Bermuda
Bank Deposits
Until
2003, foreign banks were not permitted
to operate in Bermuda, but in that year
HSBC took over the Bank of Bermuda.
The
Bermuda Monetary Authority supervises
Bermudian banks. Each bank maintains
its own trust company and the domestic
banks operate a joint clearing system.
Although few in number, the Bermudian
banks have expanded throughout the world
and have subsidiaries in the major financial
centres. They offer a full range of
banking services.
The
early decision of the Bermuda Government
to exclude foreign banks may have owed
more to self-interest than to fear of
money-laundering or the OECD, but it
turns out to have been very successful,
leading not only to Bermuda's high reputation
but to the establishment of strong,
local banks, something that has eluded
almost all other IOFCs.
A
number of financial advisory and securities
firms with foreign involvement have
been established in Bermuda, some in
connection with the Stock Exchange.
Through
an accident of geography, Bermuda was
not included in the EU's Savings Tax
Directive, which has been in operation
since 1st July, 2005.
