Legislation barring terrorists from disguising their assets in local financial institutions was passed in the Senate on Monday.

The Anti-Terrorism (Financial and Other Measures) Act 2004 defines terrorism and terrorist property, provides for account monitoring, and holds employees of institutions accountable if they do not report when they suspect terrorist activity is ongoing.

The bill emphasises "Government's zero-tolerance stance towards financial irregularities of any nature," Government Sen. Reginald Burrows said.

The extra layer of protection should enhance Bermuda's reputation as a domicile of choice, he added.

Concerns raised by the Opposition when the bill was passed in the House of Assembly about a lack of consultation in the business community were a "red herring", he added.

Discussions about such a move were first initiated in regards to the Proceeds of Crime Act, though it was later decided to create this specific legislation separate from that Act.

The business community, Sen. Burrows said, has known this was coming for about two years. The International Monetary Fund recommended that Bermuda enact its own legislation to strengthen anti-money laundering framework and reach international benchmark standards rather than rely on a UN Resolution implemented by the United Kingdom.

Additional recommendations were also made by the Organisation for Economic Co-operation and Development.

Opposition Sen. Bob Richards expressed concerns about the requirement for employees and officers of financial institutions to report any suspicions, wondering how that requirement extended to legal advisers of such institutions bound by privilege.

Sen. Burrows replied that lawyers are not exempt under the Act. Opposition Sen. Kenny Bascome also called for an upgrade of Bermuda's internal security alongside the bill, which passed unopposed.