Government's loss may be a coup for the private sector with the announcement yesterday that Assistant Financial Secretary Ifor Hughes is leaving his post to take over as the Bank of Bermuda's head of compliance.

Mr. Hughes, who in his Government role has overseen the international business sector, is however no stranger to the bank having worked there for 13 years prior to joining the Finance Ministry in 1997.

In his job at the Ministry, Mr. Hughes was responsible for developing and managing Government's legislative and policy agenda in the area of international business and conducting economic diplomacy on behalf of Government in relation to international tax and regulatory initiatives.

At the bank Mr. Hughes will be replacing Barry Shailer who retired earlier this year.

Mr. Shailer, an Englishman married to a Bermudian, was the first head of compliance for the Island's largest bank.

Mr. Hughes will be only the second head of compliance for the bank, and the first Bermudian to hold that spot.

The bank, in a press statement issued yesterday, said Mr. Hughes brought valuable regulatory experience to his new post with the expertise he has gained at the Ministry.

Mr. Hughes, who assumes his new position in early October, could not be contacted yesterday as he was off the Island.

He is the son of Senator Walwyn Hughes and in working at the Finance Ministry had been following in the footsteps of his father as former financial secretary.

Mr. Hughes first worked for the Bank of Bermuda in 1982 after graduating from the University of North Carolina with a bachelor of science (BSc) degree in business administration.

After three years with the bank Mr. Hughes went back to school gaining an MBA from the University of Western Ontario. In 1987, he returned to the bank and took up a job in the bank's global custody area.

Chief operating officer for the bank Philip Butterfield welcomed Mr. Hughes back to the bank and added: "Along with Mr. Hughes' solid understanding of the bank, his regulatory-related experience gained at the Ministry of Finance makes him ideally suited to continue the development of the vital role played by compliance throughout the bank's global network."

The Ministry of Finance was contacted yesterday for comment on Mr. Hughes' departure but there had been no response by press time.