1. Introduction
a. History and background
The 350 small islands that make up Bermuda are located in the
north-west Atlantic, about 570 miles to the east of North Carolina.
Bermuda is the United Kingdom’s oldest overseas territory and has
been self-governing since 1622.
Bermuda is an offshore financial centre, providing financial
support to the international business community. Over 16,000
international companies are registered in Bermuda and it has a
large reinsurance industry. Bermuda earns a gross domestic product
in excess of BMD2 billion, giving the population of only 63,000 a
high per capita income.
The currency is the Bermuda dollar (BMD), pegged to the US
dollar.
b. Legal system
Bermuda’s legal system has its roots in English common law, the
doctrines of equity and English statute law in force in 1612. UK
case law remains of persuasive authority today and ultimate right
of appeal still lies with the UK Privy Council. Bermuda’s
regulatory environment protects and supports its offshore financial
regime.