Finance Minister Paula Cox and Attorney General Sen. Kim Wilson last night defended Bermuda's reputation on money laundering, citing our longstanding policy of "knowing the customer".

They were responding to the publication of comments of the House of Commons' Committee of Public Accounts chairman Conservative Edward Leigh in which he described the Island's record of tackling money laundering and tightening compliance in the International Business sector as "appalling".

Bermuda "must and will continue to demonstrate our commitment to improving our national system for combating money laundering and terrorist financing" Ms Cox said from RIMS in San Diego.

"This was a realisation of this Government even before the International Monetary Fund's assessment (of Bermuda)," she explained, adding that the IMF had later monitored Bermuda's progress and even "highlighted areas where even more accelerate action was required".

Ms Cox continued that passage of the Proceeds of Crime Act, the Criminal Justice International Cooperation and Financial Intelligence Unit were examples of Government's compliance.

"Armed with the enactment of such critical legislation, Bermuda proceeded to set out a roadmap for action in a realistic time-frame in consultation with the private sector."

Ms Cox highlighted that our Financial Intelligence Unit is a "longstanding" member of the Egmont Group of financial intelligence units and that the Island hosted last year's annual plenary meeting, where the Group was formalised.

"Another key point is that the IMF recognised that our incorporation process was so tightly controlled that this factor alone minimised any concerns about the abuse of corporate vehicles by criminals," Ms Cox said.

Noting that the IMF is "raising the bar" worldwide, Ms Cox said that Bermuda – like other jurisdictions – will "have a number of areas to address over time".

Ms Cox concluded: "Overall, the various recommendations made by the IMF for further enhancements to the Anti-Money Laundering regulatory framework provide helpful input to our own ongoing, routine review of Bermuda's provisions.

"And it is gratifying to note that during informal discussions held last month with Sir James Sassoon, he signalled an acknowledgement of the work done to date and that continues."

Attorney General Wilson – in a detailed response – said Bermuda's objective has always been to "maintain oversight arrangements that are transparent, consistent with international standards, suited to the risk profile of our industries and effective in encouraging prudent conduct and high standards of corporate behaviour".

"Bermuda's reputation as a quality international financial centre is well deserved and reflects in part our strong and well-established Know Your Customer policies and an appropriate, risk based regulatory regime."

Ms Wilson explained the Island had signed on customers on a "case-by-case" decision "long before formal controls were put in place globally".

"Our vetting processes have been rigorous and we have remained ever mindful about the quality of the business being conducted from or within Bermuda, preferring quality over quantity.

Ms Wilson continued: "Clearly, it is this long-standing, collective commitment to quality that has contributed to Bermuda's success, with very few instances in which companies have subsequently proved to be unsound or of dubious standing. Indeed, the public and private sector focus on quality remains one of the key attractions of this jurisdiction."

Ms Wilson concluded: "The Bermuda authorities, Government and regulatory agencies, recognise that in order to protect the jurisdiction's reputation, we must and will continue to demonstrate our commitment to improving our national system for combating money laundering and terrorist financing.

"This commitment is demonstrated not only by way of legislation which specifically covers anti-money laundering but also by way of entering into Mutual Legal Assistance Agreements as is currently underway with the United States of America."