NO. 915

In the Supreme Court of Bermuda

THE JURORS ACT 1971

SECTION 2

JURY SESSIONS - 2009

NOTICE is hereby given that subject to any order of the Supreme Court, the Jury Sessions for the year 2009 shall be of two months duration in each session commencing from:

Tuesday January/February

6th January 2009 session

Tuesday March/April

3rd March 2009 session

Monday May/June

4th May 2009 session

Thursday July/August

2nd July 2009 session

Wednesday September/October

2nd September 2009 session

Tuesday November/December

3rd November 2009 session

Made by the Honourable Chief Justice

Dated the 2nd day of November 2008

Chief Justice

NO. 916

In the Supreme Court of Bermuda

SUPREME COURT ACT 1905

SECTION 37

CRIMINAL JURISDICTION 2009

SESSION DAYS

It is directed that the Session Day for each month during the year 2009 shall be the following:

Monday 5th January 2009

Monday 2nd February 2009

Monday 2nd March 2009

Wednesday 1st April 2009

Friday 1st May 2009

Monday 1st June 2009

Wednesday 1st July 2009

Monday 3rd August 2009

Tuesday 1st September 2009

Thursday 1st October 2009

Monday 2nd November 2009

Tuesday 1st December 2009

Made by the Honourable Chief Justice

Dated 2nd day of November 2008

Chief Justice

NO. 922

THE BERMUDIAN STATUS BY BIRTH

OR GRANT REGISTER ACT 1992

The Bermudian Status by Birth or Grant Register is a list of Bermudians. The register was developed to meet a public demand for a quicker, simpler and cheaper method of satisfying those people who find it necessary to obtain documentation that they are Bermudian.

The Register is a list of names of everyone who was registered to vote in any of the four years 1989 to 1992 except for those without Bermudian status who were registered as electors on 1 May 1976 in accordance with section 55 of the Constitution of Bermuda. The Register also contains corrections resulting from objections made to entries on all previous editions of the Register. In addition, it contains names of people who have been added since 1992. Upon submitting evidence to this Department, these people have proven that they are eligible to be registered as a Bermudian.

The Department is aware that some of the people listed on the Register are now deceased. Those people who the Department knows have died are identified as deceased on the Register.

The Register will be available for inspection at all post offices and the Department of Immigration from the 1 December, 2008 until 1 February 2009, inclusive.

The addresses shown on the Register are the last known addresses of each person, used only to aid in distinguishing between people with the same or similar names.

The public are invited to scrutinise the list of names and to advise the Chief Immigration Officer by way of an Objection Form of:

(a) any errors in their own entry; or

(b) in that of others; or

(c) of any names that should not be on the list.

An error with, or change of, an address does not count as an error because addresses appear only for identification purposes. Objection forms are available from the Department of Immigration.

Subject to the provisions of the Bermudian Status by birth or Grant Register Act 1992, any child who was born in Bermuda on or after 1 July 1956 to a parent who was Bermudian at the time of the child's birth, and that Bermudian parent's name appears on the Register, can have his or her name added onto the Register by completing a simple, explanatory form [Form 5(2)].

Applications, accompanied by the appropriate documents, or objections accompanied by the statutory fee of $5.00, should be addressed to:

The Chief Immigration Officer

The Department of Immigration

P.O. Box HM 1364 Hamilton HM FX

or delivered to:

The Department of Immigration

Government Administration Building

30 Parliament Street Hamilton HM 12

NO. 927

PARLIAMENTARY ELECTION ACT 1978

Sections 36(3) and 73(2) & 74)

CONSTITUENCY 31 (SOUTHAMPTON WEST CENTRAL) BYE-ELECTION

TO BE HELD ON 4 DECEMBER 2008

For the information of employers, employees and the public generally, section 36(3) and section 73(2) & 74) of the Parliamentary Election Act 1978, which relate to the entitlement of parliamentary electors registered in Constituency 31 (Southampton West Central ) to time off from work on polling day to vote, are reproduced below.

Entitlement to time off from work to vote

Section 36 (3) Every parliamentary elector whose name appears in the parliamentary register for a constituency in respect of which a contested parliamentary election is held shall, if he is in employment, be entitled to receive from his employer without penalty sufficient time off work on the polling day to enable him to travel to the election room and there record his vote.

73 (2) Any employer who on being requested by an employee pursuant to section 36(3) to allow him sufficient time off work to enable him to travel to an election room and there record his vote fails to allow him such time or who penalizes an employee whom he has allowed time to so travel and vote commits an offence.

74 Where a person commits an offence under this Act for which no Penalty is provided:

Punishment on summary conviction: imprisonment for 9 months or a fine of $500 or both such imprisonment and fine.

Dated this 26th day of November, 2008

Kenneth R. Scott, JP

Parliamentary Registrar

No. 934

ACTING APPOINTMENT

MINISTRY OF LABOUR, HOME AFFAIRS

& HOUSING

PERMANENT SECRETARY

Hon. L. Milton Scott, JP, Director of Labour and Training, has been appointed to act as Permanent Secretary from 21 November 2008 to 29 November 2008 inclusive.

Kenneth S. Dill

Head of the Civil Service

NO. 935

Acquisition of Land

Notice is hereby given that JEFFREY ALLEN LAFFERMAN and CHRISTINE JENNIFER LAFFERMAN both American citizens are applying to the Minister of Labour, Home Affairs and Housing for sanction to acquire in joint tenancy a 1/10th fractions or shares of Unit 3B The Residence Club, Tucker's Town situate in Hamilton Parish.

N.B. Any person who knows why a sanction to acquire property in Bermuda should not be granted to the applicants should send a written statement to the Minister of Labour Home Affairs and Housing, P.O. Box 1364, Hamilton HM FX, no later than the 12th December, 2008.

