The role of the Bermuda Monetary Authority (BMA) in the fight against anti-money laundering and combating the financing of terrorism has been called into question by a leading accountant.

Following the release of the International Monetary Fund's assessment report on anti-money laundering and combating the financing of terrorism in Bermuda, Mike Hardy, an FCA who has been an auditor, accountant and manager of a number of insurance and reinsurance companies on the Island over the past 25 years, spoke out.

The IMF report stated that 'the BMA has a wide array of formal sanctioning powers available to it, but has never imposed them against a financial institution for a deficiency or violation of anti-money laundering/combating the financing of terrorism'.

But the BMA insists it continues to maintain a close working relationship with the police to combat financial crime.

Mr. Hardy said that the findings, which appear in section five of the executive summary, are proof that the BMA is not doing its job properly in terms of tackling finance-related crime.

"That alone is a condemnation that the BMA is not doing its job in meeting its goals and I spoke to William Kattan (director of legal services and enforcement) and he still insists that they are working with the Police, but it is still there as a key finding," he said.

"It seems like they are turning a blind eye to it.

"Suspicious activity reports going to the police and it does not mention the BMA. Nothing has been done — that is how you read this report and this is just part of it."

And he is worried that complacency over the matter will only serve to tarnish Bermuda's reputation.

"It seems complacency is getting Bermuda into trouble and giving it a bad name," he said.

"They (the BMA) don't follow their own laws, never mind expecting others to follow their own. I just think it is a regulatory problem."

The BMA said it will, as warranted, notify the police about any suspicion of criminal activity it may discover in the course of its regulatory duties, and has done so in the past in the form of submitting suspicious activity reports, as required by law.

"Investigating and gathering evidence for a criminal prosecution remains primarily a matter for the Police Service, with the co-operation and assistance of the Authority," a spokesperson said.

"As announced recently, the Bermuda authorities are working towards enhancing Bermuda's anti-money laundering regime. The Authority looks forward to the implementation of its enhanced powers with respect to anti-money laundering and combating the financing of terrorism, which will result in the BMA assuming responsibility for both compliance and enforcement of the Proceeds of Crime regulations."