Bermuda: Finance and Banking

Bermuda is not considered an international banking center and only banks licensed by the Bermuda Monetary Authority (BMA) under the Banks and Deposit Companies Act 1999 (BDCA) are entitled to undertake banking businesses in or from Bermuda.

This report provides a summary of important legislative and regulatory developments in Bermuda for the quarter ended 30 June 2022.

This report provides a summary of important legislative and regulatory developments in Bermuda for the quarter ended 31 March 2022.

The Bermuda Stock Exchange has introduced a streamlined listing process for securities issued under previously approved debt or insurance-linked securities programmes, reducing approval timelines and administrative requirements. The updates include expedited next-business-day approvals and new abridged application forms designed to minimize duplication of information already contained in approved programme documentation.

Global M&A activity surged to a five-year high in the first half of 2026 while IPO markets remained highly selective, with Bermuda companies demonstrating continued strength through strategic redomiciliations, major acquisitions, and sustained capital markets activity across shipping, financial services, and energy sectors.

In considering the type of security it will take, a lender will want to ensure that its security has not only been validly created and perfected but also that such security ranks as expected against other competing interests.

The Bermuda Monetary Authority has introduced new requirements for police clearance certificates when vetting key personnel at anti-money laundering and anti-terrorist financing regulated financial institutions. This policy change affects licensing, recruitment, and ownership transitions by requiring criminal record documentation from countries where individuals have resided, with specific implications varying across different sectors of Bermuda's financial services industry.

George McCallum, Karim Creary, and Jarion Richardson examine Bermuda's anti-money laundering framework for Digital Asset Business Act licence applications, exploring the policies, procedures, and governance structures that applicants must establish. The discussion reveals common pitfalls in AML programme preparation and explains how the Bermuda Monetary Authority evaluates compliance effectiveness.

The Bermuda Monetary Authority is proposing eight new banking models to modernize and diversify the island's financial sector, with a particular focus on serving digital asset businesses and expanding access to specialized wholesale and retail banking services. Will these reforms position Bermuda as a leader in offshore banking innovation while maintaining its reputation for robust regulation and financial stability?

The Bermuda Monetary Authority has introduced new sustainability disclosure requirements for investment funds and launched a streamlined Approval in Principle process to accelerate fund registrations. These regulatory developments aim to enhance investor protection while maintaining Bermuda's competitive position in the global investment funds market.

Bermuda's private equity funds face mounting pressure as net asset values concentrate in fewer, larger portfolios while traditional exit routes remain constrained. With merger and acquisition markets uncertain and distribution droughts complicating fundraising, sponsors must navigate continuation vehicles and NAV financing as alternative liquidity solutions, each carrying distinct structural complexities and contractual implications under Bermuda's flexible partnership framework.

Bermuda's investment funds regime provides sponsors with a sophisticated regulatory framework that balances flexibility with investor protection. From registered private funds to authorised retail vehicles, the jurisdiction accommodates diverse strategies through multiple structural options including SACs, ISACs, and traditional partnerships. Understanding the classification system, ongoing compliance requirements, and the interplay between fund regulation and investment business licensing is essential for