NO. 936

Acquisition of Land

Notice is hereby given that JOCELYN ANN BARNES a Canadian citizen is applying to the Minister of Labour, Home Affairs and Housing for sanction to acquire Lot 4, Smith's Island situate in St. George's Parish in joint tenancy with her Bermudian husband.

N.B. Any person who knows why a sanction to acquire property in Bermuda should not be granted to the applicant should send a written statement to the Minister of Labour and Immigration, P.O. Box 1364, Hamilton HM FX, no later than the 12th December, 2008.

NO. 937

WHEREAS, BECAUSE GROUP INTERNATIONAL LTD. was included on a list of companies struck off the Register of Companies effective 7 September 2007 pursuant to section 261 of the Companies Act 1981.

I, The Registrar of Companies, HEREBY GIVE NOTICE to all concerned that BECAUSE GROUP INTERNATIONAL LTD. has been restored to the Register and as such deemed to have continued in existence as if its name had never been struck off pursuant to setion 261(6) of the Companies Act 1981.

Stephen Lowe

Registrar of Companies

25 November 2008

NO. 938

Notice is hereby given that application has been made to the Minister of Labour, Home Affairs and Housing, by the following persons for the grant of Bermudian status under the provisions of section 19A of the Bermuda Immigration and Protection Act, 1956, (viz: has been married to the same Bermudian for ten [10] continuous years, during that marriage has been ordinarily resident in Bermuda for seven [7] years, the last two [2] years of which must be continuous to the date of application; has been living together with his/her Bermudian spouse as husband and wife continuously for the two [2] years immediately preceding his/her application; and is of good character and conduct.)

DAVIDSON, Cecile Sylvie, 5 Manse Road, Paget Parish

SANTOS, Jose Manuel Machado Dos, 12 Hesitation Lane, Devonshire Parish

SIMMONS, Dina Ann, 12 Plaice's Point Road, Pembroke Parish

N.B. Any person who knows if any of the above provisions have not been fulfilled, or why Bermudian status should not be granted to the applicants, should send a written statement to the Chief Immigration Officer, Department of Immigration, P.O. Box HM 1364, Hamilton HMFX no later than 12 December, 2008.

NO. 939

ACTING APPOINTMENT

Ministry of Education

PERMANENT SECRETARY

Mrs. Judith Hall-Bean, Assistant Cabinet Secretary of the Civil Service has been appointed to act as Permanent Secretary for the Ministry of Education for the period November 27, 2008 to November 28, 2008.

Kenneth S. Dill

Head of the Civil Service

No. 940

ACTING APPOINTMENT

COMMISSIONER OF EDUCATION

Ministry of Education

Mrs. Wendy McDonell, Director of Educational Standards and Accountability has been appointed to act as Commissioner of Education for the Department of Education for the period November 25, 2008 to November 30, 2008.

Kenneth S. Dill

Head of the Civil Service

NO. 941

THE COMPANIES ACT 1981

APPOINTED STOCK EXCHANGES

Section 2(9) of the Companies Act 1981

The Minister of Finance in the exercise of powers conferred upon her by section 2(9) of the Companies Act 1981 hereby appoints the following as an Appointed Stock Exchange:-

Specialist Fund Market

The Hon. Paula A. Cox, JP, MP

Minister of Finance

Dated this 24th day of November 2008

NO. 942

Notice is hereby given that application has been made to the Minister of Labour, HomeAffairs and Housing, by the following persons for the grant of a Permanent Resident's Certificate, under the provisions of section 31B of the Bermuda Immigration and Protection Act, 1956, (viz: were ordinarily resident in Bermuda for the period of ten (10) years immediately preceding application; are of good conduct and character; are at least eighteen (18) years of age; are either: a) the brother or sister of a person who possesses Bermudian status or a permanent resident's certificate granted under section 31A; b) the natural parent of a person who possesses Bermudian status or a permanent resident's certificate granted under section 31A; c) the son or daughter of a person who was granted a permanent resident's certificate granted under section 31A and is above the upper limit of compulsory school age or d) the spouse of a person who was granted a permanent resident's certificate granted under section 31A).

AGUIAR, Maria Francisca Salema Inacio, 23 Woodlands Road, Pembroke HM 09

BURGESS, Dianne-Mae, 8 Lusher Lane, Warwick WK 03

CAINES, Joseph Valentine, 15 Burnt House Hill, Warwick WK 04

CORDEIRO, Gracinao Michael, 10 Curving Avenue, Pembroke HM 19

FERREIRA, Armindo Manuel Morias, 15 Middle Road, Southampton SB 02

SALASSI, Zahra, 4 Fairhaven Lane, Sandys SB 01

SILVA, Ludgarda Maria Moniz De Aguiar, 37 Parsons Road, Pembroke HM 17

SILVA, Nuno Moniz Da, 37 Parsons Road, Pembroke HM 17

SOUSA, Ana Catarina Fernandes De, 2 WB's Way, Hamilton Parish CR 03

SOUSA, Lucia Da Conceicao Da Ponte Fernandes, 2 WB's Way, Hamilton Parish CR 03

VIEIRA, Maria Do Carmo Araujo Silva, 11 Tribe Road #1, Pembroke HM 19

WALSH, Stephen John, 33 Shore Hills Lane, St. George GE 01

N.B. Any person who knows if any of the above provisions have not been fulfilled, or why a Permanent Resident's Certificate should not be granted to the applicants, should send a written statement to the Chief Immigration Officer, Department of Immigration, P.O. Box HM1364, Hamilton HM FX no later than the 12th December, 2008.

