Legislation passed in the Senate will give Bermuda more power to manage the threats of money laundering and terrorist financing.

The Anti-Terrorism (Financial and Other Measures) Amendment Act was passed in the Senate on Friday, giving the Minister of Justice the ability to issue directions to financial institutions to protect the Island's international reputation.

Attorney General and Senator Kim Wilson said that the legislation was the result of dialogue between the UK and its overseas territories designed to ensure that they could not be used as a back door for illegal activities.

The Government will now be able to set various requirements which could force firms to avoid activities with businesses or nations connected to money laundering, terrorist financing or the proliferation of chemical, biological, radiological or nuclear weapons.

The requirements Government can set include increased customer diligence, constant monitoring of transactions, systematic reporting of activities or forcing the company not to enter into business with designated people.

Any restrictions set by the Minister will last one year by default, but that can be changed at the minister's behest.

Sen. Wilson said that decisions to block business with certain parties would be based on advice from the United Nations, the International Monetary Authority and the Inter-Governmental Financial Action Team Task Force on money laundering.

While the Minister has the option of ignoring advice, the Senator said she could not imagine a scenario where that would happen.

"We have already received information from the UN for a country that has been struck off. A company involved has a satellite here in Bermuda," she said.

"We want to do everything possible to make sure our reputation is intact, and we want to do our share in protecting the world from money laundering and terrorism."