The United States and Bermuda will team up to crack down on money launderers, drug traffickers and terrorists under a new treaty which is being finalised.

Finance Minister Paula Cox yesterday announced negotiations over the Mutual Legal Assistance Treaty have now been completed in a move she hopes will strengthen the Island's appeal as a leading centre of international business.

Ms Cox said a few procedural matters need to be resolved and the MLAT will be signed early in the New Year at a ceremony in Bermuda.

"The MLAT is designed to improve the effectiveness of the law enforcement authorities of both the United States and Bermuda in the investigation, prosecution and prevention of crime through co-operation and mutual legal assistance in criminal matters," the Minister and Acting Premier told the House of Assembly.

"The MLAT is one of a series of modern mutual legal assistance treaties being negotiated by the United States in order to counter criminal activities more effectively.

"The MLAT should be an effective tool to assist in the prosecution of a wide variety of crimes, including drug trafficking, money laundering and terrorism offences.

"By signing the MLAT, the Government of Bermuda further demonstrates and enhances its reputation for not tolerating use of Bermuda vehicles for criminal activity and supports co-operation where there are allegations of tax fraud."

Ms Cox said she was confident the signing of the MLAT would be noted by key people in Washington, DC. "Our contacts will ensure that the imminent signing of the US/Bermuda MLAT is brought to the attention of Bermuda's friends and supporters on Capitol Hill," she said.

"We have seen recently that many jurisdictions with similar qualities to Bermuda are vying for existing and new business in these uncertain times.

"Each jurisdiction will experience gains as well as losses. However, in Bermuda's case, coming on the heels of recent successes in the negotiation of Tax Information Exchange Agreements with OECD (Organisation for Economic Co-Operation and Development) member countries, the signing of this important treaty with the United States of America will add to Bermuda's attraction as a premier jurisdiction for international business."