NO. 943

Notice is hereby given that application has been made to the Minister of Labour, Home Affairs and Housing, by the following person for the grant of Bermudian status, under the provisions of section 20D of the Bermuda Immigration and Protection Act, 1956, (viz: were ordinarily resident in Bermuda on or before 31 July 1989; were ordinarily resident in Bermuda for the period of twenty (20) years immediately preceding application; are of good character and conduct and has other siblings all of whom possess Bermudian status).

PITCHER, Azeem Ryan, 26 Chaingate Hill, Devonshire DV 06

N.B. Any person who knows if any of the above provisions have not been fulfilled, or why Bermudian Status should not be granted to the applicant, should send a written statement to the Chief Immigration Officer, Department of Immigration, P.O. Box HM 1364,Hamilton HM FX no later than the 12th December, 2008.

NO. 944

Notice is hereby given that application has been made to the Minister of Labour, Home Affairs and Housing, by the following persons for the grant of Bermudian status, under the provisions of section 20F of the Bermuda Immigration and Protection Act, 1956, (viz: were ordinarily resident in Bermuda on or before 31 July 1989; were ordinarily resident in Bermuda for the period of twenty (20) years immediately preceding application; were registered in the parliamentary register on 1 May 1976; are registered on the present - as of 31 October 2002 - register and are of good character and conduct).

HINDS, Malcolm Theodore, 10 Long Bay Lane, Sandys MA 03

MAIR, Joy Doreen, 5 Agar's Hill, Pembroke HM 05

PRYCE, Leslie Anthony, 1 York Street, St. George GE 01

WAGNER, Ivy Edwyna Metalil, 8 Henry's Hill Road, Hamilton Parish CR 04

N.B. Any person who knows if any of the above provisions have not been fulfilled, or why Bermudian Status should not be granted to the applicants, should send a written statement to the Chief Immigration Officer, Department of Immigration, P.O. Box HM 1364, Hamilton HM FX no later than the 12th December, 2008.

NO. 945

Notice is hereby given that application has been made to the Minister of Labour, Home Affairs and Housing, by the following persons for the grant of a Permanent Resident's Certificate, under the provisions of section 31A of the Bermuda Immigration and Protection Act, 1956, (viz: were ordinarily resident in Bermuda on or before 31 July 1989; were ordinarily resident in Bermuda for the period of twenty (20) years immediately preceding application; are at least forty (40) years of age and are of good character and conduct).

ESPOSITO, Giuseppe, 15 Mariners Lane, Pembroke HM 02

HARRISON, Lee John, 4 Cheriton Lane, Pembroke HM 01

HERNANDEZ, Cecilia Bartolome, 60 St. Anne's Road, Southampton SN 02

NAGEL, Anthony Victor, 14 Bellevue Drive, Paget PG 04

NAGEL, Karen Marie, 14 Bellevue Drive, Paget PG 04

NAGEL, Karen Marie, 14 Bellevue Drive, Paget PG 04

RAMSAY, Pretto, 2 Slip Point Lane, St. George GE 02

SANTOS, Artur Araujo, 56 Roberts Avenue, Devonshire HM 15

SUMIRAT, Koeswana, c/o Grotto Bay Hotel, 11 Blue Hole Hill, Hamilton Parish CR 04

TOAVS, Wesley Veronne, 10 Gibbons Quay, Sandys SB 01

WARD, David Ricardo, 10 Headquarters Hill, Devonshire DV 02

WEEKES, Alleyne Sylvester, 5 Swanville Drive, Warwick WK 07

N.B. Any person who knows if any of the above provisions have not been fulfilled, or why a Permanent Resident's Certificate should not be granted to the applicants, should send a written statement to the Chief Immigration Officer, Department of Immigration, P.O. Box HM1364, Hamilton HM FX no later than the 12th December, 2008.

NO. 946

LISTING OF PLANNING

APPLICATIONS REGISTERED

From Date: 11/24/08 To Date: 11/25/08

Summary of Application Details

• The applications shown below are available for review during normal working hours at the Department of Planning, 3rd Floor, Government Administration Building, 30 Parliament Street, Hamilton.

• Any person wishing to object must do so within 14 days of the date of this publication.

• Letters of objection should state any interest which the objector(s) may have in property nearby, supply an address at which notice may be served on the objector(s) and provide a concise statement of the grounds of objection.

• For further information on the objection procedure see the Development and Planning (Applications Procedure) Rules 1997.

Application Application #

Pembroke

Mills Creek Properties Ltd. S0072/08

9 Mill Creek Road, Pembroke

6 Mill Reach Lane, Pembroke

8 Mill Reach Lane, Pembroke

Boundary Adjustment. (Final Plan)

Smiths

Paragon Trust Ltd. Trustees of the Hanton Trust P0749/08

3 Pokiok Close, Smiths

New Windows in Wall of Basement

Play/Hobby Room. (Final)

NO. 947

ORDER

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 respective Class 3 registration granted to the said insurer(s) under the Act:-

P.E.G. REINSURANCE COMPANY, LTD.

BY ORDER OF

THE BERMUDA MONETARY AUTHORITY

Harry Whitcher

Deputy Director, Insurance

Bermuda Monetary Authority

Dated this 25th day of November 2008

BR 77/2008

PROCEEDS OF CRIME ACT 1997

1997 : 34

PROCEEDS OF CRIME

(ANTI-MONEY LAUNDERING AND

ANTI-TERRORIST FINANCING)

REGULATIONS 2008

ARRANGEMENT OF REGULATIONS

PART 1

PRELIMINARY

1 Citation and commencement

2 Interpretation

3 Meaning of beneficial owner

4 Application of Regulations

PART 2

CUSTOMER DUE DILIGENCE

5 Meaning of customer due diligence measures

6 Application of customer due diligence measures

7 Ongoing monitoring

8 Timing of verification

9 Requirement to cease transactions, etc.

10 Simplified due diligence

11 Enhanced customer due diligence

12 Branches and subsidiaries

13 Shell banks, anonymous accounts, etc.

14 Reliance on third parties

PART 3

RECORD-KEEPING, SYSTEMS, TRAINING, ETC.

