Weathering the geopolitical storms
20 Aug 2025
The massive geopolitical shifts of 2025 will undoubtedly have an adverse impact on some financial centres around the world. Bermuda, however, is well placed to weather the storm
Image: khondokarsayeedul/stock.adobe.com
Trouble in the time of Trump – or not?
The United States government has moved decisively away from the post-1945 system of free(ish) trade and multi-lateral institutions. Is this a problem for Bermuda, a financial centre where activity is closely linked to cross-border transactions?
Kendaree Burgess, the managing director of Bermuda’s Business Development Agency (BDA), thinks not.
“Bermuda has always benefited from a strong, stable relationship with the United States, and our legal regulatory and economic frameworks are closely aligned with US and global standards. We don’t see current US policy shifts as a threat to our jurisdiction. Rather, they underscore the need for trusted, well-regulated financial centres like Bermuda,” she suggests.
Other asset servicing industry sources concur — at a time that global firms seek greater clarity and control of risks, the geopolitical changes may actually represent an opportunity for Bermuda.
DABA and other regulatory changes in 2025-26
There is talk that the Bermuda Monetary Authority (BMA) proposes to make changes to the Corporate Service Provider Business Act of 2012. The aim is to increase standards of compliance and transparency. Specifically, licensed service providers will be expected to maintain adequate liquidity, adhere to improved auditor reporting responsibilities and have clearer internal controls in relation to the handling of third-party assets.
BDA’s Burgess observes that the Digital Asset Business Act (DABA) is also being updated.
“The BMA’s risk-based and principles-led approach should allow businesses to grow responsibly, supported by guidance from the Custody Code of Practice and from new updates on stablecoins and tokenisation.”
The DABA covers digital asset exchanges, custodians, payment providers, and token issuers: the new legislation positions Bermuda as a centre where investors and service providers can engage with digital assets within a framework that meets global standards. Further, the new Payment Services Provider Regulatory Framework will also support the movement of digital payment rails and blockchain-based solutions into the mainstream.
Burgess adds: “There are other positive changes that are worthy of note. The Trustee Act is being amended to allow consideration by trustees of sustainability-related factors in investment decisions.
Changes to the Corporate Income Tax Act of 2023 will align Bermuda with the OECD’s Pillar Two and will enhance the standing of Bermuda as a transparent and compliant jurisdiction.”
Finally, there will be a new opt-in benefit company regime. This will allow companies to formally balance profit with a defined public benefit. Bermuda will be the first international finance centre to introduce such a company structure.”
General trends remain positive
There are several positive trends to note. One is growth in the use of the Incorporated Segregated Accounts Company (ISAC) structure — which provides greater legal clarity for multi-strategy or multi-account entities.
Another is the adoption by asset servicing organisations of RegTech tools that automate compliance functions and improve reporting efficiency. Meanwhile, operational resilience is improving. The proposed Operational Resilience and Outsourcing Code will require that firms strengthen third-party oversight, risk management frameworks and continuity planning.
For her part, BDA’s Burgess notes that: “Bermuda continues to attract regulated digital asset exchanges and institutional financial services firms, particularly those seeking a well-established, transparent framework, and direct engagement with an experienced regulator. While global regulatory complexity remains a challenge, Bermuda’s collaborative ecosystem of industry, government and regulator helps firms navigate those pressures efficiently.”
Burgess also sees artificial intelligence as an opportunity: “Financial services firms are beginning to integrate AI into operations, from investment analytics to compliance and client servicing. BDA has convened working groups to explore AI policy — and the intersection with our legal system.
This includes frameworks for Decentralised Autonomous Organisations (DAOs). The government has introduced an AI policy for public sector use, focusing on ethics, accountability and oversight.”
The human factor
Industry sources highlight Bermuda’s skilled workforce as a key advantage for an asset servicing centre.
Nevertheless, employers are finding it hard to fill positions in specific areas such as fintech, cybersecurity and specialist fund accounting.
To counter the challenge, the government is making it easier for companies to bring in suitable specialists from outside Bermuda.
Burgess highlights: “The revised Work Permit Policy is due to come into effect from the beginning of September 2025. The new policy includes clearer processing timelines and introduces a number of new categories: these include a Family Office Permit, in line with Bermuda’s broader economic strategy.
“The revisions also allow for a predetermined number of permits for new companies in sectors such as fintech, striking a practical balance between supporting Bermudian employment and enabling business growth.
“Asset servicing firms benefit from Bermuda’s concierge model, a co-ordinated high-touch environment where firms can access regulators, policy-makers and service providers with ease. That efficiency, along with Bermuda’s lifestyle and global connectivity, continues to draw capital and talent to our shores.”
The bottom line
The geopolitical storms of 2025 are unlikely to have a significant impact on Bermuda — which is as well placed as any international financial centre to benefit from geopolitical uncertainty and disruption to traditional trade flows. Regulations are clear and consistent with international norms.
The BMA and other stakeholders continue to modify regulations in response to new conditions (and opportunities) — but the changes are predictable.
The authorities are responding sensibly to challenges such as the shortage of specialists in particular areas.
