The US State Department's International Narcotics Control Strategy Report recommends that Bermuda strengthen regulations to combat money laundering and terrorism finance.

The online article said countries like Bermuda remained vulnerable to this type of crime because of its significant offshore sector and tax free jurisdiction.

While Bermuda was lauded for the integrity of its financial regulatory system and for the fact that its Government co-operates with the United States and the international community to counter money laundering and terrorist financing and continues to update its legislation, US officials still urged for the enactment of measures to detect and monitor cross-border transportation of cash and monetary instruments.

Other countries highlighted by the report include Anguilla, the British Virgin Islands, Cayman Islands, Turks and Caicos and Montserrat.

According to the online article, Montserrat, one of the smallest financial sectors of the Caribbean overseas territories of the United Kingdom, was dubbed as a major attraction for money launders because of the lack of regulatory resources.