The International Monetary Fund has made a number of suggestions to improve Bermuda's regulatory and supervisory framework.

The IMF recently visited the Island to assess the strengths and weaknesses of Bermuda's regulatory system including the anti-money laundering framework and enforcement provisions.

Acting Finance Minister Paula Cox said: "The Fund presented its two-volume draft report at a wrap-up session on 28th March 2003. It will be some months yet before the report is finalised. At this juncture, I can say that the IMF team was impressed with many aspects of Bermuda's regulatory and supervisory arrangements. Inevitably, there are always recommendations for further strengthening and enhancement of certain aspects of the regulatory and supervisory framework. The IMF has made a number of such suggestions.

"Government will carefully review the detailed report and assess the recommendations before making any further comment.

"Government wishes to thank those representatives of the financial services sector who put aside other important work to meet with the IMF team during the past two weeks.

"The meetings helped to clarify the structure and dynamics of this important sector for the members of the IMF team and facilitated their work."

The IMF is hopeful that the report can be finalised by the end of June. In the interim, the Bermuda Monetary Authority and the Ministry of Finance will continue discussions with the IMF as part of the process to complete the report.

The IMF is currently carrying out assessments of offshore financial centres which gauge the observance of internationally accepted principles and standards of regulation and supervision including:

Basel Core Principles for Effective Banking Supervision; Insurance Supervisory Principles - International Association of Insurance Supervisors; IOSCO Objectives and Principles of Securities Regulation; and Financial Action Task Force Recommendations for Anti-Money Laundering and Combating Financing of Terrorism.