Bermuda also benefits from being an ecosystem of diverse financial businesses. Thanks to the updating of the DABA, it may well emerge as a major centre for the servicing of digital assets.
The United States government has moved decisively away from the post-1945 system of free(ish) trade and multi-lateral institutions. Is this a problem for Bermuda, a financial centre where activity is closely linked to cross-border transactions?
Kendaree Burgess, the managing director of Bermuda’s Business Development Agency (BDA), thinks not.
“Bermuda has always benefited from a strong, stable relationship with the United States, and our legal regulatory and economic frameworks are closely aligned with US and global standards. We don’t see current US policy shifts as a threat to our jurisdiction. Rather, they underscore the need for trusted, well-regulated financial centres like Bermuda,” she suggests.
Other asset servicing industry sources concur — at a time that global firms seek greater clarity and control of risks, the geopolitical changes may actually represent an opportunity for Bermuda.
DABA and other regulatory changes in 2025-26
There is talk that the Bermuda Monetary Authority (BMA) proposes to make changes to the Corporate Service Provider Business Act of 2012. The aim is to increase standards of compliance and transparency. Specifically, licensed service providers will be expected to maintain adequate liquidity, adhere to improved auditor reporting responsibilities and have clearer internal controls in relation to the handling of third-party assets.
BDA’s Burgess observes that the Digital Asset Business Act (DABA) is also being updated.
“The BMA’s risk-based and principles-led approach should allow businesses to grow responsibly, supported by guidance from the Custody Code of Practice and from new updates on stablecoins and tokenisation.”
The DABA covers digital asset exchanges, custodians, payment providers, and token issuers: the new legislation positions Bermuda as a centre where investors and service providers can engage with digital assets within a framework that meets global standards. Further, the new Payment Services Provider Regulatory Framework will also support the movement of digital payment rails and blockchain-based solutions into the mainstream.
Burgess adds: “There are other positive changes that are worthy of note. The Trustee Act is being amended to allow consideration by trustees of sustainability-related factors in investment decisions.
Changes to the Corporate Income Tax Act of 2023 will align Bermuda with the OECD’s Pillar Two and will enhance the standing of Bermuda as a transparent and compliant jurisdiction.”
Finally, there will be a new opt-in benefit company regime. This will allow companies to formally balance profit with a defined public benefit. Bermuda will be the first international finance centre to introduce such a company structure.”
General trends remain positive
There are several positive trends to note. One is growth in the use of the Incorporated Segregated Accounts Company (ISAC) structure — which provides greater legal clarity for multi-strategy or multi-account entities.
Another is the adoption by asset servicing organisations of RegTech tools that automate compliance functions and improve reporting efficiency. Meanwhile, operational resilience is improving. The proposed Operational Resilience and Outsourcing Code will require that firms strengthen third-party oversight, risk management frameworks and continuity planning.
For her part, BDA’s Burgess notes that: “Bermuda continues to attract regulated digital asset exchanges and institutional financial services firms, particularly those seeking a well-established, transparent framework, and direct engagement with an experienced regulator. While global regulatory complexity remains a challenge, Bermuda’s collaborative ecosystem of industry, government and regulator helps firms navigate those pressures efficiently.”
Burgess also sees artificial intelligence as an opportunity: “Financial services firms are beginning to integrate AI into operations, from investment analytics to compliance and client servicing. BDA has convened working groups to explore AI policy — and the intersection with our legal system.
This includes frameworks for Decentralised Autonomous Organisations (DAOs). The government has introduced an AI policy for public sector use, focusing on ethics, accountability and oversight.”
The human factor
Industry sources highlight Bermuda’s skilled workforce as a key advantage for an asset servicing centre.
Nevertheless, employers are finding it hard to fill positions in specific areas such as fintech, cybersecurity and specialist fund accounting.
To counter the challenge, the government is making it easier for companies to bring in suitable specialists from outside Bermuda.
Burgess highlights: “The revised Work Permit Policy is due to come into effect from the beginning of September 2025. The new policy includes clearer processing timelines and introduces a number of new categories: these include a Family Office Permit, in line with Bermuda’s broader economic strategy.
“The revisions also allow for a predetermined number of permits for new companies in sectors such as fintech, striking a practical balance between supporting Bermudian employment and enabling business growth.
“Asset servicing firms benefit from Bermuda’s concierge model, a co-ordinated high-touch environment where firms can access regulators, policy-makers and service providers with ease. That efficiency, along with Bermuda’s lifestyle and global connectivity, continues to draw capital and talent to our shores.”
The bottom line
The geopolitical storms of 2025 are unlikely to have a significant impact on Bermuda — which is as well placed as any international financial centre to benefit from geopolitical uncertainty and disruption to traditional trade flows. Regulations are clear and consistent with international norms.
The BMA and other stakeholders continue to modify regulations in response to new conditions (and opportunities) — but the changes are predictable.
The authorities are responding sensibly to challenges such as the shortage of specialists in particular areas.
Bermuda also benefits from being an ecosystem of diverse financial businesses. Thanks to the updating of the DABA, it may well emerge as a major centre for the servicing of digital assets.
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