Efforts to sway intl banks from cutting ties with region bearing fruit – Shaw
Minister of Finance and the Public Service, Audley Shaw, says the Government continues to lead discussions to counter the threat of international correspondent banks cutting ties with local financial institutions.
Correspondent banking involves a bank in one country facilitating certain services for a financial institution in another country, including wire transfers, business transactions, deposits and the gathering of documents.
Over the past five years, a number of international banks have restricted or ended their relationships with the region due to concerns about money laundering, fraud and terrorist financing.
Caribbean countries have been collaborating to set up the regulatory environment to efficiently supervise banking and money services and to identify and manage the money laundering and terrorism financing risks in the financial sector.
They have also been lobbying banks to reconsider their decision to withdraw their services.
Addressing the fifth annual Anti-Money Laundering/Counter-Financing of Terrorism Conference on Tuesday Shaw said he believes the regional efforts to challenge the move by banks to cut ties have been bearing fruit.