The fight against white collar crime and money laundering is still going strong ? with new legislation in the pipeline to beef up the laws against both.

In the Throne Speech on Friday Governor Sir John Vereker said the powers of the Bermuda Monetary Authority (BMA) are set to be strengthened so that it can help in the fight against financial crime and new anti-money laundering laws are to be put in place.

The Government has pledged to change the laws in a bid to crack down on financial crime and will widen the BMA's powers to help it detect and investigate possible offences. It will also review existing financial services legislation in line with the KPMG report and international standards, he said.

"A more robust approach will be taken to the prosecution of white-collar crime," said Sir John.

"The Bermuda Monetary Authority Act 1969 will be amended to expand the existing definition of financial crime, thereby increasing the powers of the BMA to detect and assist in the investigation of financial crime."

Contacted after the speech, a BMA spokeswoman said it had been working to enhance the protection available to the public in their dealings with investment service providers and it remained concerned at reports of local investors being defrauded by non-licensed investment businesses or purchasing poor quality or inappropriate products.

And she said that an important element of the intended enhanced protection will be via a new regulatory framework.

The Investment Business Bill 2003 was introduced into Parliament and approved by the Lower House on 30 May 2003. Although not dealt with by the Senate before prorogation, it is hoped that it can be reintroduced into the House as a priority item as soon as Parliament reconvenes, said the BMA spokesperson.

She said: "In the meantime, work is continuing on drafting the related secondary legislation that will be necessary. A committee of Authority representatives and Ministry of Finance officials is carrying forward detailed planning of the transitional and other arrangements that will be required for the introduction of the new legislation."

But she said that equally important will be related public information and education measures to ensure that consumers of investment services have an adequate understanding of financial markets and products, as well as of their rights as consumers and of the protections provided through the relevant regulatory legislation.

"The authority will be working closely with other interested partners, including the Consumer Affairs Bureau, to coordinate plans for public information in this area. Meanwhile, consumers are reminded that they should be cautious whenever approached by an investment provider not previously known to them, and make proper inquiries before entering into any agreements. They can check with the Authority regarding whether an investment dealer is duly licensed under the Investment Business Act 1998. If an investment provider is not licensed, consumers should ask why. If they have concerns that unlicensed business (that is not exempt) may be being conducted, they should report the circumstances to the authority."

She added that the Authority had recently established a new Enforcement Unit to take over responsibility for the investigation of complaints and concerns about possible breaches of Bermuda's various regulatory statutes by non-licensed persons.

The spokesperson also said that the BMA had been part of the National Anti-Money Laundering Committee and had been conducting public consultation on a number of proposed changes in Bermuda's anti-money laundering provisions, in parallel with the Financial Action Task Force review.

She said: "Bermuda has had very effective anti-money laundering provisions in place for a number of years. These include the Proceeds of Crime Act 1997 which creates general law offences relating to the concealment or transfer of the proceeds of criminal conduct or assisting another person to do so.

"There are then specific regulations (and associated guidance notes) making detailed provisions for regulated financial institutions."

And she said that the anti-money laundering committee had been finalising its own review of Bermuda's provisions, and making recommendations for the changes necessary to ensure that Bermuda continues to meet fully the relevant international standards.

The spokesperson added: "The authority is closely involved in this work, both as a member of National Anti-Money Laundering Committee and as the financial regulator for many of the businesses subject to the regulations. The Authority's supervision of licensed financial businesses subject to the regulations includes specific checks on their compliance with anti-money laundering requirements."