A former Attorney General has warned that the Government must clamp down on international money laundering if it is to secure its proposals at the forthcoming dependent territories conference.

Speaking at a Hamilton Rotary dinner yesterday Saul Froomkin claimed that the British Government would also be making demands on its colonies in return for granting concessions.

And he stressed that the introduction of anti-money laundering legislation with respect to narco dollars would be high on the UK's demand list.

"Our Government and those of the other dependent territories will shortly be meeting with senior officials and Cabinet Ministers to forge out a new relationship,'' Mr. Froomkin said.

"We have recently read and heard of certain proposals raised at the meetings here and the fact that these proposals will be presented next month in England. These proposals include extremely important matters such as British Citizenship, the right of abode and the right to work or study in England.

"There can be no doubt that if the UK Government is to seriously consider those proposals, before granting all or any of them they will require something in return. I am satisfied that one of those requirements will be the inclusion in our money laundering legislation of fiscal offences. I would go further and suggest that, even if none of the proposals I have mentioned are accepted, we and all other dependent territories will be forced to make such inclusions.'' Mr. Froomkin continued: "Those jurisdictions which refuse or refrain from complying with the general will of the international community will become pariahs and suffer the slings and arrows of that community. The World bank, the United Nations and the European Community will all treat them as social outcasts and they will suffer accordingly.

"The Proceeds of Crime Act 1997 will necessitate many of us setting up new practices and procedures in the way we carry on business. There will be some teething problems in the application of the Act to the conduct of business in Bermuda.'' Mr. Froomkin said he was convinced Bermuda was and had been for a long time the cleanest and most efficient of all off-shore jurisdictions.