A still-classified International Monetary Fund report on Bermuda's ability to tackle anti-money laundering and combat the financing of terrorism does not conclude that Bermuda is a jurisdiction at risk, according to Finance Minister Paula Cox.

But she has hinted that a problem for the Island may lie outside Government and with both regulated and private financial institutes on the Island not fully meeting their responsibilities when it comes to stamping out illegal financial practices.

Ms Cox made the assertion in response to reports in the Mid Ocean News last Friday, and repeated by Opposition Finance Minister Pat Gordon-Pamplin at the weekend, that the IMF has prepared a scathing report on the Islands AML/CFT regime.

The international organisation carried out a review of the Island in May and has sent a draft copy of its report to the Finance Ministry. The contents of the draft remain out of the public realm.

However, last week Finance Secretary Donald Scott released guarded comments that suggested there were a number of worrying findings within the report. Government has sent a response to the Washington DC-based IMF requesting further details be considered before the final report is concluded and made public.

The contents of the draft report are not known, but a behind-closed-doors discussion was held between Government and a selection of business stakeholders on September 12. The Finance Ministry believes that an attendee at that meeting "breached confidentiality protocol" and spoke about the contents of the report.

Although lacking any specifics, last Friday's Mid Ocean News report claimed the IMF has made150 recommendations for Bermuda and has failed the Island in eight out of nine regulatory areas. The newspaper also said Bermuda was in danger of being "black-listed" by the IMF and was now rated below the likes of Panama for regulation compliance.

The IMF report is not a public document. The Royal Gazette is awaiting a response from the IMF regarding the claims.

Late yesterday Ms Cox said: "Bermuda was amongst the first island jurisdictions to be reviewed. Accordingly, in the absence of the report having been finalised and released by the IMF it is most inappropriate and irresponsible for us to comment at any level in detail....and tip our hand to the detriment of national economic interest."

She said the report would be made public when formally released by the IMF.

When asked directly about whether 150 recommendations have been made by the IMF, or whether Bermuda has failed in eight out of nine regulatory areas - as claimed by last week's newspaper article - the Finance Ministry did not comment.

Ms Cox said: "The IMF assessment is not a grading exercise; rather it is an opportunity to determine how to tackle more effectively the serious issues related to money laundering and terrorist financing and the consequential adjustments which must be made to our national regime.

"Notwithstanding, Bermuda remains a well recognised jurisdiction known for its sound business and regulatory practices.

"Even though the report has not been finalised, it does not conclude that Bermuda is a jurisdiction at risk."

Giving an indication that some deficiencies have been found within the Island's private sector, the Finance Minister said: "Clearly there is going to be a requirement, separate and apart from the legislative framework that is already in place, for the regulated institutions and others to demonstrate they have adequate controls and safeguards in place and working effectively.

"Also processes and implementation have to be driven by stakeholder including the wider private sector.

"Therefore, in addition to the financial institutions, more is going to be required across the board by all. That is the challenge: that those who are in the business do the right things and show they have real controls in place. Talk is cheap and if there has been one issue signaled in the draft report it is that Government can do so much re the legislative framework but there is a tremendous amount of work that has to be done on the ground to breathe life into the anti-money laundering controls and processes.

"Though there may be some bleating the one issue that will not be compromised is the need for action."