SCOTIABANK JAMAICA has maintained that its decision to close the U.S. dollar account of a Cuban Ambassador is consistent with international laws and laws of countries in which it does business.
The bank closed the account of the Cuban Ambassador to Jamaica, Gisela Garcia Rivera because the account was in violation of Bank of Jamaica guidelines governing U.S. legislation the bank said. Such legislation prevents Cuban nationals and those from some other countries from holding U.S. dollar accounts.
In a letter to The Gleaner yesterday, Senior Vice-President of Scotiabank, David Noel said the bank's action was within the bounds of usual practices and policies of major banks around the world.
He explained that drafts and cheques relating to U.S. dollar accounts must first pass through U.S. corresponding banks. If money belonging to any of the embargoed countries passed through that account then their assets would be frozen.
POLICY REVIEW
"This has been our experience and necessitated a review of our policies related to U.S. dollar accounts. The Bank of Jamaica has published guidance that specifically refers to the U.S. Patriot Act and requires that "banks and other financial institutions operating in Jamaica that have established correspondent accounts or any other business relationship with banks in the U.S. should be aware of the provisions of this act".
As such, Mr. Noel said it would be "prudent for us to be mindful of the impact that such U.S. laws could have on accounts maintained in U.S. banks."
But Cuban Government official Dr. Ricardo Alarcon suggested that the bank was in contravention of Jamaican law when it closed the account.
"It (Scotiabank) is supposed to act and abide by the clear laws and regulations of the host country. It's supposed to abide by the Canadian laws without disregarding the Jamaican laws," he said.
Scotiabank is Canadian owned.
There is no known law in Jamaica barring embassies from holding accounts in any currency in any bank.
