Cox Gives Progress Report On KPMG Recommendations

by Amanda Banks, Tax-News.com, London

06 May 2002

Speaking last week, Bermudian Finance Minister, Eugene Cox gave an update on the Island's progress with regard to areas of concern highlighted in a KPMG review of the jurisdiction commissioned by the UK government in 1999, according to a report in the Bermuda Royal Gazette.

In a White Paper released three years ago, the UK authorities acknowledged that Bermuda had a 'reputation for honest administration and probity', and explained that the KPMG review was designed to ensure that this reputation was 'preserved and enhanced'.

According to the Royal Gazette, Mr Cox seemed pleased with the progress made since 1999 in areas such as the establishment of independent regulatory authorities, the completion of anti-money laundering legislation, and the provision of assistance to overseas regulators in cases of tax evasion and money laundering.

The newspaper quoted the Finance Minister as announcing last week that:

'This updated report confirms Bermuda's commitment to ensuring that its financial regulation continues to meet international standards. It also makes clear the sustained progress being made by the government on the wider review and upgrading of Bermuda's suite of financial regulatory information to which we are committed.'

The Bermudian Finance Minister revealed that the Island's insurance regulator had been separated from the government, in compliance with the first 'priority action' recommendation, and that amendments to the Bermuda Monetary Authority Act and the Insurance Act have provided many of the powers necessary for effective information exchange with the regulatory authorities of other countries.

However, he added that further amendments to the legislation which governs Bermuda's financial centre are set to come before the House throughout 2002, improving the efficiency of the regulatory regime still further.

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