15 Record-keeping

16 Systems

17 Internal reporting procedures

18 Training, etc.

19 Offences

20 BR9/1008 revoked

SCHEDULE

In exercise of the powers conferred upon the Minister responsible for Justice by section 49(3) of the Proceeds of Crime Act 1997 and section 12A of the Anti-Terrorism (Financial and Other Measures) Act 2004, the following Regulations are made:

PART 1

PRELIMINARY

Citation and commencement

1 These Regulations may be cited as the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 and shall come into operation on such day as the Minister may appoint by notice published in the Gazette and the Minister may appoint different days for different provisions.

Interpretation

2 (1) In these Regulations-

"appointed stock exchange" means a stock exchange appointed by the Minister of Finance under section 2 (9) of the Companies Act 1981;

"banking institution" means a person carrying on deposit-taking business within the meaning of section 4 of the Banks and Deposit Companies Act 1999;

"beneficial owner" has the meaning given in regulation 3;

"business relationship" means a business, professional or commercial relationship between a relevant person and a customer, which is expected by the relevant person when contact is first made between them to have an element of duration;

"customer due diligence measures" has the meaning given by regulation 5;

"financial institution" has the meaning given in paragraph (2);

"firm" means any entity, whether or not a legal person, that is not an individual and includes a body corporate and a partnership or other unincorporated association;

"independent professional" means a professional legal adviser or accountant being a firm or sole practitioner in independent practice who by way of business provides legal or accountancy  services to other persons when participating in financial or real property transactions concerning-

(a) buying and selling real property;

(b) managing of client monies, securities and other assets;

(c) management of bank, savings or securities accounts;

(d) organisation of contributions for the creation, operation or management of companies;

(e) creation, operation or management of legal persons or arrangements, and buying and selling business entities

and, for this purpose, a person participates in a transaction by assisting in the planning or execution of the transaction or otherwise acting for or on behalf of a client in the transaction;

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

"occasional transaction" means a transaction (carried out other than as part of a business relationship) amounting to $15,000 or more, whether the transaction is carried out in a single operation or several operations which appear to be linked;

"professional accountant" has the meaning given in section 42A of the Proceeds of Crime Act 1997;

"professional legal adviser" has the meaning given in section 42A of the Proceeds of Crime Act 1997;

"relevant person" means the person to whom in accordance with regulation 4, these Regulations apply 4;

"supervisory authority" means the Bermuda Monetary Authority in relation to relevant persons that are financial institutions; or a professional body designated by the Minister under any enactment in relation to relevant persons regulated by it.

"terrorist financing" means an offence under section 5, 6, 7 or 8 of the Anti-Terrorism (Financial and Other Measures) Act 2004;

(2) "financial institution" means a person who-

(a) carries on deposit-taking business within the meaning of section 4 of the Banks and Deposit Companies Act 1999;

(b) carries on investment business within the meaning of section 3 of the Investment Business Act 2003;

(c) is an insurer (and not a reinsurer) registered under section 4 of the Insurance Act 1978 who carries on long term business falling within paragraph (a) or (c) of the definition of "long-term business" in section 1(1) of the Insurance Act 1978;

(d) is an insurance manager or broker registered under section 10 of the Insurance Act 1978 in so far as he acts as a manager or broker in connection with long term business (other than reinsurance business) falling within paragraph (a) or (c) of the definition of "long-term business" in section 1(1) of the Insurance Act 1978;  

(e) carries on the business of a fund administrator within the meaning of section 2(2) of the Investment Funds Act 2006;

(f) carries on money service business within the meaning of section 20AA of the Bermuda Monetary Authority Act 1969;

(g) carries on trust business within the meaning of section 9(3) of the Trusts (Regulation of Trust Business) Act 2001 and is not otherwise exempted by or under paragraph 3 of the Trusts (Regulation of Trust Business) Exemption Order 2003; or

(h) is the operator of an investment fund within the meaning of section 2 of the Investment Funds Act 2006;

Meaning of beneficial owner

3 (1) In the case of a body corporate, "beneficial owner" means any individual who-

(a) as respects any body other than a company whose securities are listed on an appointed stock exchange, ultimately owns or controls (whether through direct or indirect ownership or control, including through bearer share holdings) more than 25% of the shares or voting rights in the body; or

(b) as respects any body corporate, otherwise exercises control over the management of the body.

(2) In the case of a partnership, "beneficial owner" means any individual who-

(a) ultimately is entitled to or controls (whether the entitlement or control is direct or indirect) more than a 25% share of the capital or profits of the partnership or more than 25% of the voting rights in the partnership; or

(b) otherwise exercises control over the management of the partnership.

(3) In the case of a trust, "beneficial owner" means-

(a) any individual who is entitled to a specified interest in at least 25% of the capital of the trust property;

(b) as respects any trust other than one which is set up or operates entirely for the benefit of individuals falling within sub-paragraph (a), the class of persons in whose main interest the trust is set up or operates;

(c) any individual who has control over the trust.

(4) In paragraph (3)-

"specified interest" means a vested interest which is-

(a) in possession or in remainder or reversion; and

(b) defeasible or indefeasible;

"control" means a power (whether exercisable alone, jointly with another person or with the consent of another person) under the trust instrument or by law to-

(a) dispose of, advance, lend, invest, pay or apply trust property;

(b) vary the trust;

(c) add or remove a person as a beneficiary or to or from a class of beneficiaries;

(d) appoint or remove trustees;

(e) direct, withhold consent to or veto the exercise of a power such as is mentioned in sub-paragraph (a), (b), (c) or (d).

