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ARTICLE · 22 JULY 2026

It’s Healthy To Sometimes Disagree With Regulators

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Bermuda's risk-based financial regulatory framework inevitably creates disagreements between regulated entities and the Bermuda Monetary Authority over compliance interpretations. This analysis explores why such conflicts arise in proportionate regulatory systems and presents a structured five-step approach for resolving regulatory disputes without resorting to costly litigation while maintaining professional relationships.

BermudaFinance and Banking
Jarion Richardson
Jarion Richardson
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That is not an indictment of the regulator; it is the natural result of a regulatory system that depends on judgment.

Bermuda’s financial services framework is not built entirely on rigid prescription. Significant parts of it are proportionate, risk-based and dependent on the nature, scale, complexity and risk profile of the business.

The Bermuda Monetary Authority, as regulator, describes its supervisory process as risk-based, with risk identification, assessment, prioritisation and regulatory response forming core components of supervision.

Its AML/ATF (anti-money laundering/anti-terrorist financing) Guidance Notes require regulated financial institutions to assess their risks, take account of Bermuda’s most recent national risk assessments, and apply compliance resources proportionately to the risks identified.

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