regulatory process and has cited EMLICO as a case in point.

But Finance Minister Grant Gibbons has dismissed the US politician's assertions, saying he is ill-informed.

And Rep. John D. Dingell (Democrat-Michigan), in a recent edition of Business Insurance (BI), also alleged that Bermuda sought opportunities for money laundering.

It was part of an interview in which he reiterated his past criticisms of Bermuda's insurance regulatory environment.

The 71-year-old Rep. Dingell is remembered for his assault on offshore domiciles, including Bermuda, in his 1994 report "Wishful Thinking: A World View of Insurance Insolvency Regulation'' when he was chairman of the House of Representatives Oversight and Investigations subcommittee of the Committee on Energy and Commerce.

His report, which specifically focused in on the insolvency of Bermuda Fire & Marine Insurance Co. Ltd., began collecting dust that year when the Democratic Congress was swept from office by an elected Republican majority.

But now in BI, he cited EMLICO as a significant problem because it went into bankruptcy here, alleging that it moved from Massachusetts to Bermuda in 1995 to "escape US regulation and US controls.'' Bermuda was one of the jurisdictions that Mr. Dingell singled out in 1994 for "lax regulation''.

And when asked about this in the BI interview, he replied: "Let's see, I could mention Bermuda, the Cayman Islands, Turks & Caicos, and a number of other impecunious offshore islands where they're less interested in American insureds than they are in getting the necessary filing fees, and becoming offshore banking centres for things like money laundering and other things of equal interest to the United States government.'' But the Finance Minister said this week Mr. Dingell's comments seemed political, because he also criticised US state insurance regulators and talked of their inability to deal with problem insurers outside of the US.

Dr. Gibbons said, "It is worth noting that Bermuda is a participating member of the International Association of Insurance Supervisors (IAIS), where there is cooperation between state and offshore regulators.

"There are a number of situations where the IAIS has been used to protect the interests of US insureds. And Mr. Dingell may have been aware, or may have forgotten about, the provisions of the US/Bermuda Tax Treaty 1986, which also allowed for process for mutual cooperation in certain areas.

"With respect to the comment about "impecunious offshore islands'', I don't think I have to defend Bermuda's position as an economically, stable and sound Island.

"Clearly, we are not, as Mr. Dingell suggested, an offshore banking centre for money laundering. That accusation is clearly inaccurate and unfair.'' Grant Gibbons