On 16 May 2022, Bermuda's Registrar of Companies
(Registrar) announced that reviews of Bermuda
entities' economic substance compliance would commence
immediately.
In order for the Registrar to demonstrate the effectiveness of
its supervisory framework, it will undertake both desktop and
on-site audits of Bermuda entities.
This announcement follows the Registrar's recent
non-compliance actions in March and April 2022 with respect to
economic substance for the 2019 and 2020 financial periods.
Proposed penalties for non-compliance for these periods ranged from
$7,500 to $100,000 (per offending entity).
If a Bermuda entity receives a compliance review notification
from the Registrar, Appleby's experienced and dedicated
regulatory team is ready to assist with any preparation
requirements.
