The Bermuda Monetary Authority (the Authority) is the integrated regulator of the financial services sector in Bermuda. It is not a central bank, and does not provide lender of last resort facilities.
A world leading re-insurance hub and a popular offshore jurisdiction, Bermuda is generally considered a mature jurisdiction with robust financial and regulatory environment. However, the regulator faces multiple accusations of corruption and is involved in numerous legal battles.
History
The Bermuda Monetary Authority (BMA) was created by the Bermuda Monetary Authority Act 1969 and became fully operational in 1970. On 6 February 1970 it issued the first Bermudian dollar, valued at BMD 2.40 to Bermudian £1. British notes and coins that had circulated previously were demonetised in June 1970. In mid-1972 Bermuda adopted the United States dollar as its anchor currency, and the BMA assumed responsibility for exchange control. That role was expanded in 1974. On 22 May 1981 the Bermudian dollar was formally fixed as "equivalent to one dollar in the currency of the United States of America".
The Act was amended in 2019, adding a new statutory objective "to establish and administer an innovation hub to facilitate the development of innovative business in Bermuda".[1]