Banks looking at money laundering

Published: Monday September 8, 2008

The issue of money laundering will be high on the agenda when the Caribbean Association of Indigenous Banks (CAIB) holds it 35th annual general meeting and conference in Barbados in November.

The theme of the meeting is Safeguarding Our Future In The Face Of Global Economic Challenges, and CAIB's chief executive officer (CEO) Patricia Hamilton has explained that money laundering was one of the main problems facing regional banks.

"Last year, for example, we discussed the issue of money laundering in the pre-conference training and this year we continue because it is one of the primary issues that we need to keep in front of our members," she said.

The CEO of the 61 strong organisation noted that money laundering was one of the primary challenges facing the members of the CAIB because of the direction the United States had taken with the implementation of the Patriot Act.

"Our role is to ensure that our members at all times are on the cutting edge and we are in line with the First World in terms of the practices and procedures that our members are guided by, adopt and implement.

"In this regard, the board has made money laundering quite an issue. We hope at this year's AGM to endorse and confirm a set of Caribbean principles which will allow us to ostensibly say to the world that these are the principles that we are guided by," Hamilton said.

The CAIB head added that high cost associated with anti-money laundering software made it a serious threat to the financial viability of some regional institutions.

"We will be exploring whether there are opportunities for our members to share this cost, and also look at how we can share the expertise that is out there and ensure that we do not make any mistakes . . . I am sure you have heard of some of these banks that have closed or have been fined and the fines these days are quite substantial," she said

Regional threat

Robert Le Hunte, chairman of the conference's organising committee and CEO of Barbados National Bank, concurred that money laundering was a threat to regional banks and he warned that a problem at one regional institution could have a ripple effect.

"When you operate in the region one problem at a particular institution in one Caribbean country really has an impact on all of us and the reputation of the region itself. Whether you are a large indigenous bank or a small one, we all have to work together.

"We have to share on our successes and work towards making sure that all of the banks that operate under the CAIB banner have a particular strength and reputation. We have to put all the systems in place to make sure that we [are] able to send a clear message that we are compliant from a regulatory stand point," he said.

More than 250 of the region's top bankers are expected to be in Barbados for the CAIB conference that will run from November 16 to 20 at the Sherbourne Conference Centre.


Source: Nation Newspapers
http://www.nationnews.com/story/309852796270292.php