(5) For the purposes of paragraph (3)-

(a) where an individual is the beneficial owner of a body corporate which is entitled to a specified interest in the capital of the trust property or which has control over the trust, the individual is to be regarded as entitled to the interest or having control over the trust; and

(b) an individual does not have control solely as a result of-

(i) his consent being required in accordance with section 24(1) (c) of the Trustee Act 1975 (power of advancement); or

(ii) the power exercisable collectively at common law to vary or extinguish a trust where the beneficiaries under the trust are of full age and capacity and (taken together) absolutely entitled to the property subject to the trust.

(6) In the case of a legal entity or legal arrangement which does not fall within paragraph (1), (2) or (3), "beneficial owner" means-

(a) where the individuals who benefit from the entity or arrangement have been determined, any individual who benefits from at least 25% of the property of the entity or arrangement;

(b) where the individuals who benefit from the entity or arrangement have yet to be determined, the class of persons in whose main interest the entity or arrangement is set up or operates;

(c) any individual who exercises control over at least 25% of the property of the entity or arrangement.

(7) For the purposes of paragraph (6), where an individual is the beneficial owner of a body corporate which benefits from or exercises control over the property of the entity or arrangement, the individual is to be regarded as benefiting from or exercising control over the property of the entity or arrangement.

(8) In the case of an estate of a deceased person in the course of administration, "beneficial owner" means the executor, original or by representation, or administrator for the time being of a deceased person.

(9) In any other case, "beneficial owner" means the individual who ultimately owns or controls the customer or on whose behalf a transaction is being conducted.

(10) In this regulation-

"arrangement", "entity" and "trust" means an arrangement, entity or trust which administers and distributes funds.

Application of Regulations

4 These Regulations apply to the following persons acting in the course of business carried on by them in or from Bermuda-

(a) financial institutions;

(b) independent professionals.

PART 2

CUSTOMER DUE DILIGENCE

Meaning of customer due diligence measures

5 "customer due diligence measures" means-

(a) identifying the customer and verifying the customer's identity on the basis of documents, data or information obtained from a reliable and independent source;

(b) identifying, where there is a beneficial owner who is not the customer, the beneficial owner and taking adequate measures, on a risk-sensitive basis, to verify his identity so that the relevant person is satisfied that he knows who the beneficial owner is, including, in the case of a legal person, trust or similar legal arrangement, measures to understand the ownership and control structure of the person, trust or arrangement; and

(c) obtaining information on the purpose and intended nature of the business relationship.

Application of customer due diligence measures

6 (1) Subject to regulations 7, 10, 11, 13(4) and 14, a relevant person must apply customer due diligence measures when he-

(a) establishes a business relationship;

(b) carries out an occasional transaction;

(c) suspects money laundering or terrorist financing; or

(d) doubts the veracity or adequacy of documents, data or information previously obtained for the purpose of identification or verification.

(2) A relevant person must apply customer due diligence measures at appropriate times to existing customers on a risk-sensitive basis.

(3) A relevant person must-

(a) determine the extent of customer due diligence measures on a risk-sensitive basis depending on the type of customer, business relationship, product or transaction; and

(b) be able to demonstrate to its supervisory authority that the extent of customer due diligence measures is appropriate in view of the risks of money laundering and terrorist financing.

(4) Where-

(a) a relevant person is required to apply customer due diligence measures in the case of a trust, legal entity (other than a body corporate) or a legal arrangement (other than a trust); and

(b) the class of persons in whose main interest the trust, entity or arrangement is set up or operates is identified as a beneficial owner,

the relevant person is not required to identify all the members of the class.

Ongoing monitoring

7 (1) A relevant person must conduct ongoing monitoring of a business relationship.

(2) "Ongoing monitoring" of a business relationship means-

(a) scrutiny of transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the transactions are consistent with the relevant person's knowledge of the customer, his business and risk profile; and

(b) so far as practicable keeping the documents, data or information obtained for the purpose of applying customer due diligence measures up-to-date.

(3) Regulation 6(3) applies to the duty to conduct ongoing monitoring under paragraph (1) as it applies to customer due diligence measures.

Timing of verification

8 (1) This regulation applies in respect of the duty under regulations 6(1)(a) and (b) to apply the customer due diligence measures referred to in regulations 5(a) and (b).

(2) Subject to paragraphs (3) to (5), a relevant person must verify the identity of the customer (and any beneficial owner) before the establishment of a business relationship or the carrying out of an occasional transaction.

(3) Such verification may be completed during the establishment of a business relationship if-

(a) this is necessary not to interrupt the normal conduct of business; and

(b) there is little risk of money laundering or terrorist financing occurring, provided that the verification is completed as soon as practicable after contact is first established.

(4) The verification of the identity of the beneficiary under a life insurance policy may take place after the business relationship has been established provided that it takes place at or before the time of payout or at or before the time the beneficiary exercises a right vested under the policy.

(5) The verification of the identity of a bank account holder may take place after the bank account has been opened provided that there are adequate safeguards in place to ensure that-

(a) the account is not closed; and

(b) transactions are not carried out by or on behalf of the account holder (including any payment from the account to the account holder), before verification has been completed.

Requirement to cease transactions, etc.

9 (1) Where in relation to any customer, a relevant person is unable to apply customer due diligence measures in accordance with the provisions of these Regulations he-

(a) shall not carry out a transaction with or for the customer through a bank account;

(b) shall not establish a business relationship or carry out an occasional transaction with the customer;

(c) shall terminate any existing business relationship with the customer; and

(d) shall consider whether he is required to make a disclosure by section 46(2) of the Proceeds of Crime Act 1997 or paragraph 1 of Part I of Schedule I of the Anti-Terrorism (Financial and Other Measures) Act 2004.

