A bill to further tighten up Bermuda's anti-money laundering measures was passed with all-party support in the House on Friday.

The Proceeds of Crime Amendment Bill 2008 will enable the courts to confiscate items used in money laundering offences.

Introducing the act Junior Minister of Justice Michael Scott said: "This bill will further enhance Bermuda's well deserved reputation as a financial jurisdiction of choice."

The amendment will widen the original act to include measures to clamp down on people who launder their own money as well as those who launder other people's.

Whistleblowers will be protected from claims they breached any duty of confidentiality.

The bill widens the functions of the National Anti-Money Laundering Committee by giving it the task of developing a national plan of action and coordinating various authorities.

An independent chairperson, appointed by the Minister of Justice, will liaise between Government and industry, said Mr. Scott.

The Minister of Justice will now have joint responsibility with the Finance Minister on the disbursement of the confiscated assets fund.

Finance Minister Paula Cox said the bill was probably the most substantive in a trilogy of legislation designed to tighten regulatory standards in this area. She added: "We don't want to adopt regulations blindly or unthinkingly. You want to make sure that people have a comfort level."

Over-regulation would make Bermuda uncompetitive said Ms Cox who added that there were plenty of jurisdictions envious of the Island's successes in the financial sector.

She said a critical IMF report on money laundering had sparked cooperation between a holy trinity of Government, regulators and the private sector to come up with proposals to focus on the public good.

Opposition deputy leader Cole Simons said there was a need for an official body for Bermuda's growing band of compliance officers who he said worked to varying standards of strictness.

Mr. Simons, who works for the Bank of Bermuda, said he dealt with one law firm who had referred a client without knowing how they made their money.

Opposition whip John Barritt welcomed the legislation but again made a plea for Government to make it easier for MPs and the public to understand amendments to a bill by incorporating them into the main act for easy reference.

And he said the Government's website had two copies of the original Proceeds of Crime Act with out-of-date sections.

Mr. Barritt also raised concerns about the issue of 'neglect', in that someone such as a financial institution employee, could face criminal prosecution just for making an unintentional error.

Mr. Simons meanwhile, called for a banking representative to be appointed to the anti-money laundering committee.

Mr. Scott said the Bermuda Monetary Authority (BMA) had "that responsibility to make guidelines" but said Government would take Mr. Simons's recommendation into account.

"We will take under advisement the offer of extending the membership of representation to banking," said Mr. Scott.

The Bill was approved in the House of Assembly without amendment.