7 News Belize

Another Bank Gets Yanked By BOA
posted (August 10, 2015)
We also asked the Prime Minister about the situation with Atlantic Bank International. News broke last week that Bank of America closed its correspondent banking relationship with Atlantic Bank International - same as they had done with the Belize Bank - and Belize Bank International.

Now, Atlantic International is a bank with only foreign customers, or persons who do not reside in Belize. It used to offer wire transfers, USD bank drafts and foreign currency to the US through Bank of America for their American clients. But, ten days ago, Bank of America ended that relationship.

Since it is the second bank in Belize that Bank of America ended corresponding relations with, we asked the Prime Minister - who is also the Minister of Finance - about the broader implications. Here's what he had to say:

Prime Minister Dean Barrow
"It is unfortunate, but the international banks are in fact as we said to you de-risking. That is the term that's used in the sector and its happening to small jurisdictions all over the place. Again, with the termination of the relationship with respect to Atlantic, it is only on the international banking side. So the domestic bank certainly as of now is not affected. Apart from de-risking, I've said for some time now that the large jurisdictions are determined to destroy the offshore sector in small countries such as Belize. They say that it is harmful tax competition, that it gives their nationals a chance to put their money in jurisdictions like Belize and avoid paying taxes to them."

"That one is inevitable. I think that there is a great deal of hypocrisy on the part of the big countries, but I have made up my mind that that is inevitable. So, I am far more concern about the domestic banks and when they have their corresponding banking relationships terminated. Thankfully, up until this point in time, it is only the Belize Bank on the domestic side that has had that termination. So, I will continue to hope that it is contained that it won't go beyond the Belize Bank on the domestic side."

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