Government promises tougher laws to seize dirty cash

Wayne Perinchief, Minister for National Security, said: “Lawyers and financial institutions will have to look very carefully at where their clients’ money comes from.

“That may rattle a few cages but if we are to tackle this problem then no one can be isolated from the process of trying to break the drugs trade and the illicit incomes derived from it.”

Mr. Perinchief said the Mr Bigs of the drugs trade distance themselves from selling narcotics and focus on laundering the earnings.

He added: “Most of these people are careful enough to physically stay away from drug dealing and deal with the financing.

“That means they are insulated from prosecution because police and prosecutors cannot make the link between them and drug dealing.

“They are maybe two or three levels removed and launder the money, or even have others do it, as we have seen recently.”

Mr Perinchief’s plans include seizing assets derived from crime through the civil courts without the need for a criminal conviction.

So a drug kingpin can be stripped of his dirty cash even if he has not been charged.

Mr Perinchief said the money is being laundered in various ways.

He described his shock at going to buy a new car a few years ago and being asked if he was going to pay in cash.

He said: “People are prepared to deal in large cash transactions — I was told that one person went to buy a car with a brown paper bag of cash.

“They were turned away but there are people who will take the money with no questions asked.

“I know the perils of dealing with white collar crime. I was a policeman for 30 years and I’ve been a politician for 12 years.

“You start to tread on the toes of financiers and their institutions and you start to impact on people who sell big-ticket items like luxury vehicles. But we all have to work together and face up to our responsibilities.”

Mr Perinchief has examined in legislation in other countries, including Canada and the UK.

The British Proceeds of Crime Act 2002 placed a greater obligation on professionals to report suspicious transactions or conduct to the authorities.

Police and Customs officers were given powers to seize cash they believe to be earned from crime and to ask the courts for its forfeiture.

The government is also allowed to take civil action to recover the proceeds of criminal activity and to freeze a suspect’s assets at the start of a criminal investigation.

Mr Perinchief said Government aims to close Bermuda’s “porous” borders and stem the flow of drug and gun trafficking.

He added: “We have yachts coming in, in the main, untracked and unmonitored in many ways, except for self-reporting at the point of arrival.

“We also have to consider private jets that come into the airport. We have porous borders and our border control will be reviewed to close the gaps.”

Mr Perinchief said the Bermuda Regiment’s role could change, becoming the all-purpose defence force seen in Caribbean countries.

They could be given a naval capability for control of shipping, as well as a search and rescue role.

He added: “There are budgetary issues and issues that need to be taken up with Government House but it is a desirable step to take.”