independence.

For a new bill aims to bring the Bermuda Monetary Authority into line with international recommendations that it should enjoy more freedom to carry out its regulatory role -- and proposes bigger penalties for offenders.

Fines for summary offenders against the Island's financial regulations are set to rocket from $720 to $10,000, while retaining an option of six months in jail.

And a new category of indictable offences allows for fines of up to $25,000 and/or two years in prison.

The BMA will also no longer have to seek permission from the Minister of Finance before setting up committees to advise it.

And -- if passed -- the bill would extend the immunity of BMA officials to "acts done in the performance of their functions under other Acts of the Legislature''.

A requirement to keep a reserve of local assets, including treasury bills or securities issued by the Government would also be removed.

And the original Act extends the powers of the BMA by removing the terms "bank'' and "deposit company'' and substituting the broader term "institution.'' Finance Minister Eugene Cox said: "This is really to bring the Act up to date because the BMA has to regulate and oversee the investment bill and deposit taking bill which were introduced in 1998.

BMA set to get more teeth "It's been driven by new legislation which is coming up and international regulatory authorities.

"The bill gives us the opportunity to demonstrate that the BMA is becoming the regulatory authority, gives it greater teeth and makes sure it can deal with the new legislation which is coming on board.

"It's significant in that it gives the Authority a greater separation of powers.'' But Mr. Cox said: "It's not diminishing the Minister's powers in any way -- it's just bringing them up to date so they can do the prudential vetting they are required to do.

"We don't want the Minister's role to be blurred -- in the past the Minister gave licences to operate.

"If you have a body granting licences, the Minister shouldn't be able to override that.'' He added: "This bill will prepare the BMA for the 21st century so it can really be an independent body, but still subject to the policies of Government.'' He said that fines available for white-collar crime had not been upped for a long time and were overdue an increase.

Mr. Cox added: "The fines haven't been increased for donkey's years and they're really well out of step.'' MPs are expected to debate the BMA Amendment Act 1999 in two weeks' time.

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