control for expediency'' with the proposed changes to the Companies Act 1981 has been dismissed by Finance Minister Grant Gibbons.

The claim is in an article in Miami-based newsletter, Offshore Alert, which said the amendment removes "a key provision...that helps to stop undesirables from setting up on the Island.'' The unique provision required those seeking to incorporate international companies in Bermuda to advertise that intention in a local newspaper.

The article said the provision was part of the process that stopped the criminal element from choosing Bermuda as their offshore centre, and its removal "will inevitably lead to less scrutiny of applications, because far fewer people will be aware of them.'' Finance Minister Dr. Grant Gibbons rebutted: "It really is not a valid criticism at all. It is not fair to say that. There's been a long history of evolution of incorporation procedures in Bermuda.'' He said the advertising provision was a carry-over from the days more than three decades ago when companies were incorporated by private bills.

Dr. Gibbons noted that he could recall no instance where an advertisement for an exempted company incorporation led to a response from the public which impacted on the application. In fact, he said, such responses from the public to the international company advertising were rare.

And while the legislative amendments sought to streamline the process for international companies incorporating here, care was being taken to ensure that the vetting by the Bermuda Monetary Authority and the Insurance Advisory Committee was maintained.

The Minister said, "If we need to, we will enhance those regulatory checks in the future. But we have another form of control over this process and that is the Proceeds of Crime Act.'' The Minister said that contrary to the position taken in the article, there was probably more vetting of international companies incorporating in Bermuda.

Dr. Gibbons also stated: "There seems to be an implication in that article that Bermuda, which has always emphasised the quality of our international companies over quantity, was now going for quantity. But that is not true.

"We just continue to look at the need to streamline the incorporation process. There is no change in our approach to continue to concentrate on quality, as opposed to quantity.'' House debate on Companies Act: Page 5 Grant Gibbons BUSINESS BUC