the threat of being put on the OECD blacklist, according to BMA chairman, Cheryl-Ann Lister. Mairi Mallon reports.

Bermuda has kept ahead of its offshore competitors by constantly reviewing the way it does business, according to the Island's top financial woman.

And the Bermuda Monetary Authority has had to take on extra staff to deal with a flood of forms and meetings in the past 18 months, according to Cheryl-Ann Lister, Chairman of the Bermuda Monetary Authority.

Speaking at a meeting of Women in International Trade last week, Mrs. Lister listed the half a dozen international bodies that have been scrutinising the way Bermuda does business, and the pre-emptive measures taken by the Island to stay ahead of the game. And she added that the Island had done such a good job that now it was considered a leading financial jurisdiction around the world.

She added: "We are not a quality offshore financial jurisdiction, but a quality financial jurisdiction.'' In the last 18 months the Island has been fighting off attacks on its good name from some of the most powerful nations in the world. The G7, the International Monetary Fund and the Organisation for Economic Cooperation and Development are just some of the governing bodies looking at money laundering and unfavourable tax practices.

Overall, the Island seems to have come out with a clean bill of health and got good marks from the Caribbean Financial Action Task Force, got left off the OECD's black list of tax havens, omitted from the Financial Action Task Force list of "problem countries'', and it now looks as if the Island will get a good report from a review of Bermuda and five other overseas territories by KPMG on behalf of the Foreign Commonwealth Office.

The only one Bermuda did not do so well on was with the Financial Stability Forum, who placed the Island in group 2 (out of three). This ruling is currently being contested.

And the burden of the red tape involved with these organisations demands has fallen hard on the Bermuda Monetary Authority.

Mrs. Lister said: "The past 12 months have been particularly busy, with a number of important changes implemented and having to take time to participate in the various reviews and meetings associated with these reviews.'' Mrs. Lister said deficiencies found in the Trust Companies Act 1991 and the Investment Business Act had now been addressed.

And she said the Proceeds of Crime Act 2000, which was passed earlier this year, would soon come into effect.

Island ahead of the game It follows international best practice and addresses criminal tax evasion and gives the BMA more teeth to deal with problems.

And the Banks and Deposit Companies Act 1999 gives the BMA the responsibility of licensing and supervising deposit taking institutions as well as making sure they comply with international standards.

The Electronic Transactions Act 1999 adds weight to clean practices claims by creating a legal framework for e-commerce in Bermuda.

She added: "Over the past few years Bermuda has made substantial progress in reviewing its financial services legislation in order to bring it up to date and to ensure it meets international standards.'' Mrs. Lister added that the BMA had taken on staff in the past year to help deal with the extra work, and would be taking on a further three staff in the near future.

She added at the end of her speech: "Bermuda remains committed to ensuring that it maintains an appropriate framework of robust supervision and regulation. To achieve this on a continuing basis, Bermuda keeps its legislative and regulatory regime under regular review and makes sure that international developments are taken into account.''