COMMERCIAL BANKS have been quietly closing accounts they deem to be risky or suspicious.
Two Caribbean researchers have found that banks in Barbados, responding to increased international scrutiny, are taking pre-emptive action to secure what’s known as correspondent banking relations (CBR) with overseas institutions.
Since 2013, they have dropped the accounts of more than 60 customers who were either “too risky from a money laundering and financing of terrorism perspective” or provided an inadequate rate of return.
But that is only the tip of the iceberg when it comes to the Caribbean region which is battling the threat of a purge of CBRs as part of a phenomenon known as de-risking. (GE)
Please read the full story in today’s Sunday Sun, or in the eNATION edition.
