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#503608 - 04/23/15 04:55 AM Belize Bank, Bank of America Sever Relationship  
Joined: Oct 1999
Posts: 55,704
Marty Offline
Marty  Offline

Belize Bank Loses Correspondent Bank Relationship With Bank of America

The Belize Bank is Belize’s largest bank – controlling about half of the banking sector, and it’s Belize’s largest domestic lender – but tonight the bank is preparing for a significant change in operations. That’s because as of April 30th., it will lose its correspondent banking relationship with the Bank of America. This means that the bank will no longer be able to do international banking transactions such as wire transfers to or from the US. Importantly, it will still be able to do credit card business as usual.

We spoke with Lyndon Guiseppi, the CEO for BCB Holdings and he told us that the vast majority of the Bank’s clients - more than 90% - will not be affected by this. He called it “a manageable phenomenon” and says that the bank is “transitioning smoothly” by reaching out to all its clients who use these services to give them a list of alternatives. He said those customers who need to send a wire can do it through the Central Bank or other commercial banks. Guiseppi said the bank does not anticipate “a major fallout or major impact on day to day operations” and typical clients who go to the bank to deposit, withdraw, borrow or pay on credit cards will experience nothing different. He stressed that it is not a liquidity problem but a regulatory issue coming form the United States. When we asked if the bank will shrink as a consequence of this, Guiseppi said his bank is “still able to do the largest loans in Belize and can still generate foreign exchange through its credit card business.”

In the Corozal Free Zone, however, it’s not that simple; the bank has taken the decision to move out of the zone completely based on a risk audit.

So does it have implications for the wider banking system? Well, we spoke with the governor of the Central Bank of Belize, Glenford Ysaguirre who told us, quote, “there should be no alarm at the local level…and should it should have no damaging effect on the wider economy, and other domestic banks are not at risk”. He added that those other banks are prepared to take up the slack.

He explained that the de-risking by the Bank of America is “not an issue with the jurisdiction of Belize,” and that “the Bank of America makes its decisions and analysis based on individual institutions and their business model.” He noted that “several banks across the Caribbean are suffering the same fate and it is mostly the indigenous banks.”

Ysaguirre pointed to the Holy Redeemer Credit Union which is larger than a few banks – and pointed out that they have never had a correspondent banking relationship – and it doesn’t affect their volume of business.

Of course, that would hardly be satisfactory to the very corporate Belize Bank – and Guiseppi told us that he is working very hard to establish another correspondent banking relationship – and he hopes to do so within three months.

Channel 7


#503624 - 04/23/15 10:38 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Mar 2006
Posts: 1,817
JZB Offline
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JZB  Offline
" We spoke with Lyndon Guiseppi, the CEO for BCB Holdings and he told us that the vast majority of the Bank’s clients - more than 90% - will not be affected by this. "

Notifying the 10% of their clients who ARE affected by this would have been a nice move on Belize Bank's part.

#503627 - 04/23/15 11:58 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Jan 2003
Posts: 7,459
SimonB Offline
SimonB  Offline
I'm affected and no one has contacted me.

#503629 - 04/23/15 12:00 PM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Oct 2001
Posts: 5,850
Diane Campbell Offline
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Diane Campbell  Offline
I went to. BBI today. They had no updates.

#503637 - 04/24/15 04:14 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Oct 1999
Posts: 55,704
Marty Offline
Marty  Offline

from friends...

did you see the PM's speech at the recent conference, remarks re the US interfering with local (belizean) banks?

i know many who have closed their accounts over this long pending issue.

We spoke with the governor of the Central Bank of Belize, Glenford Ysaguirre who told us, quote, “there should be no alarm at the local level…and should it should have no damaging effect on the wider economy, and other domestic banks are not at risk”. He added that those other banks are prepared to take up the slack. ...Guiseppi [Lyndon Guiseppi, the CEO for BCB Holdings] told us that he is working very hard to establish another correspondent banking relationship – and he hopes to do so within three months.

DON'T BeLIEve a single word The Governor of the Central Bank of Belize has to say!!! A typical example of WHO you know, NOT what you know.He is one of the most incompetent Governor, The Central Banks has ever had!!! When the reality of this hits home, it will be too late for many Belizeans who are heavily dependent on imported goods. The importers wont be able to pay their international Suppliers.

Free Zone customers were given until 1 pm today to settle their affairs.

Very huge implications ... the PM was on target when he was with Obama in Panama on the effects of US policy on us but toned down a bit at home to alleviate fears I think but the issue is real and very serious indeed.



#503653 - 04/24/15 10:01 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Mar 2006
Posts: 1,817
JZB Offline
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JZB  Offline
..Still waiting on Belize Bank to say something. When I inquired yesterday I was told the acting Manager would be in touch with me shortly with information. They are leaving their clients no option but to use another bank.

