Caribbean News Now!

About Us Contact Us

Countries/Territories

Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.

Contribute

Submit news and opinion for publication

Subscribe

Click here to receive our daily regional news headlines by email.

Archives

Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin
Instagram



News from the Caribbean:




Back To Today's News

Commentary: How Caribbean banks can keep their US correspondents by utilizing KYCC technology
Published on February 18, 2017 Email To Friend    Print Version

By Kenneth Rijock

The potential loss of correspondent banking accounts in the United States is dominating conversations among Caribbean bankers recently, especially since a number of American financial institutions have terminated many of those longtime relationships. It is perhaps the most pressing problem bankers in that region face. Is there a viable solution? Yes, there is.

kenneth_rijock.jpg
Kenneth Rijock is a banking lawyer, turned career money launderer for ten years, turned compliance officer specialising in enhanced due diligence, and a financial crime consultant. His autobiography “The Laundry Man” was published in the UK on 5 July 2012
The US banks, operating under risk-based compliance programs, are reducing risk wherever possible, and the Caribbean, which through the accident of geography is both a transit zone for narcotics and a favoured money laundering destination. unless the Caribbean financial institutions have a means of assuring the onshore US banks that their clients/customers are all legitimate, correspondent relationships, even those which have been maintained for decades, are at risk.

The American banks need to know who your customers are, in essence, Know Your Customer's Customer, or KYCC is the solution. Armed with this knowledge, the risk managers can ascertain whether any of the Caribbean bank's own customers pose a threat, and should be terminated. This procedure also helps the Caribbean bank reduce its own risk level, and therefore improve anti-money laundering, and countering the financing of terrorism programs.

New technological advances in compliance programs allow users to identify unsatisfactory or high-risk customers, or good customers who later have issues that raise their risk levels, as well as all your low-risk clients who should be retained. Space does not permit an adequate and illustrated description of those programs, and why they are an acceptable means of restoring the correspondent bank's confidence in your client base and AML/CFT program, but if any readers are not familiar with those programs, feel free to send me an email at: miamicompliance@gmail.com with your query and I will respond to you in detail.

While it is the Caribbean banks that are reporting the most terminations of correspondent relationships, a recent report from other areas of the developing world also indicates that similar situations were occurring in Latin America, Asia and Africa.

I hope that those banks also choose an effective solution, before they also suffer what might be a catastrophic loss in correspondent relationships.
 
Reads: 4839





Click here to receive daily news headlines from Caribbean News Now!




Back...

Comments:

No comments on this topic yet. Be the first one to submit a comment.

Back...

Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Comments:
Enter Code



Please note that, if you are using an AT&T domain email address, e.g. att.net, bellsouth.net, sbcglobal.net, the verification email will likely not be delivered. This is outside of our control and the only remedy seems to be for readers to complain to AT&T





Disclaimer
User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.




Other Headlines:



Regional Sports: