Bermuda's Government is encouraging entrepreneurs to set up in business as money service providers, helping customers send money from one country to another.

This follows the announcement by Finance Minister Paula Cox of the enactment of the Money Service Business Providers Regulations (MSP) at a press conference yesterday.

Ms Cox also outlined her trips to the Atlantic Connection, third Annual Economic and Financial Development Conference entitled: 'Current Trends and Caribbean Investing' in the British Virgin Islands as a keynote speaker and panellist and the RIMS (Risk and Insurance Management Society) conference in San Diego this week.

She explained that MSP services had already proved to be a big hit in other jurisdictions because of their convenience for individuals who need to send money in cases of emergency outside of normal banking hours and now Bermuda was following suit.

"As you can appreciate, local MSPs will be of tremendous benefit to Bermudians either vacationing or residing abroad... particularly for those parents who have children studying overseas who in some cases need a quick injection of cash in a pinch," she said.

And Ms Cox, who envisages between three to five companies providing the service, believes it will open up opportunities for local entrepreneurs to get involved in the scheme.

"In keeping with our mandate of putting Bermudians on the right path of exploring viable economic opportunities, we view the partnership of becoming a local licensed MSP provider as the prime opportunity for those hungry and innovative entrepreneurs out there," she said.

The Bermuda Monetary Authority (BMA) will be responsible for licensing and overseeing the MSPs on the Island, as well as carrying out compliance checks on the company, and Ms Cox urged any Bermudians interested to contact the BMA's banking trust and investment division. Meanwhile, the capital maintenance requirements are not prohibitive and have been set at $50,000, according to Ms Cox, who said that applicants will also need sufficient insurance to cover the risks inherent in the business of money provision.

"Of course, such opportunities or ventures would be subject to the proper vetting and scrutiny and must satisfy the regulatory requirements of the legislation," said Ms Cox.

"While we welcome the introduction of such services to Bermuda, we are also cognisant of the need for the appropriate financial supervision of such services. To that end, I want to remind and assure the public that we have in place the proper regulatory framework for oversight and compliance with our anti-money laundering and anti-terrorist financing regime to ensure that the services are not used.

"Such oversight will also ensure that those who are providing the service remain vigilant in detecting and preventing financial crime, particularly money laundering and terrorist financing, thus continuing to protect our well-regarded reputation.

"It is important in the context of the IMF and anti-money laundering to make sure that we say it is not a 'free ride'.

"Finally, it is hoped that once these services are underway, they will prove to be of great benefit for those in our community — both for our residents and for potential entrepreneurs."

To find out more about becoming a Money Service Provider visit www.bma.bm for guidance notes and www.bermudalaws.bm to download the Money Services Business Regulations 2007 document.