1) The payer's PSP shall ensure that transfers of funds are accompanied by complete information on the payer.

(2) The payer's PSP shall, before transferring the funds, verify the complete information on the payer on the basis of documents, data or information obtained from a reliable and independent source.

(3) In the case of transfers of funds from an account, the complete information on a payer shall be deemed to have been verified if the payer's PSP has complied with the requirements of customer due diligence under Part 2.

(4) In the case of transfers of funds not made from an account, the payer's PSP shall verify the information on the payer only where the amount exceeds $1000, unless the transaction is carried out in several operations that appear to be linked and together exceed $1000.

(5) The payer's PSP shall for five years keep records of complete information on the payer that accompanies transfers of funds.

Transfers of funds within Bermuda

24 (1) Notwithstanding regulation 23(1), where both the payer's PSP and the payee's PSP are situated in Bermuda, it shall suffice if transfers of funds are accompanied by the account number of the payer or a unique identifier allowing the transaction to be traced back to the payer.

(2) But if the payee's PSP so requests, the payer's PSP shall make available to the payee's PSP complete information on the payer, within three working days of receiving that request.

Batch file transfers

25 Regulation 23(1) does not apply, in the case of a batch file transfer from a single payer where any payee's PSP is situated outside Bermuda, to the individual transfers bundled together in the batch transfer, if-

(a) the batch transfer file contains complete information on the payer; and

(b) the individual transfers of funds carry the account number of the payer or a unique identifier.

Obligations on the Payment Service Provider of the Payee

Detection of missing or incomplete information on the payer

26 (1) The payee's PSP shall detect whether, in the messaging or payment and settlement system used to effect a transfer of funds, the fields relating to the information on the payer have been completed using the characters or inputs admissible within the conventions of that messaging or payment and settlement system.

(2) The payee's PSP shall have effective procedures in place in order to detect whether the following information on the payer is missing―

(a) for transfers of funds where the payer's PSP is situated in Bermuda, the information required under regulation 24;

(b) for transfers of funds where the payer's PSP is situated outside Bermuda, complete information on the payer or, where applicable, the information required under regulation 31; and

(c) for batch file transfers where the payer's PSP is situated outside Bermuda, complete information on the payer in the batch file transfer only, but not in the individual transfers bundled together in the batch transfer.

Transfers with missing or incomplete information on the payer

27 (1) If the payee's PSP becomes aware, when receiving transfers of funds, that information on the payer required under this Part is missing or incomplete, the payee's PSP shall-

(a) reject the transfer; or

(b) ask for complete information on the payer.

(2) But a person is not required to comply with paragraph (1) if to do so would contravene any other provision of an enactment.

(3) If the payer's PSP regularly fails to supply the information on the payer required by this Part, the payee's PSP shall report that fact to the Bermuda Monetary Authority.

(4) If the payer's PSP regularly fails to supply the information on the payer required by this Part, the payee's PSP shall take steps to attempt to ensure that the payer's PSP complies with the requirements as to the supply of information set out in this Part, which steps may include―

(a) issuing warnings to the payer's PSP; and

(b) setting deadlines for the payer's PSP to comply with the requirements as to the supply of information set out in this Part.

(5) If after the payee's PSP has taken steps under paragraph (4) in relation to a payer's PSP and the requirements as to the supply of information set out in this Part are still not regularly complied with by the payer's PSP, the payee's PSP shall either―

(a) reject any future transfers of funds from that PSP; or

(b) decide whether or not to restrict or terminate its business relationship with that provider, either with respect to services for the transfer of funds or with respect to any mutual supply of other services.

Requirement to report where missing or incomplete information makes transaction suspicious

28 The payee's PSP shall consider missing or incomplete information on the payer as a factor in assessing whether the transfer of funds, or any related transaction, is suspicious, and whether it must be reported, in accordance with the requirements of section 46 of the Proceeds of Crime Act 1997 or paragraph 1 of Part 1 of Schedule 1 of the Anti-Terrorism (Financial and Other Measures) Act 2004.

Record keeping

29 The payee's PSP shall keep for five years records of any information received on the payer.

Obligations on intermediary payment service providers

Keeping information on the payer with the transfer

30 Intermediary PSPs shall ensure that all information received on the payer that accompanies a transfer of funds is kept with the transfer.

Duties of intermediary PSP in case of technical limitations

31 (1) This regulation applies where the payer's PSP is situated outside Bermuda and the intermediary PSP is situated within Bermuda.

(2) Unless an intermediary PSP becomes aware, when receiving a transfer of funds, that information on the payer required under this Part is missing or incomplete, the intermediary may, for the purposes of sending transfers of funds to the payer's PSP, use a payment system with technical limitations that prevents information on the payer from accompanying the transfer of funds.

(3) Where an intermediary PSP becomes aware, when receiving a transfer of funds, that information on the payer required under this Part is missing or incomplete, the intermediary PSP shall only use a payment system with technical limitations if the intermediary PSP is able to inform the payee's PSP of this fact, either within a messaging or payment system that provides for communication of this fact or through another procedure, provided that the manner of communication is accepted by, or agreed between, both PSPs.

(4) Where an intermediary PSP uses a payment system with technical limitations, the intermediary PSP shall, upon request from the payee's PSP, make available to the payee's PSP all the information on the payer that it has received, irrespective of whether it is complete or not, within three working days of receiving that request.

(5) In the cases referred to in paragraphs (2), (3) and (4), the intermediary PSP shall keep for five years records of all information received.

Offences and Penalties

Offences

32 (1) A payer's PSP is guilty of an offence if he fails to comply with any requirements of―

(a) regulation 23(1) (read with regulations 24(1), 24(2) and 25 as the case requires);

(b) regulation 23(2) (read with regulations 23(3) or 23(4), as the case requires);

(c) regulation 23(5); or

(d) regulation 24(2).

(2) A payee's PSP is guilty of an offence if he fails to comply with any requirements of―

(a) regulation 26(1) (read with regulation 26(2));

(b) regulation 27(1) (read with regulation 27(2));

(c) regulation 27(3); or

(d) regulation 29.

(3) An intermediary PSP is guilty of an offence if he fails to comply with any requirements of―

(a) regulation 30;

(b) regulation 31(3);

(c) regulation 31(4); or

(d) regulation 31(5).

(4) A person guilty of an offence under paragraph (1), (2), or (3) is liable-

(a) on summary conviction, to a fine of $50,000;

(b) on conviction on indictment to a fine of $750,000 or to imprisonment for a term of two years or to both.

(5) In deciding whether a person has committed an offence under paragraph (1), (2) or (3), the court must consider whether he followed any relevant guidance that was at the time-

(a) issued by the Bermuda Monetary Authority;

(b) approved by the Minister; and

(c) published in a manner approved by the Minister as appropriate in his opinion to bring the guidance to the attention of persons likely to be affected by it.

(6) A person is not guilty of an offence under this regulation if he took all reasonable steps and exercised all due diligence to avoid committing the offence.

(7) Where a person is convicted of an offence under this regulation, he shall not also be liable to a civil fine imposed by or under any statutory provision in relation to the same matter.".

Made this 8th day of January, 2010

Attorney-General and Minister of Justice