ECCB official warns about de-risking

ECCB official warns about de-risking

The deputy governor of the Eastern Caribbean Central Bank (ECCB), Trevor Brathwaite, has warned about the impact on the region of de-risking by international banks.

De-risking is the process of international banks terminating relationships with correspondent banks.

According to the Antigua Observer, it is done to avoid tedious “risk based procedures”.

The procedures have been imposed by the Financial Action Task Force on Money Laundering to limit financial crimes, the Observer said.

It quoted Brathwaite as saying that the measure will have multi-sectoral impact on regional economies, which could mean a stop to economic activity.

The ECCB official said:

“If you want to take it to the extreme, you and I will not be able to shop in a supermarket because the supermarket will not be importing the stuff we like to buy,” he said. “You and I will not even be able to buy shoes and clothes … cars, tyres and parts.”

He explained that local banks will not be able to process purchase transactions and merchants will not send goods without the assurance of payment.

“We are importing nations, so most of everything that we use, we import. For you to import you must have the ability to pay for those imports. Even if you had a lot of EC dollars to pay for your transaction, then without a correspondent banking relationship, that’s where it stops,” the ECCB official said.

He added that while such an occurrence may boost the consumption of local goods, there may be internal issues with producers being able to keep up with supply.

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12 Comments

  1. Anonymous
    June 20, 2016 at 7:41 am Reply

    New World Order

  2. smh
    June 20, 2016 at 9:19 am Reply

    Smh, Chastanet again.

    1. Anonymous
      June 20, 2016 at 10:17 am Reply

      Its a regional issue u DONKEY!! Not as a result of Chastanet as this problem existed long before his tenure..

      1. positive
        June 20, 2016 at 10:35 pm Reply

        This one caught my attention. DONKEY lol

  3. Unknown
    June 20, 2016 at 11:05 am Reply

    What is wrong with some Lucian my God read and understand .

  4. Anonymous
    June 20, 2016 at 11:06 am Reply

    What’s going on in this world ? some one please answer me.

  5. Anonymous
    June 20, 2016 at 11:06 am Reply

    Its all about prophecy being fulfilled. People get ready make sure your life is in order with the almighty no one can stop biblical prophecy. May God have his way and mercy upon our lives.

  6. Anonymous
    June 20, 2016 at 11:07 am Reply

    Kenny fault ppl

    1. positive
      June 20, 2016 at 10:36 pm Reply

      Hahahaha. Yessss!!!

  7. Anonymous
    June 20, 2016 at 4:28 pm Reply

    The Chastanets created the problems for St. Lucians. Deal with it. Clean your mess Allen.

    1. positive
      June 20, 2016 at 10:37 pm Reply

      Shut up u fool. Think b4 u type..

  8. Anonymous
    June 21, 2016 at 2:12 pm Reply

    He has nothing to do with it

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