Government has introduced a raft of new measures aimed at tackling anti-money laundering (AML) and combating the financing of terrorism.

The Financial Intelligence Agency Amendment Act 2008, which was presented by Senator Kim Wilson to the Senate Chamber yesterday, will provide statutory immunity for the board of directors of the Financial Intelligence Agency (FIA), allow the Ministry to oversee the board's activities, and expand the size of the board. She said the set of new legislation would improve Bermuda's framework for AML and addressing the issue of financing of terrorism.

Meanwhile the FIA, which was set up as an independent statutory body funded by Parliament, will take on the current administrative role of the Bermuda Police Service (BPS) Financial Intelligence Unit (FIU), said Sen. Wilson.

It will also be responsible for receiving suspicious activity reports on suspected proceeds of crime and potential financing of terrorism, coupled with the analysis, collation and dissemination of the information received to the BPS and to overseas authorities carrying out similar activities.

The FIA will be overseen by a board of directors appointed by the Minister of Justice, with the board appointing a director and CEO and other staff including a legal cousel, senior and junior analysts, forensic accountant and administrative assistant.

Its powers feature a limited freezing of funds and obtaining information, without a warrant being required to speed up the process.

Arrangements to find a base for the FIA were being finalised, while on-site visits have been made to FIUs in other jurisdictions to get advice and help on the establishment of Bermuda's FIA.

"This Amendment Act grants stautory immunity to the board of directors, officers, servants or agents, who perform their functions in accordance with the Act," said Ms Wilson.

"These amendments will afford the FIA's board and staff exemption from any action, suit or prosecution as a result of carrying out their functions bona fide.

"Government will be held vicariously liable for any negligent acts and/or omissions of the FIA's mandate to freeze funds in order to properly carry out its statutory duties may give rise to potential liability claims against the government."