(2) Paragraph (1) does not apply where a professional legal adviser  is in the course of ascertaining the legal position for his client or performing his task of defending or representing that client in, or concerning, legal proceedings, including advice on instituting or avoiding proceedings.

Simplified due diligence

10 (1) A relevant person is not required to apply the customer due diligence measures referred to in regulation 5(a), (b) or (c) in the circumstances mentioned in regulation 6(1)(a), (b) or (d) where he has reasonable grounds for believing that the customer, product or transaction related to such product, falls within any of the following paragraphs.

(2) The customer is-

(a) a financial institution which is subject to the requirements of these Regulations; or

(b) a financial institution (or equivalent institution) which-

(i) is situated in a country or territory other than Bermuda which imposes requirements equivalent to those laid down in these Regulations; and

(ii) is supervised for compliance with those requirements.

(3) The customer is a company whose securities are listed on an appointed stock exchange.

(4) The customer is an independent professional (or similar professional) and the product is an account into which monies are pooled, provided that-

(a) where the pooled account is held in a country or territory other than Bermuda-

(i) that country or territory imposes requirements to combat money laundering and terrorist financing which are equivalent to those laid down in these Regulations; and

(ii) the independent professional is supervised in that country or territory for compliance with those requirements; and

(b) information on the identity of the persons on whose behalf monies are held in the pooled account is available, on request, to the institution which acts as a custodian for the account.

(5) The customer is a public authority in Bermuda.

(6) The product is-

(a) a life insurance contract where the annual premium is no more than $1,000 or where a single premium of no more than $2,500 is paid for a single policy;

(b) an insurance contract for the purpose of a pension scheme where the contract contains no surrender clause and cannot be used as collateral; or

(c) a pension, superannuation or similar scheme which provides retirement benefits to employees, where contributions are made by an employer or by way of deduction from an employee's wages and the scheme rules do not permit the assignment of a member's interest under the scheme.

(7) The product and any transaction related to such product fulfils all the conditions set out in paragraph 1 of the Schedule.

Enhanced customer due diligence

11 (1) A relevant person must apply on a risk-sensitive basis enhanced customer due diligence measures-

(a) in accordance with paragraphs (2) to (4);

(b) in any other situation which by its nature can present a higher risk of money laundering or terrorist financing.

(2) Where the customer has not been physically present for identification purposes, a relevant person must take specific and adequate measures to compensate for the higher risk, for example by applying one or more of the following measures-

(a) ensuring that the customer's identity is established by additional documents, data or information;

(b) supplementary measures to verify or certify the documents supplied, or requiring confirmatory certification by a financial institution (or equivalent institution) which is subject to equivalent Regulations;

(c) ensuring that the first payment is carried out through an account opened in the customer's name with a banking institution.

(3) A banking institution (the "correspondent") which has or proposes to have a correspondent banking relationship with a respondent institution (the "respondent") from a country or territory other than Bermuda must-

(a) gather sufficient information about the respondent to understand fully the nature of its business;

(b) determine from publicly-available information the  reputation of the respondent and the quality of its supervision;

(c) assess the respondent's controls relating to anti-money laundering control and anti-terrorism financing controls;

(d) obtain approval from senior management before establishing a new correspondent banking relationship;

(e) document the respective responsibilities of the respondent and correspondent;

(f) be satisfied that, in respect of those of the respondent's customers who have direct access to accounts of the correspondent, the respondent-

(i) has verified the identity of, and performs ongoing due diligence on, such customers; and

(ii) is able upon request to provide relevant customer due diligence data to the correspondent.

(4) A relevant person who proposes to have a business relationship or carry out an occasional transaction with a politically exposed person must-

(a) have approval from senior management for establishing a business relationship with that person;

(b) take adequate measures to establish the source of wealth and source of funds which are involved in the business relationship or occasional transaction; and

(c) where the business relationship is entered into, conduct enhanced ongoing monitoring of the business relationship.

(5) In paragraph (4), "a politically exposed person" means a person to whom paragraph (6) applies.

(6) This paragraph applies to a person who is in any country or territory outside Bermuda-

(a) an individual who is or has, at any time in the preceding year, been entrusted with prominent public functions;

(b) a person who falls in any of the categories listed in paragraph 2(1)(a) of the Schedule;

(c) an immediate family member of a person referred to in sub-paragraph (a) including a person who falls in any of the categories listed in paragraph 2(1)(d) of the Schedule; or

(d) a known close associate of a person referred to in sub-paragraph (a) including a person who falls in either of the categories listed in paragraph 2(1)(e) of the Schedule.

(7) For the purpose of deciding whether a person is a known close associate of a person referred to in paragraph (6) (a), a relevant person need only have regard to information which is in his possession or is publicly known.

Branches and subsidiaries

12 (1) A financial institution must require its branches and subsidiary undertakings which are located in a country or territory other than Bermuda to apply, to the extent permitted by the law of that country or territory, measures at least equivalent to those set out in these Regulations with regard to customer due diligence measures, ongoing monitoring and record-keeping.

(2) Where the law of such a country or territory does not permit the application of such equivalent measures by the branch or subsidiary undertaking located in that country or territory, the financial institution shall-

(a) inform the Bermuda Monetary Authority accordingly;  and

(b) take additional measures to handle effectively the risk of money laundering and terrorist financing.

