Government's Financial Secretary is warning businesses to be vigilant against money laundering criminals.

And he believes that regulated institutions such as banks, deposit companies, trust companies and insurance companies will have to train up their staff in new procedures in order to prevent Bermuda becoming a haven for dodgy dealers.

Speaking to Hamilton Rotarians yesterday, Peter Hardy said: "Fundamentally, regulated institutions have a duty to be constantly vigilant in deterring criminals from making use of them for the purpose of money laundering.

"They are required to avoid assisting the process of money laundering and to react to possible attempts at being used for that purpose.

"There are four key elements that compromise the duty of vigilance. Regulated institutions must put in place procedures which enable them to determine or receive conformation of the true identity of customers requesting their services.

"Regulated institutions must retain the records relating to the identification of customers and training must be given to all relevant employees in the recognition and handling of suspicious transactions.

"Institutions must also introduce and maintain internal reporting procedures that enable reports of suspicious transactions to be made when such transactions are recognised. This includes the appointment of an internal reporting officer to whom the reports of suspicious activity are made.

"While not included under the definition of regulated institutions, retail outlets should be wary of customers buying high value items such as expensive jewellery or motor vehicles which are paid for by cash. Their employees should be sensitised accordingly.'' Mr. Hardy went on to explain how Government was preparing for an inspection by a team from the Caribbean Financial Action Task Force later this year.

The team will be examining just how far Bermuda is in compliance with the terms of the Vienna Convention, an international agreement designed to stamp out money laundering and drug trafficking.

"The recent passage of the Proceeds of Crime Act caused the Bermuda committee to be established in law,'' Mr. Hardy said.

"The committee has been busy since January preparing answers to questions that have been asked in advance of the visit by the CFATF evaluators. The next step will be to prepare a schedule of private sector representatives and members of the Government and civil service for the evaluators to meet when they arrive.

"So how is Bermuda likely to fare when the CFATF evaluators arrive? We cannot say for certain but the recent passage of the Proceeds of Crime Act will demonstrate our commitment to upholding the already high standards Bermuda is acknowledged to have as an offshore financial centre.'' CRIME CRM