Senators yesterday approved a bill which strengthens the ability of the Bermuda Monetary Authority to regulate the Island?s financial service sector.

The purpose of the bill, entitled Bermuda Monetary Authority Amendment Act 2004, was to set a definition of financial crime. The bill also changed the time for submission of the BMA?s budget from four months to two months before the end of the financial year. The bill outlines how the board of the BMA will appoint an auditor with the approval of the Minister. The BMA accounts will be audited annually by the auditor.

During the session Senators emphasised the need for the Island?s business community to be alert to the risk of white-collar crime. The Senators hope that fine tuning the provisions will demonstrate to the local and international business community that the BMA is functioning effectively as an independent regulator.

During the discussion Senators also highlighted how talk about Bermuda as a tax haven by people looking to score political points made it necessary for the BMA to become a regulator of the industry.

The Act was read by Senator (PLP) who pointed out that Bermuda?s dependence on international business means powerful countries will be looking very closely at Bermuda to ensure the Island?s financial institutions are regulated. ?Our stability comes from large and well-known companies which places a great need on the authority (BMA) to function as an independent regulator,? he said.

Opposition Senate Leader said Bermuda needed to do everything to preserve its reputation in the world of finance.

?It is important to appreciate that larger companies are competitors who look enviously at our shores,? said Mr. Swan. ?We need to jealously guard our reputation in the world of finance to other jurisdictions who may be looking to knock us down a peg or two.?

President of the Senate (Ind) said the role of the BMA in regulating the financial services sector was particularly important since Bermuda did not have a sophisticated white collar crime unit, and this division of the Police service is under-manned and under-staffed.

Senator (UBP) also added that Bermuda has a burden of responsibility to ensure that Bermuda protects its reputation on the world stage especially with news reports coming out of the United States. ?We can?t take for granted anymore that everyone is acting in good faith,? he said.

The Senate session also ended with an emotional speech by Senator (UBP) calling on Government to address the housing crisis. Mr. Bascome knows of a family living in the Sandhurst apartments in St. George?s which were split up after Hurricane Fabian destroyed their apartment last September.

The Bermuda Housing Corporation owns the apartments and was responsible for cleaning up the extensive ceiling and roof damage suffered by the family, but Mr. Bascome says the young man, who is the father of two young girls, calls him every morning desperate for a home where he can raise his family together. ?He called the Minister and the Minister said he couldn?t do anything to help him,? said Mr. Bascome. ?I?ve been encouraging him not to think negatively but it is the responsibility for the Minister and the housing corporation to expedite the renovations.?