By Tim Greenfield Bermuda's business community could cash in as overseas companies get nervous over being located in "blacklisted'' tax jurisdictions -- and start to look elsewhere for a base.

The Island's omission from the Organisation for Economic Co-operation and Development's list of harmful tax countries could turn into a positive force as those companies look for locations with a "clean-cut'' image.

And according to Appleby, Spurling and Kempe head of trusts and financial structures department Monica Jones, companies are already looking in the direction of Bermuda.

"Bermuda really could cash in,'' she said. "People in those other jurisdictions are certainly considering moving now, I have had inquiries on that basis.

"People are concerned about being in jurisdictions where there could be money laundering, and they don't want to be associated with that.'' Some Caribbean countries were listed by the OECD, and the AS&K newsletter "The Brief'' said the openness of Bermuda's business infrastructure was already paying dividends.

It says: "Thus it is already attracting, and will continue to attract, substantial enterprises which have no objection to an open and transparent exchange of information.'' And it goes on to say that the immediate future is more secure, without the likelihood of global pressure to change financial regulations.

Earlier this year, Bermuda pledged several refinements to the law as part of an agreement which kept the Island off the "black list'' compiled by the OECD's Financial Action Task Force.

They included methods of allowing tax information to be more easily exchanged, particularly in tax cases, permitting site inspections by outside tax authorities and beefing up legislation on company accounts.

Ms Jones said some of the changes would have little affect, since they were covered by a code of conduct already in place.

AS&K compliance officer Barrie Meade said the insurance sector, in particular, could really benefit.

"What we are finding is because business needs respectability, this adds to the respectability of Bermuda. There is a possibility that sanctions from various OECD countries will make business come to Bermuda,'' he said.

The report goes on to say: "There will inevitably be a stratification of offshore jurisdictions from respectable to disreputable. Because of this, Bermuda companies will be instantly recognised as reputable, legitimate businesses.'' TAXES TAX