A news agency article which lumped Bermuda in with Arab nations and Pakistan as uncooperative to authorities following the trail of terrorist money has been slammed as inaccurate.

A story yesterday by Reuters European Banking Correspondent Joe Ortiz had European governments pledging increased efforts to clamp down on criminals' money in the global financial system in the wake of last week's attacks in the US.

But the article stated: "However, Thomas Wania, a senior banker at Commerzbank in Frankfurt, said following a paper trail of suspected money would be quick and easy in the West but trickier in countries such as Bermuda, Pakistan or in the Arab world."

Bermuda International Business Association chief executive officer Pat Phillip-Bassett responded: "I don't think Mr Wania can be that familiar with Bermuda. Bermuda has lots of checks and balances and very stringent anti-money laundering rules. We also have long-standing co-operation with the UK and the US."

Bank of Bermuda produced its normal anti-money laundering release stating that Bermuda is highly regulated.

Calls to the Minister of Finance Eugene Cox were not returned at Press time.

In the article, Britain called for new global rules obliging financial institutions to report suspect transactions, and Switzerland said it would not let its tradition of banking secrecy stand in the way of co-operation with other countries on the issue.

It added that European Union finance ministers will discuss what measures should be taken in areas such as banking supervision at a meeting in Liege, Belgium at the weekend, according to Belgian Finance Minister Didier Reynders.

It also quoted British Chancellor of the Exchequer Gordon Brown as having told BBC radio international action was needed because individual states could not fully tackle the problem with measures of their own.

"It's necessary to create that wider (reporting) obligation on international institutions, but equally it's necessary to have a system of reporting so that there's not only no safe haven (for terrorists) but no hiding place for terrorist money," Brown said.

"We have to persuade some countries that have been reluctant to do far more," he said.

The US Treasury's under secretary for enforcement, Jimmy Gurule said yesterday that the department would use every tool it has to track the sources of funding for the perpetrators of last week's attacks.

"We're going to be following the money trail wherever it leads," he told a Washington news conference.

The article said bankers said tracking funds to specific suspects, such as Saudi-born millionaire Osama bin Laden who is suspected of involvement in the US attacks, will be tough.

"Obviously no known terrorist with an ounce of grey matter between his ears would open an account in his own name. And then difficulties start," said James Nason, spokesman for the Swiss Bankers' Association.

Ricco Koslowski, director of corporate investigations for the London-based Control Risks consulting firm, told the German weekly newspaper Die Zeit that it was doubtful the perpetrators of last week's attack used regular financial channels.

They were more likely to have used illegal "underground banking", which bypasses official banking networks, he said.

"Technical surveillance doesn't make any sense in this case," Koslowski said. "Underground banking doesn't leave a paper trail."