This country-specific Q&A provides an overview of Fintech laws and regulations applicable in Bermuda.
1. WHAT ARE THE SOURCES OF PAYMENTS LAW IN YOUR JURISDICTION?
The main laws which regulate electronic payments in Bermuda are the:
- Banks and Deposit Companies Act 1999 (Banks Act)
- Bermuda Monetary Authority Act 1969 (BMA Act)
- Electronic Transaction Act 1999 (ETA)
- Money Service Business Act 2016 (MSB Act)
With the introduction of digital assets to Bermuda the Digital Asset Business Act 2018 (DABA) working in tandem with the statutes listed above regulates payments made using cryptocurrencies.
2. CAN PAYMENT SERVICES BE PROVIDED BY NON-BANKS, AND IF SO, ON WHAT CONDITIONS?
Payment services can be provided by non-banks on the condition they have received a licence from the Bermuda Monetary Authority to do so. The licence that will apply will depend on the type of activities and business to be carried out by the applicant from and within Bermuda.
3. WHAT ARE THE MOST POPULAR PAYMENT METHODS AND PAYMENT INSTRUMENTS IN YOUR JURISDICTION?
The most popular payment methods in Bermuda are Debit/Credit Cards, Cash and Cheques.
4. WHAT IS THE STATUS OF OPEN BANKING IN YOUR JURISDICTION (I.E. ACCESS TO BANKS’ TRANSACTION DATA AND PUSH-PAYMENT FUNCTIONALITY BY THIRD PARTY SERVICE PROVIDERS)? IS IT MANDATED BY LAW, IF SO, TO WHICH ENTITIES, AND WHAT IS STATE OF IMPLEMENTATION IN PRACTICE?
Bermuda’s current legislation does not directly address the sharing of bank transaction data or the use of push-payment functionality by third-party service providers. This means there is no legal mandate for open banking in the jurisdiction.
For further information, please contact:
Jerome Wilson, Partner, Appleby
jwilson@applebyglobal.com
