It is interesting to see the Bermuda Government’s newly expanded AML/ATF requirements for financial institutions that do business with trusts:

The institution must verify the identities of the trustees (or equivalent) as beneficial owners, if not already identified as customers of the institution. The identities of other beneficial owners, either individuals or a class, as appropriate, must also be verified

Moreover, special efforts must be undertaken when “politically exposed persons” (aka PEP) are involved in a trust.

Individuals who have or have had a high political profile, or hold or have held public office, can pose a higher money laundering or terrorist financing risk to institutions as their position may make them vulnerable to corruption. This risk also extends to members of their immediate families and to known close associates. PEP status itself does not, of course, incriminate individuals or entities. It does, however, put the customer or the beneficial owner, into a higher-risk category.

It seems pretty logical.  One would hope that Government would follow its own advice. See also.

The Commission has recommended a list of steps to rectify the situation.  Most are plain common sense, from which even Bermuda could glean some useful reform ideas.

All corporate bodies and those acting for others in a trustee or nominee capacity should be required to disclose the true beneficial ownership of or interest involved to any public body required or seeking to exercise due diligence in contemplation of the grant of Crown land or of development approval or any public works or other public contract whether of franchise, licence or otherwise – coupled with a heavy potential civil (including rescission) and/or criminal sanction for noncompliance.

Hey, Bermuda doesn’t this sound like a smart idea?  Ahem, cough, courthouse.