regulations sailed through the House of Assembly on Friday night.

The Taxes Management Amendment Act, the Proceeds of Crime Amendment Act and the USA-Bermuda Tax Convention Amendment Act 1999 had all raised concerns in the business community that they would hurt financial service companies based on the Island. But last minute amendments appeared to satisfy most concerns.

Finance Minister Eugene Cox said the Proceeds of Crime Amendment Act was aimed at more closely defining different forms of money-laundering and also makes tax evasion an offence under the legislation.

Under the Act, people charged with or convicted of tax evasion overseas may find their Bermuda investment accounts, trusts, companies, and bank accounts open to investigation.

In replying to the bill, Shadow Finance Minister Grant Gibbons said the thrust of the 1997 Act was to separate criminals from the economic proceeds of their crimes.

He highlighted the difference between tax avoidance which is legal and tax evasion which is not. He mentioned the guidance notes, which are currently being drafted, would assist in determining the difference.

Dr. Gibbons said that the president of a Cayman bank had recently been in the press for being associated with tax evasion and that it was obviously of paramount importance that such things did not occur in Bermuda.

He indicated the UBP firmly supported the proposed bill.

The bill which was passed introduces new definitions of the kinds of offences falling within the parent Act.

It also states that a court, in determining whether an offence has been committed must take account of the guidance notes issued by the National Anti-Money Laundering Committee which is comprised of industry members and personnel from various Ministries.

The Act will not take effect until January 2000 at the earliest.

Earlier, the related Taxes Management Amendment Act were also passed.

MPs also passed the USA-Bermuda Tax Convention Amendment Act 1999.

Mr. Cox explained the principal Act pertained to the provision of information between the two countries pertaining to the evasion of taxes.

The US Department of the Treasury routinely requests information from the Bermuda Government about US undertakings particularly insurance companies.

The amendment requires such requests for information to stipulate that the information is required to determine the tax liability of an individual.

Dr. Gibbons said the treaty had permitted businesses to do their tax planning with certainty and that this had helped the insurance business in Bermuda to grow which was of benefit to Bermuda.

The bill was then carried.