passed in the Senate yesterday with Senator and defence lawyer Mark Pettingill saying he had "difficulty'' with the Act's retroactive powers.

The amendment removes a clause restricting confiscation of assets to just three years and creates a special fund for confiscated money.

Sen. Pettingill questioned why Government should have unlimited powers of confiscating assets from drug proceeds back in time.

This retroactive clause "shifts the goal posts,'' he said.

Mr. Pettingill explained the way Bermuda had operated in the past was to evaluate a company thoroughly before it was allowed to operate in Bermuda.

"You're getting into a lot of trouble when you have that type of retroactive offence,'' he said. "We didn't enforce other countries fiscal laws. My concern is we now change the rules as a result of what people may have done (in the past).'' Mr. Pettingill also found the setting up of a fund strictly for confiscated drug money to be problematic -- because the amounts taken in recent years have been minuscule compared to the profits of the drug business.

"I hope this is not going to be a damp squib,'' he said. "Trying to rope in US funds from ten or 20 years ago is going to be fraught with problems -- next to impossible.'' Sen. Calvin Smith said he was afraid for innocent people who may have unwittingly handled drug money getting caught up in an investigation and the "stigma'' they might attract.

Senate Opposition Leader Maxwell Burgess approved of the Act, saying it was "a step in the right direction''.

He added: "We don't want to become the launderer of the western world.

"Let me say here and now, our offshore business may be able to ward off the suggestion there is something going on but with this fish bowl we live in the average person's not getting off that easy.'' Echoing other Senators, Sen. Burgess suggested there was a new breed of "very bright'' drug dealers who put their talents at outwitting authorities.

Government Leader in the Senate Milton Scott said "so be it'' if a business or individual had their old assets taken via the retroactive clause of the act.

Independent Senator Jeannette Cannonier said she was less concerned with the international money launderers than with locals who are trying to hide their drug trafficking.

"Where are the questions being asked?'' Mrs. Cannonier said. "Are you asking the car dealer where the money for that car came from? "We're here talking about the upper level, but I'm talking about how we need to look at the lower level. When it comes to money laundering you need to look at the pre-wash cycle.'' Mark Pettingill