ARTICLE
9 January 2025

Trust Company Fined $600,000 For Sanctions And AML Compliance Failings

DM
Duane Morris LLP

Contributor

Duane Morris LLP, a law firm with more than 900 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges.
On 30 December the Bermuda Monetary Authority announced the imposition of a fine of $600,000 on Meritus Trust Company Limited for a series of AML and sanctions compliance failings.
Bermuda International Law

On 30 December the Bermuda Monetary Authority announced the imposition of a fine of $600,000 on Meritus Trust Company Limited for a series of AML and sanctions compliance failings.

In terms of sanctions compliance the failing was specified as "An overreliance on manual processes to implement international sanctions policies and procedures and sanctions screening".

The BMA's on-site investigation was commenced in June 2022 and the company was then given a deadline of July 2023 to complete the necessary remediation. The BMA was satisfied with the company's efforts and noted a number of mitigating factors such as a low risk of loss to clients, co-operation, the remediation efforts, and the company's overall culture of compliance.

This is a rare example of a sanctions enforcement fine being imposed in one of the UK's overseas territories or crown dependencies. The only other example known (to this blog) are the fines and other punishments imposed in Guernsey in 2015/2016.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More