2 weeks ago, we showed you the press conference hosted by the Director of the Financial Intelligence Unit, and the Governor of the Central Bank of Belize. At that event, they announced that the country's banking practices are more resistant to money laundering and terrorist financing than ever before.
As the lead agencies in the financial and banking sector, they were trying to get all the bankers compliant with the regulations set out by the Caribbean Financial Action Task Force. After months of hard work it was finally accomplished, but with this new level of accountability and transparency, it does affect the off-shore banking sector, which used to offer banking without full disclosure. That confidentiality could have been used by criminal organizations to make illicit transactions.
So, Belize like all the other territories in the Caribbean took steps to insulate against that type of illegal behavior, and now, we've been given the nod as one of the countries that is compliant. Because of the pressures coming down from the finance regulating organizations from abroad, the Belize Bank was one of the local banks which was negatively affected when it lost its corresponding banking relationship with Bank of America. So, today when we got the opportunity, we asked the Executive Chairman of Belize Bank, who also the CEO of BCB Holdings, about how the compliance has allowed the bank to move past this setback. Here's what he said:
Lyndon Guiseppi - Executive Chairman, Belize Bank
"And the reality is that even while Bank of America terminated a number of banks in Belize including Belize Bank, Commerce Bank which is the other corresponding bank that has served Belize for many years, continues to provide banking services. In addition to that the Belize bank staff actively visited New York and Miami during that period and we were able to identify a number of banks who have providing some of those services. They're not providing all of the services but they're providing some and thankfully the relationship with the Central Bank has also allowed us to facilitate wired transfers. The Central Bank has come to our assistance and they're providing support in assisting with the wires that we took out and those banks that continue to have relationships with Bank of America and Commerce Bank are also assisting those banks who have lost the correspondence banking relationships. I think what has happened here is a result of the corresponding bank impasse is that the banking sectors is growing stronger. There's much more collaboration between the individual partners and I'm very confident that in a couple months, this will be something of the past."
Daniel Ortiz
"Sir, we know that the Governor of Central Bank and the Director of the FIU explained this theoretical benefit that each bank will receive post becoming compliant with the CFATF regulations. Has it in that brief period shown any sort of measurable assistance to the Belize Bank?"
Lyndon Guiseppi - Executive Chairman, Belize Bank
"I would say absolutely. In fact I was sharing with the governor last week that we received a call from a bank in the United States post the graduation of VICRG. This is a bank which previously was not interest in doing business in Belize and they're in fact now entertaining request from Belizean Banks to the corresponding banks with them. So, I can't say specifically, it's a result of the upgrade but I feel confident that it has to do with that as well."
Belize is one of 27 CFATF members.
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