relationship with its colonies won't have much of an impact on international business on the Island, according to a letter to shareholders.

The letter was jointly signed by chairman of the board Eldon Trimingham and president and chief executive Henry Smith.

"Some points remain to be clarified but the bank believes that Bermuda will be able to satisfy Britain on the issues of prime importance,'' the two stated.

Key to falling in line with the UK proposals will be the need to bring Bermuda's legislation on money laundering to include fiscal offences, they stated. "Our view is that such a move may be inevitable as similar standards are applied in other influential jurisdictions,'' they wrote. "Other concerns raised by the paper have either already been addressed in Bermuda or will be largely covered by planned new legislation.'' The letter was included as part of the presentation of the company's third quarter results, which have already been reported in the media. The bank had earnings per share of $1.06 to March 31, up 51 percent from the previous quarter, and an increase of 39 percent on third quarter 1998.

Mr. Trimingham and Mr. Smith also said the bank's treasury section was moving toward round-the clock foreign exchange service using offices in Bermuda, Luxembourg and Hong Kong.