(3) In this regulation "subsidiary undertaking" except in relation to an incorporated friendly society, has the meaning given by section 86 of the Companies Act ('parent and subsidiary undertakings') and, in relation to a body corporate in or formed under the law of a country or territory other than Bermuda, includes an undertaking which is a subsidiary undertaking within the meaning of any rule of law in force in that country or territory.

Shell banks, anonymous accounts etc.

13 (1) A banking institution shall not enter into, or continue, a correspondent banking relationship with a shell bank.

(2) A banking institution must take appropriate measures to ensure that it does not enter into, or continue, a corresponding banking relationship with a bank which is known to permit its accounts to be used by a shell bank.

(3) A financial institution must not set up an anonymous account or an anonymous pass   book for any new or existing customer.

(4) As soon as possible after the commencement of these Regulations all financial institutions must apply customer due diligence measures to, and conduct ongoing monitoring of, all anonymous accounts and passbooks in existence on that date and in any event before such accounts or passbooks are used in any way.

(5) A "shell bank" means a banking institution, or an institution engaged in equivalent activities, incorporated in a jurisdiction in which it has no physical presence involving meaningful decision- making and management, and which is unaffiliated with a regulated financial group.

Reliance on third parties

14 (1) A relevant person may rely on a person who falls within paragraph (2) (or who the relevant person has reasonable grounds to believe falls within paragraph (2)] to apply any customer due diligence measures provided that -

(a) the other person consents to being relied on; and

(b) notwithstanding the relevant person's reliance on the other person,

the relevant person remains liable for any failure to apply such measures.

(2) The persons are -

(a) a financial institution;

(b) a relevant person who is-

(i) an independent professional; and

(ii) is supervised for the purposes of these Regulations by the Bermuda Bar Association or, as the case may be, the Institute of Chartered Accountants of Bermuda.

(c) a person who carries on business in a country or territory other than Bermuda who is-

(i) an institution that carries on business corresponding to the business of  financial institutions or independent professional;

(ii) in the case of an independent professional, subject to mandatory professional registration recognised by law;

(iii) subject to requirements equivalent to those laid down in these Regulations; and

(iv) supervised for compliance with requirements equivalent to supervision by his supervisory authority.

(3) Nothing in this regulation prevents a relevant person applying customer due diligence measures by means of an outsourcing service provider or agent provided that the relevant person remains liable for any failure to apply such measures.

PART 3

RECORD-KEEPING, SYSTEMS, TRAINING ETC.

Record-keeping

15 (1) A relevant person must keep the records specified in paragraph (2) for at least the period specified in paragraph (3).

(2) The records are-

(a) a copy of, or the references to, the evidence of the customer's identity obtained pursuant to regulation 6, 11, 13(4) or 14;

(b) the supporting evidence and records (consisting of the original documents or copies admissible in court proceedings) in respect of the business relationships and occasional transactions which are the subject of customer due diligence.

(3) The period is five years beginning on the date on which the business relationship ends, or, in the case of an occasional transaction, five years beginning on the date on which the transaction is completed.

(4) A relevant person who is relied on by another person must keep the records specified in paragraph (2)(a) for five years beginning on the date on which he is relied on for the purposes of regulation 6, 11 or 13(4) in relation to any business relationship or occasional transaction.

(5) But in any case where a police officer has notified a relevant person in writing that particular records are or may be relevant to an investigation which is being carried out, the relevant person must keep the records pending the outcome of the investigation.

(6) A person referred to in regulation 14(2) (a) or (b) who is relied on by a relevant person must, if requested by the person relying on him within the period referred to in paragraph (4)-

(a) as soon as reasonably practicable make available to the person who is relying on him any information about the customer (and any beneficial owner) which he obtained when applying customer due diligence measures; and

(b) as soon as reasonably practicable forward to the person who is relying on him copies of any identification and verification data and other relevant documents on the identity of the customer (and any beneficial owner) which he obtained when applying those measures.

(7) A relevant person who relies on a person referred to in regulation 14(2)(c) (a "third party") to apply customer due diligence measures must take steps to ensure that the third party will, if requested by the relevant person within the period referred to in paragraph (4)-

(a) as soon as reasonably practicable make available to him any information about the customer (and any beneficial owner) which the third party obtained when applying customer due diligence measures; and

(b) as soon as reasonably practicable forward to him copies of any identification and verification data and other relevant documents on the identity of the customer (and any beneficial owner) which the third party obtained when applying those measures.

(8) Subparagraphs (6) and (7) do not apply where a relevant person applies customer due diligence measures by means of an outsourcing service provider or agent.

(9) For the purposes of this regulation, a person relies on another person where he does so in accordance with regulation 14(1).

Systems

16 (1) A relevant person must establish and maintain appropriate and risk-sensitive policies and  procedures relating to-

(a) customer due diligence measures and ongoing monitoring;

(b) reporting;

(c) record-keeping;

(d) internal control;

(e) risk assessment and management;

(f) the monitoring and management of compliance with and the internal communication of such policies and procedures in order to prevent activities related to money laundering and terrorist financing.

(2) The policies and procedures referred to in paragraph (1) include policies and procedures-

(a) which provide for the identification and scrutiny of-

(i) complex or unusually large transactions;

(ii) unusual patterns of transactions which have no apparent economic or visible lawful purpose; and

(iii) any other activity which the relevant person regards as particularly likely by its nature to be related to money laundering or terrorist financing;

(b) which specify the taking of additional measures, where appropriate, to prevent the use for money laundering or terrorist financing of products and transactions which might favour anonymity;

(c) to determine whether a customer is a politically exposed person;

(d) under which-

(i) anyone in the organisation to whom information or other matter comes in the course of the business as a result of which he knows or suspects that a person is engaged in money laundering or terrorist financing is required to comply with sections 46(5) of the Proceeds of Crime Act 1997 or, as the case may be, section 9 or paragraph 1 of Part 1 of Schedule 1 to the Anti-Terrorism (Financial and Other Measures) Act 2004;  and

(ii) where a disclosure is made to the nominated officer, he must consider it in the light of any relevant information which is available to the relevant person and determine whether it gives rise to knowledge or suspicion that a person is engaged in money laundering or terrorist financing.

