A bank ban on US travellers’ cheques and money orders was yesterday blasted by the boss of an tourist booking service.

And Fiona Campbell, owner of Bermuda Acommodations, said the move could damage the Island’s already struggling visitor industry.

Ms Campbell added: “We’ve just gotten a note from Butterfield telling people they can’t spend travellers’ cheques in Bermuda and that there’s all sorts of restrictions on money orders.”

Ms Campbell was speaking after Butterfield Bank said it would no longer accept US dollar traveller’s cheques or money orders, which are issued by places like the US Postal Service and Money Gram, because US-imposed restrictions aimed at money launderers meant they cost too much in time and money to process.

But Ms Campbell said: “They’re making it more and more difficult for people to come down.

“People don’t necessarily want to use credit cards, they want to use travellers’ cheques and cash and money orders, and the banks are making it increasingly difficult.

“I stay in touch with people from the local perspective, but what really interests me is that if you’re going to be cultivating tourism you got to make it easier for tourists to come down, not more difficult.

“This banking nonsense is really becoming a hassle.”

Butterfield Bank told its customers it had changed its policy on traveller’s cheques and money orders, effective from the end of next month, because of restrictions designed to crack down on money laundering imposed by the US Patriot Act and the Bank Secrecy Act.

The statement said: “As they can be purchased for cash with no identification required, there has been increasing use of these instruments in fraudulent financial transactions, with the result that enhanced screening and handling protocols are required, which adds cost and time to their processing.”

Butterfield, however, said that certified cheques and bank drafts issued by US financial institutions, would continue to be accepted.

The advice to customers said: “Butterfield will continue to accept certified cheques and bank drafts for deposit. Drafts and certified cheques are only sold by financial institutions to their existing known customers.

“The customer must have an account to purchase a draft or have a cheque certified. The customer will have provided their bank with full ‘know your customer’ information when they opened the account.”

The new rules state that travellers’ cheques will not be accepted by the bank after February 28.