Bermuda will now have its own domestic anti-terrorism legislation to prevent terrorists from burying their assets in local financial institutions.

The Anti-Terrorism (Financial and Other Measures Act) 2004 was passed by MPs on Friday.

The legislation defines terrorism, terrorist property, and requires businesses to report to a Police Officer as soon as possible their belief that money is being used for terrorist purposes.

The bill was introduced in the House of Assembly as Labour and Home Affairs Minister Randy Horton highlighted the importance of protecting Bermuda?s ?sterling? reputation as a jurisdiction which runs its financial services sector at the highest possible standard.

Mr. Horton said the legislation was intended to crack down on anyone who attempts to use Bermuda as a destination of choice for tax evaders and perpetrators of other forms of illicit activity. The International Monetary Fund has recommended that Bermuda enact its own legislation to to strengthen anti-money laundering framework and reach international benchmark standards rather than rely on a UN Resolution implemented by the United Kingdom. Additional recommendations were also made by the Organisation for Economic Cooperation and Development.

The legislation was approved by both sides of the House as Government strives to keep in line with international policies which implement international recommendations that countries enact their own domestic terrorist financing legislation.

While debating the bill Shadow Finance Minister Grant Gibbons noted that Government had not consulted with several international business organisations including BIBA. ?We think it would be useful that widespread consultation be conducted by Government with the community to ensure that organisations such as banks and trusts and other companies which deal with fund related assets are aware of their responsibilities,? said Dr. Gibbons.

He added that in the UK similar legislation had increased the bulk of complaints to Police leading to a ?meltdown? as financial organisations and individuals face repercussions for not reporting their suspicions to the relevant authorities.

Shadow Labour and Home Affairs Minister Maxwell Burgess said the legislation to fight terrorism was necessary. However, he said: ?We must make sure to do it while not offending our triple A customers customers.?

Mr. Burgess added that people could go on potential witch hunts which may cause potential businesses to look to other offshore jurisdictions than Bermuda. Mr. Burgess stressed the need for widespread consultation with US business alliances to ensure businesses did not feel as if they were under siege.

Mr. Horton thanked the members for their comments.

?Bermuda?s sterling reputation as an international business and financial services jurisdiction results largely from our superior regulatory structure and our zero tolerance stance towards financial irregularity of any nature,? said Mr. Horton. ?We must remember that Bermuda?s constitutional position is such that the kind of legislation cannot simply be imposed via an Order in Council. Instead Bermuda is required to establish its own legislation in this regard.?