Assessment of Local Charities Sector

Monday, April 23, 2018

Oyster Consulting (Bermuda) Ltd. has been engaged by the Registry General to assist with a national assessment of the entire local charities sector. This is being conducted to identify if any entities are vulnerable to being used as a conduit for terrorist financing. 

Oyster Consulting (Bermuda) Ltd., on behalf of the Registry General, will be contacting local churches, charitable trusts, companies limited by guarantee or any other legal entity set up in Bermuda as a charity, for relevant information to assess whether there are any potential risks.

Non-profit organizations around the world are now being monitored progressively as it has been discovered that these organizations are vulnerable to being misused by criminals to launder money or finance terrorism.

Keeping in line with Bermuda’s effort to combat money laundering and terrorist financing, the Registrar General, in consultation with the National Anti-Money Laundering Committee (NAMLC), has been tasked with monitoring/regulating the charities sector.

The Charities Act 2014 designated the Registrar General as the competent authority for charities. As such, the Registrar is required by Financial Action Task Force’s (FATF) international standards to review and assess all charitable entities within the sector to identify any risk that may exist.  Pursuant to section 2 of the Act, a charity means an entity which is established in Bermuda for charitable purposes; this includes those that are registered or unregistered.

The Registrar is primarily focused on charities’ potential international exposure which may make them vulnerable to being abused as mechanisms for the financing of terrorism.