Despite objections from the Opposition and one Independent Senator, a bill enhancing the Bermuda Monetary Authority's ability to fight financial crime was passed in the Upper House yesterday.

Senators heard that the legislation would extend the BMA's authority to investigate suspected financial crime incidents and would help Bermuda meet United Nations anti-terrorism measures.

The BMA's independence from Government was also strengthened by a measure which allows it to collect fees directly from financial services providers.

The legislature retains final approval over what fees are charged, however.

Such fees are currently paid into Government's consolidated fund.

The bill also allows the Finance Minister to delegate powers to the Authority by writing a letter.

This would primarily be used to ensure that Bermuda's institutions are not used by international terrorists to harbour or transmit funds.

Sen. Walwyn Hughes (Ind) questioned how much consultation had taken place with industry in developing the bill.

He objected to the bill's passage on the grounds that the powers granted to the BMA were too broad in scope.

Opposition Senators Kim Swan, Neville Darrell and Leonard Santucci also said they believed the bill was flawed and its objectives should be more specifically defined.

But Government Senate leader David Burch said the Opposition Senators were just playing politics.

"With the eight pages of this amendment, you have a problem with one subparagraph and that makes you say it should be put back," Sen. Burch said. "If you are not trying to jump on the political expediency bandwagon, what are you doing?"

Sen. Michael Scott (PLP) said he could not understand why Sen. Hughes objected to the bill given that it is clearly needed to fight terrorism.

Sen. Scott said in the post 9-11 climate it was crucial for the Island to come up with legislation up to international standards to deter terrorism.

And he said he believed it was better to have broad legislation for this purpose as it would be more flexible.

Senate President Alf Oughton pointed out that Finance Minister Eugene Cox has committed in Parliament to bringing further amendments to the bill if it was deemed to be necessary in further consultation with the financial community.

Government Sen. Patrice Parris - who introduced the bill yesterday - said the legislation followed in the footsteps of other existing legislation to fight financial crime.

The four objecting Senators voted against the bill on both its second and third reading but it passed with the support of the remainder of the chamber by six votes to four.

Senate coverage continues on Page 10