Bermuda creates new banking regime for FinTech businesses

The Bermuda Government has taken steps towards resolving a critical unmet need for FinTech companies in Bermuda and to remove a current impediment to the development of the island as a FinTech hub as a result of the reticence of Bermuda's domestic banks to provide banking facilities locally to FinTech businesses.

The Premier and Minister of Finance, The Hon. David Burt, JP, MP and his cabinet addressed this issue by introducing the Banks and Deposit Companies Amendment Act 2018, which was approved by the House of Assembly on 27th July 2018, which amends Bermuda's existing bank licensing framework under the Banks and Deposit Companies Act 1999 to enable the island's finance service regulator, the Bermuda Monetary Authority (the "BMA") to issue restricted banking licenses to banks to enable them to serve the FinTech sector.

 

Click to view advisory