Caribbean leaders warn of region’s economic collapse
Caribbean News Now!- caribbeannewsnow.com – September 26, 2016
Photo: Prime Minister Gaston Browne of Antigua and Barbuda addresses the general debate of the General Assembly’s 71st session. UN Photo/Cia Pak
NEW YORK, USA — Gaston Browne, prime minister of Antigua and Barbuda, told the United Nations General Assembly on Saturday September 24, 2016 that, along with climate change and lingering indebtedness, Caribbean islands face another existential threat from the withdrawal by global banks of correspondent banking relations to their financial institutions.
In the global campaign against money-laundering and terrorist financing, very strict penalties have been imposed on banks by regulatory bodies in North America and Europe for any infringement of the stringent regulations.
“In this environment, where even the slightest infraction could expose a bank to a fine of hundreds of millions of dollars, many have chosen to withdraw essential correspondent banking relations from financial institutions in the Caribbean, Central America and Africa,” he explained, adding: “They call this process de-risking. I call it economic destruction.” [Read more]