The Bermuda Civil Aviation Authority can carry out some of its banking overseas after a law change.

MPs agreed on Friday in the House of Assembly to allow the authority, which oversees safety and regulation for Bermuda-registered aircraft, to place its cash for day-to-day operations in interest-bearing bank accounts both on the island and overseas.

The time for the authority to deliver its annual report on the operating fund, after receiving the auditor’s report, has also been increased from 30 to 60 days.

Lawrence Scott, the transport minister, said 60 days gave the authority “a more practical time frame” to prepare its reports.

In response to questions from Opposition MP Scott Pearman, Mr Scott said the use of overseas banks would not be retroactive.

He added there was “no intent I am aware of to have funds overseas”.

But he told the House the legislation would allow the authority to do so “if they felt that was the best move”.