A series of measures to crack down on money laundering and international terrorism received cross-party support in the House of Assembly last night.

The 2007 Proceeds of Crime Amendment Bill, the Criminal Justice (International Cooperation) (Bermuda) Amendment Bill, and Financial Intelligence Agency Bill were passed by MPs on their second reading.

The Proceeds of Crime Amendment Bill 2007 tightens up the monitoring of financial transactions, extending the scope of jurisdiction to accountants, lawyers and other professionals.

They will now be responsible for reporting any suspicions of money-laundering by clients, and will no longer be able to shield them through ‘client confidentiality’.

The bill extends the use of production orders and search warrants into customer information orders and the freezing of funds for up to a week, under order of a magistrate. Failure to comply will bring a penalty of $50,000, while making a false statement means a $100,000 fine.

Not only will the law cover bank savings, security accounts and other financial transactions, but also the buying and selling of real estate.

After presenting the bill, Junior Justice Minister Michael Scott said: “Terrorism financing is a reality that has been cast upon us since 9/11 and the Iraq War, that even as a small nation we have the responsibility to be watchful and to monitor those who would seek to use funding to finance terrorism.

“Bermuda had little to do with the process of flying planes into buildings and the knock-on effect of the invasion of Iraq and persons strapping bombs to themselves, and other acts of terrorism which are a fact of the 21st century. However, we take responsibility as a country of the global community, in which we could essentially become a pawn in the passage of funding for drugs and terrorist processes. We take our responsibility with these legislations today, to stamp it out.”

Shadow Justice Minister John Barritt said: “This is a bill which is going to meet with the support of the Opposition.

“Bermuda is not a place where money launderers and those of the proceeds of crime will come to as a first choice. Nonetheless, we have to be a member of the global community, to do our part as part of the international global regulations of international finance.”

However he said he hoped the new regulations would not be to the detriment of smaller businesses.

“We have to get the balance right. We have to be careful we don’t place a heavy burden on the smaller businesses in our community. One hopes there will be a differentiation between the larger businesses and the smaller ones, because they might not be able to meet the requirements of the larger firms.

“We support these changes but one hopes that we maintain a sense of fairness as we go forward and that we find a Bermuda solution, one that works for us and meets the requirements of the outside world.”>

Cole Simons, Shadow Environment Minister<$>, said Bermuda had a “sterling” reputation in the financial world, but added: “We need to keep up with the times as the criminal element is getting more and more sophisticated.”

Finance Minister Paula Cox$> said: “The credibility and integrity of our financial institutions are paramount to our reputation. It is important that we continue to have exacting standards.

“As Bermuda becomes more successful more is going to be expected of it. Certainly people should be banishing from our lingo the concept of light touch regulation.”

MPs also passed the Criminal Justice (International Cooperation) (Bermuda) Amendment Bill, which allows for the search and seizure of evidence required for foreign criminal proceedings.

The Attorney General will approve such action following a request from an overseas court, tribunal or authority, and a magistrate will then issue a search warrant by Police application.

Speaking after the introduction of the Second Reading of the Criminal Justice (International Cooperation) ( Bermuda) Amendment Act 2007, Mr. Barritt said the opposition supported the Bill.

However, he said concern was raised by the role of the Attorney General in the bill, who is given the power to administer a warrant.

Mr. Barritt said when the original Act was passed in 1994, the Attorney General was not a politically-elected position, but when that changed, the powers of the Attorney General were given to the Director of Public Prosecutions (DPP).

The DPP does not answer to another authority and therefore maintains an independence, the Attorney General can not, according to Mr. Barritt.

He said: “When the Attorney General was involved I want to know why we find the Attorney General in the amendment? I thought it was changed but if it was not then it needs to. It needs to be in the hands of the Director of Public Prosecutions.

And Shadow Education Minister Grant Gibbo<$>added: “The Attorney General would be exposed to political pressure in the Cabinet and if the original Act has not been amended we need not to just amend this one, but also the original to refer to the DPP because it is a criminal issue.”

In response to the questions from the opposition to the independence of a politically elected Attorney General, Mr. Scott said it was a policy decision.

“The Attorney General inclusion in the International Cooperation Act occurs in a number of places and for policy and good reason. The Attorney General is responsible for international cooperation as it should not be the DPP,” Mr. Scott said.

“That is not a point that is taken by the Government or myself on this for matters of international cooperation and has been for many years.

“And the process is much more administrative then prosecutorial.” The Bill was then passed.

The third piece of legislation passed last night, concerned a new justice body the Financial Intelligence Agency (FIA), which will gather and analyse reports of suspicious activity.

Under the Financial Intelligence Agency Act 2007, the FIA will be able to freeze funds for up to three days, by serving a notice on the relevant institution. It can also serve notice for information on any person, under penalty of $10,000 or six months in jail for non-compliance. Information will then be passed on to the Bermuda Police Service or authorities overseas.

The independent FIA will have a board of directors appointed by the Minister of Justice.

However, Mr. Scott said the FIA should not be confused with the Financial Investigations Unit (FIU).

Whereas the FIU can investigate, collect evidence and prosecute, the new intelligence agency is an organisation that will receive confidential reports from financial institutions and look into them to see if there is something that requires the FIU to become involved and investigate.

With this second step, Mr. Scott said the new body would reassure financial institutions facing problematic transactions or relationship they wish to investigate, but fear contacting local authorities for fear of false accusations.

Mr. Scott added by limiting the investigations of these bodies to money laundering and funding terrorism, further assured the financial institutions.

After the Opposition raised concerns about the independence of the executive board, which will have to follow the Minister of Justice’s guidelines, the bill was passed.