THE finance industry is over-burdened with bureaucracy. Chamber of Commerce president Mark Gill believes local anti-money laundering regulations are excessive and he wants money spent on criminal intelligence instead.

Speaking after the latest business trends survey showed a loss of confidence in the island’s economic prospects, Mr Gill said that regulation was one of the main contributory factors to that loss in confidence.

Commerce and Employment minister Stuart Falla said that he was aware of the industry’s concerns. His department would look at the issue.

‘I think concerns are clearly going to be what happens when there is zero corporation taxation in 2008 and what the States will put in place to compensate,’ said Mr Gill.

‘Of course there is also uncertainty over other measures that could be put on us such as more regulation and bureaucracy in the finance sector.

‘Unless that uncertainty is addressed, potentially new investment could be going elsewhere as we become less competitive.’

Mr Gill questioned whether the current regulatory remit was the best use of resources.

‘Currently, there just seem to be more regulations loaded on us as part of anti-money laundering efforts and everybody is complaining. I question whether this is the best use of resources because I think money could be spent elsewhere to enhance criminal intelligence.’

Deputy Falla said that the department had made a non-States appointment to help address the issue.

‘Peter Ferbrache has made it clear that he thinks there is too much financial regulation in the island and that is one of the reasons why we have appointed him as a non-States member,’ he said.

‘We want regulation but not over-regulation. While we are not yet looking at it specifically we certainly have our mind set in that direction.’

YBG president Matt Polson said that he would not be surprised if bureaucracy was affecting confidence because he was aware that finance industry representatives were concerned about the high level of regulation and compliance required in the island.