Deputy Governor Peter Willis last night dismissed reports Britain had positioned itself to intervene in Bermuda's war on money laundering.

And he declared Bermuda had already taken steps to combat the crime.

The reports stemmed from a statement by Foreign Office Minister Sir Nicholas Bonsor in London's House of Commons.

According to yesterday's Mid-Ocean News, Britain had restated the Governor's right to "reject, amend and introduce'' legislation in Bermuda and four Caribbean islands.

Whitehall sources reportedly said the move was a first step in fighting money laundering.

The paper said Sir Nicholas, in answer to a Parliamentary question, told MPs that Britain had examined "actual or potential problems (in the territories) -- Bermuda, the British Virgin Islands, the Cayman Islands, Montserrat and the Turks & Caicos Islands.'' British Foreign Office spokesman Neville Johnson is quoted as saying Britain had "restated'' the powers of the Governor to intervene.

Last night Mr. Willis, however, said he had read Sir Nicholas' House of Commons statement.

And he stressed Sir Nicholas was not referring to Bermuda.

Instead, the Minister was talking about five Caribbean islands -- Anguilla, British Virgin Islands, the Cayman Islands, Montserrat and the Turks & Caicos.

"The Parliamentary question referred to five Caribbean countries. The story in the paper has somehow linked that to money laundering in Bermuda. Really there is no story.'' Mr. Willis said it was important to remember Bermuda was about to introduce money laundering legislation -- the Proceeds of Crime bill.

"Bermuda has an inestimable reputation for its integrity. On the problem of money laundering, Bermuda is already well placed to tackle it, so the article in the paper gives entirely the wrong impression.'' Mr. Willis continued: "There is also a world of constitutional difference between Bermuda and the other Caribbean islands. Bermuda is constitutionally more advanced.

"The reserve powers of the Governor are limited and even within those areas of reserve power there is a considerable area of delegation to the Government.'' CRIME CRM GOVERNOR GOV NEWSPAPER NJ