Commercial banks here are making it clear they will not risk their relationship with corresponding banks around the world to satisfy slot machine operators.
President of the Barbados Banking Association (BBA) Donna Wellington today defended the rights of the financial institutions to refuse large deposits from these operators.
“Each bank currently enjoys cordial relations with their respective correspondent banks and each bank will make decisions as to who they bank with and who they don’t. Banks are private corporations and they can choose their customer base and they do so based on the levels of risk that they are comfortable,” Wellington told Barbados TODAY Tuesday afternoon.
It was during the opening ceremony of a three-day anti-money laundering workshop here Monday that Attorney General Adriel Brathwaite disclosed that the banks were refusing to accept cash from the slot machine operators because the money was being deemed proceeds from gambling.
Insisting that the operators were running legitimate enterprises, Brathwaite complained that the international agencies that painted everyone with a wide money laundering brush were forcing Barbados “back to days where suitcases of cash” were being moved around “because people cannot bank legitimately”.
“A couple days ago a legitimate business sent me a note on WhatsApp with lots of cash on a table saying, ‘AG help me, we don’t know what to do with this; our bank account has been deactivated and we are paying our staff with cash’, and they can’t operate like that,” Brathwaite said.
However, Wellington explained that while banks operating in Barbados were not mandated by any international regulatory body to refuse deposits from these businesses, there was too much at stake.
The BBA president stressed that even though slot machine operators may indeed run legitimate businesses, there was no way of getting around the label of gambling enterprises.
“When there are elevated risk levels and challenges around money laundering, we have to be careful about these issue from a regulatory standpoint. We also have correspondent banking relationships to maintain to carry on our business because that is our gateway to the world so it is vital that we keep those relationship,” Wellington stressed.
The banking executive did not reveal the number of operators who had been designated as gambling enterprises and had been locked out of the banking system as a result.
It has become increasingly common for large banks and other financial institutions to restrict or terminate relationships with categories of customers they believe pose a high risk of money laundering, terrorist financing or other forms of crime, according to the Financial Action Task Force (FATF), the inter-governmental body which promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
This has become a severe problem in correspondent banking where global banks have been closing down relationships with many of their respondent banks, especially in emerging economies, partly for commercial reasons, but mainly because these smaller banks cannot always meet today’s higher financial crime standards, the FATF said.
colvillemounsey@barbadostoday.bb
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to ask you financial assistance
to ask you financial assistance
its unbelievable after ALL these years they NOW realize that slot machines are for gambling??
After taking in millions of dollars from profiting from these businesses they dont have the testicular fortitude to stand up for their clients. It's sad.
its unbelievable after ALL these years they NOW realize that slot machines are for gambling??
After taking in millions of dollars from profiting from these businesses they dont have the testicular fortitude to stand up for their clients. It's sad.
So when I win the Super Lotto, they won't be taking my money either cause that money would be proceeds won from gambling also. You my dear are an idiot and the people who gathered around a table in their big chairs in the air conditioned room to make this stupid decision are idiots too, guess you guys didn't think this one through huh....smh.
So when I win the Super Lotto, they won't be taking my money either cause that money would be proceeds won from gambling also. You my dear are an idiot and the people who gathered around a table in their big chairs in the air conditioned room to make this stupid decision are idiots too, guess you guys didn't think this one through huh....smh.
It is also said that persons go out and rent guns , now it is people going to business places paying a fee and have their ill gotten large sums of cash put in the banks. Nice to see that this loop-hole is being plugged. If I usually bank $100. and then I keep coming with $10.000 and the amount continue to climb, of course some one will pay attention..... Get caught that's what.
It is also said that persons go out and rent guns , now it is people going to business places paying a fee and have their ill gotten large sums of cash put in the banks. Nice to see that this loop-hole is being plugged. If I usually bank $100. and then I keep coming with $10.000 and the amount continue to climb, of course some one will pay attention..... Get caught that's what.
Steupse to the educated bank people. How do they tell the difference between my money and the slot machine money. As long as it is not fake it is legal tender. I would like to know why the same thing is not happening world wide. Just another ruse to sink Barbados. Well their lost is the credit union's gain. Personally I prefer them to have the "headache" than to deal with the bank. I haven't had an account for years. My two pennies at the credit union as the bank would make me sin my soul too often.
The higher the monkey climb the more you see his you know what. Hee haw hee haw hee haw.
I know of someone who sold their property, deposit the check and a few years wanted to with draw a few thousands was told that they can`t get that amount, it was more problems than you could imagine, got so mad after they were put through all the hassle, then the CB must be involve just to get what is yours.
Steupse to the educated bank people. How do they tell the difference between my money and the slot machine money. As long as it is not fake it is legal tender. I would like to know why the same thing is not happening world wide. Just another ruse to sink Barbados. Well their lost is the credit union's gain. Personally I prefer them to have the "headache" than to deal with the bank. I haven't had an account for years. My two pennies at the credit union as the bank would make me sin my soul too often.
The higher the monkey climb the more you see his you know what. Hee haw hee haw hee haw.
I know of someone who sold their property, deposit the check and a few years wanted to with draw a few thousands was told that they can`t get that amount, it was more problems than you could imagine, got so mad after they were put through all the hassle, then the CB must be involve just to get what is yours.