world centre for money laundering.

Canadian author, Mr. Lee Lamothe, said the Island was targeted for illegal trade in cash, although he said it was not yet a major centre.

However, the Hon. David Saul said Bermuda followed internationally recognised rules and regulations and its banking businesses were renowned throughout the world for their honesty.

Bermuda, he said, had a strict screening process requiring a 100 percent "know your client'' rule and information about company ownership had to be provided to the Bermuda Monetary Authority.

Codes of Conduct had been produced and Bermuda was an active member of two major organisations both endorsing anti-monetary laundering legislation. In addition, the Minister added, The Model Act dealing with anti-money laundering proposals is being considered by Bermuda's anti-money laundering committee.

Mr. Lamothe, author of Global Mafia: The New World Order of Organised Crime and a regular Bermuda visitor, claimed that the Royal Canadian Mounted Police had once investigated money coming into the Island.

Dr. Saul added: "Bermuda has a very high reputation for probity among offshore centres which we cannot afford to let slip and we are taking, and will take, the necessary measures to maintain that reputation.''