Gibbons said yesterday.

And he added that -- in line with international regulations -- more power was set to pass the Bermuda Monetary Authority from the Ministry of Finance.

Dr. Gibbons, fresh from a major economic summit in Davos, Switzerland, said UK, European and international trends were clear: "Regulation is being recommended to be less political and more independent.

"The BMA will be more directly responsible for the licensing of such things as banks and companies, rather than them going through the Ministry of Finance as they do now.

"That is clearly the request in Davos, and from the other international bodies.

"The BMA will become the principle regulatory body in Bermuda and responsible for supervision, regulation and inspection of financial institutions here -- ones operating here and those from Bermuda.'' The move could also mean more staff as the BMA's role expands to take in current Government roles.

Dr. Gibbons said: "It's important to make sure the BMA is not only doing its job....but has the resources to do so as we amend our regulations and standards with what is basically a moving target in terms of financial regulation.'' He was speaking after UK Foreign Secretary Robin Cook, at a meeting of the Dependent Territories Association in London this week, asked for finance and regulatory measures to the highest international standards to be put in place in the Dependent Territories by 1999.

Dr. Gibbons also wants to see comprehensive measures to combat money-laundering, including ways of checking companies incorporated in Dependent Territories but based elsewhere.

And Mr. Cook asked for legislation to allow the colonies to co-operate fully with overseas investigations of financial dealings in their jurisdictions, as well as for "genuinely independent'' regulatory bodies.

But Dr. Gibbons said the UK did not set standards on its own, but followed international recommendations like a Basle-based banking supervisory group and the Financial Action Task Force, (FATF) which has a Caribbean subsidiary of which Bermuda is a member.

He added: "Everyone should understand that world supervisory standards are not set by the UK Government but by international bodies.'' He said the view in Switzerland was "that a good part of some of the financial difficulties in recent years, particularly in Asia, could be improved by more robust banking supervisory procedures.'' Dr. Gibbons added that the Finance Ministry and the BMA had already set up a working party with the BMA to examine "deposit entities'' like banks "to see what we need to do to move into line with the Basle principles.'' But he said the new Proceeds of Crime Act would put Bermuda "effectively puts us very much into sync with FATF.'' And he added: "One of the clear messages coming through from Davos is that the European Union will have homogenisation of legislation across Europe... .which countries will have to adhere to if they don't want to be considered outcasts.'' CONFERENCE CON