(3) A financial institution must communicate where relevant the policies and procedures which it establishes and maintains in accordance with this regulation to its branches and subsidiaries which are located outside Bermuda.

(4) A financial institution must have systems in place enabling it to respond as soon as reasonably practicable to enquiries from the Financial Intelligence Agency or a police officer-

(a) whether it maintains, or has maintained during the previous five years, a business relationship with any person; and

(b) the nature of that relationship.

Internal reporting procedures

17 (1) A relevant person must maintain internal reporting procedures which require that-

(a) the reporting officer to whom a report is to be made of any information or other matter which comes to the attention of an employee and which in the opinion of that employee gives rise to a knowledge or suspicion that another person is engaged in money laundering or terrorist financing;

(b) any such report be considered by the reporting officer in the light of all other relevant information for the purpose of determining whether or not the information or other matter contained in the report does give rise to such a knowledge or suspicion;

(c) the reporting officer be given access to any other information which may be of assistance to him in considering the report; and

(d) the reporting officer disclose to the Financial Intelligence Agency the information or other matter contained in a report, where the reporting officer knows or suspects that a person is engaged in money laundering or terrorist financing.

(2) Paragraph (1) does not apply where the relevant person is an individual who neither employs nor acts in association with any other person.

Training etc.

18 (1) A relevant person must take appropriate measures so that all relevant employees of his are-

(a) made aware of the law relating to money laundering and terrorist financing; and

(b) regularly given training in how to recognise and deal with transactions which may be related to money laundering or terrorist financing.

(2) For the purposes of this paragraph, an employee is a relevant employee if, at any time in the course of his duties, he has, or may have access to any information which may be relevant in determining whether any person is engaged in money laundering or terrorist financing.

Offences

19 (1) A person who fails to comply with any requirement in regulations 6(1), (2) and (3), 7(1) and (3), 8(2), 9(1)(a), (b) and (c), 11(1), 12(1) and (2), 13(1), (2), (4) and (5), 15(1), (4), (5), (6) and (7), 16(1), (3) and (4), and 18(1) is guilty of an offence and 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.

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

(a) issued by a supervisory authority;

(b) approved by the Minister; and

(c) published in 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. .

(3) 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.

(4) 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.

BR9/1008 revoked

20 The Proceeds of Crime (Money Laundering) Regulations 1998 are revoked.

SCHEDULE (Regulation 10(7))

SIMPLIFIED DUE DILIGENCE AND

POLITICALLY EXPOSED PERSONS

Simplified due diligence

1 For the purposes of regulation 10(7), the conditions are-

(a) the product has a written contractual base;

(b) any related transaction is carried out through an account of the customer with a banking institution which is subject to these Regulations or a banking institution situated in a country or territory other than Bermuda which imposes requirements equivalent to those laid down in these Regulations;

(c) the product or related transaction is not anonymous and its nature is such that it allows for the timely application of customer due diligence measures where there is a suspicion of money laundering or terrorist financing;

(d) the product is within the following maximum threshold-

(i) in the case of insurance policies or savings products of a similar nature, the annual premium is no more than $1,000 or there is a single premium of no more than $2,500;

(ii) in the case of products which are related to the financing of physical assets where the legal and beneficial title of the assets is not transferred to the customer until the termination of the contractual relationship (whether the transaction is carried out in a single operation or in several operations which appear to be linked), the annual payments do not exceed $15,000;

(iii) in all other cases, the maximum threshold is $15,000.

(e) the benefits of the product or related transaction cannot be realised for the benefit of third parties, except in the case of death, disablement, survival to a predetermined advanced age, or similar events;

(f) in the case of products or related transactions allowing for the investment of funds in financial assets or claims, including insurance or other kinds of contingent claims-

(i) the benefits of the product or related transaction are only realisable in the long term;

(ii) the product or related transaction cannot be used as collateral; and

(iii) during the contractual relationship, no accelerated payments are made, surrender clauses used or early termination takes place.

Politically exposed persons

2 (1) For the purposes of regulation 11(6)-

(a) individuals who are or have been entrusted with prominent public functions include the following-

(i) heads of state, heads of government, ministers and deputy or assistant ministers; 

(ii) members of parliaments;

(iii) members of supreme courts, of constitutional courts or of other high-level judicial bodies whose decisions are not generally subject to further appeal, except in exceptional circumstances;

(iv) members of courts of auditors or of the boards of central banks;

(v) ambassadors, chargés d'affaires and high-ranking officers in the armed forces; and 

(vi) members of the administrative, management or supervisory bodies of State-owned enterprises;

(b) the categories set out in sub-paragraphs (i) to (vi) of paragraph (a) do not include middle-ranking or more junior officials;

(c) the categories set out in sub-paragraphs (i) to (v) of paragraph (a) include, where applicable, positions at domestic and international level;

(d) immediate family members include the following-

(i) a spouse;

(ii) a partner;

(iii) children and their spouses or partners; and

(iv) parents;

(e) persons known to be close associates include the following-

(i) any individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with a person referred to in regulation11(6)(a); and

(ii) any individual who has sole beneficial ownership of a legal entity or legal arrangement which is known to have been set up for the benefit of a person referred to in regulation 11(6)(a).

(2) In paragraph (1) (d), "partner" means a person who is considered by his national law as equivalent.

Made this 24th day of November, 2008

Minister of Justice