If Barbadians were to dispassionately try to solve many of the ills affecting our little island, a priority item would be a flawed governance system. The revelation that head of the Fair Trading Commission (FSC) is the nephew of deceased late Prime Minister David Thompson should make those calling for greater transparency in government raise the level of advocacy.
In 2013 Leroy Parris of Professional Services Inc was ordered by CIBC FirstCaribbean International Bank to remove eight million dollars from that bank – CIBC First Caribbean International Bank Instructs Leroy Parris to Take a Hike. The reason has not been made public although John Public would have to assume CIBC FirstCaribbean International Bank took issue with the source of the funds. Of interest is that the funds were reported to have been transferred to a credit union. Obviously, if true, the credit union had no similar concerns.
BU has a problem with any of the big 3 credit unions accepting a large deposit which has the potential to destabilize its portfolio given credit union business operations and philosophy. Further, would the Financial Services Commission (FSC) responsible for regulating credit unions have shown an interest in the transaction for the same reason as CIBC FirstCaribbean International Bank? Surely the FSC would not take lightly the position of a Canadian based bank which comes from a market with a reputation of adhering to best governance principles.
BU understands financial institutions in Barbados and elsewhere are forced by law to report deposits which do not meet established criteria spelt out in laws of the land. In Barbados the Barbados Financial Intelligence Unit/Anti-Money Laundering Authority is responsible for receiving (and requesting), analyzing and disseminating to the competent authorities, disclosures of financial information: (i) concerning suspected proceeds of crime and potential financing of terrorism, or (ii) required by national legislation or regulation, in order to counter money laundering and terrorism financing. This is in essence the core work of the FIU. The Unit also engages in the sharing of financial intelligence with other Financial Intelligence Units – Barbados Financial Intelligence Unit.
BU admits we are unaware of any individual charged under the Anti-money Laundering Act since the Barbados Financial Intelligence Unit was established. One would imagine the relative small size of the Barbados market should make it easy to tie financial transactions to criminal behaviour. Why is the public not seeing the fruit of the labour of this body measured in the number of arrests and convictions? Note the composition of the Anti-money Laundering Authority.
BU does not expect the FSC to publicly pronounce on this matter but yet there is a reasonable expectation by taxpayers the FSC should convey it is on the job. The Office of Supervisor of Insurance it replaced failed to deliver efficient enforcement of laws and the CLICO fiasco has been the result.
One way Barbadian taxpayers might feel satisfied with the FSC is if there is an energetic call by them to unsealed the CLICO judicial manager’s report by order of the Courts of Barbados.
The blogmaster invites you to join the discussion.