#503985 - 05/05/15 11:48 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Oct 1999
Posts: 55,704
Marty Offline
Marty  Offline

Central Bank to be alternate route for wire transfers from Belize Bank customers

Bank of America principals who met with a high-level team of Government officials, including Prime Minister and Minister of Finance Dean Barrow; Central Bank Governor Glenford Ysaguirre and Economic Advisor, Ambassador Mark Espat, have given their assurance that the bank is severing relations only with the Belize Bank, and not with any other domestic bank in Belize which has correspondent banking relations with the second largest bank in the USA.

Barrow said that based on their conversation with the bank executives, “…there is no question of any kind of wrongdoing on the part of the Belize Bank.” He added that, “…nobody needs to feel that he or she has to stop doing business with the Belize Bank.”

At a press conference, attended by Belize Bank International’s executive director – Filippo Alario, who is also the chief risk officer for British Caribbean Bank (BCB) Holdings, and Lyndon Guiseppi, chairman of the Belize Bank and chief executive officer of BCB Holdings, Barrow said that the Bank of America principals with whom he and his team had met in Miami on Monday had indicated that the move is due to a “business model mismatch” between the two banks.

After Thursday, April 30, 2015, Bank of America will no longer have correspondent banking relations with the Belize Bank. Barrow explained that Belize Bank will still be able to service the bulk of its clients with credit card transactions, but wire transfers for Belize Bank customers might have to be done via the Central Bank on behalf of those clients. However, Barrow added that this does not mean that the Central Bank will step into the shoes of the Belize Bank and do wire transfers for every client of the bank.

According to Barrow, Bank of America has claimed that there is a matrix of factors that resulted in their decision to sever relations with the Belize Bank, but none of those factors had anything to do with any alleged wrongdoing or irregularity by the Belize Bank.

He said that the Government will support the Belize Bank in trying to overcome this temporary setback, although he has had his difficulties with the principal shareholder of the Belize Bank – British billionaire Michael Ashcroft. Barrow noted that the Belize Bank does enjoy the largest market share in Belize, and it services a number of sectors of the economy.

According to Barrow, the Bank of America has agreed that it will deepen its relations with the Central Bank of Belize so that, if at any time in the future, there were to be any looming sign of trouble with respect to its relations with any bank in Belize, there would be better communication about the situation. He said that the Bank of America undertook to work towards ensuring that current relations with the banks in Belize will be preserved.

It is to be noted that both the domestic and international banking enterprises of the Belize Bank have lost correspondent banking relations with Bank of America.

There have also been other notable developments, in the offshore sector. Barrow said that it has been clear for a while that Belize’s offshore sector is under threat from “the big boys,” who regard Belize as one of the “harmful tax havens;” and he confirmed that Commerce Bank of Europe has also discontinued servicing the sector. Barrow said that those who work in the offshore sector say that they believe their days are numbered.

Amandala


#506262 - 07/29/15 12:03 PM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Oct 1999
Posts: 55,704
Marty Offline
Marty  Offline
from a friend.....

Anyone transferring money into Belize vis Atlantic - be aware:

Dear Valued Customer,

As you are probably aware by now, the International Banks in Belize have been experiencing issues with correspondent banking services. We are taking this opportunity to inform you that Atlantic International Bank Limited is no exception in this regard and, as a result, our correspondent bank account with Bank of America will be closed as of Friday July 31, 2015.

Consequently, a few of our banking services such as Wire Transfers, USD Bank Drafts and Foreign Currency will be affected. In order for our customers to experience as little discomfort as possible, we ask that you pay attention to the following:

You may continue to send incoming wire transfers until Thursday July 30, 2015 using the Bank of America wiring instructions. After July 30th, no more wires should be routed through Bank of America.

We will update you in the next few days what options will be available to you for the movement of both incoming and outgoing wires. Rest assured we are working on several options at the moment and we are very confident that we will have both a temporary and permanent solution to the correspondent banking issue very shortly.

Please also note that we will not be able to facilitate any foreign currency wire transfers or USD Bank Drafts until further notice.

For further information on this matter, kindly contact your usual customer service representative from Monday to Friday between the hours of 8:00 am – 5:00 pm.

We sincerely apologize for any inconvenience caused but we ask your understanding as we work through this issue."

Atlantic Bank

#506274 - 07/30/15 04:42 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Oct 2001
Posts: 5,850
Diane Campbell Offline
.
Diane Campbell  Offline
Big brother. Again.

#506275 - 07/30/15 04:59 AM Re: Belize Bank, Bank of America Sever Relationship [Re: Marty]  
Joined: Jun 2008
Posts: 1,988
ragman Offline
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ragman  Offline
From a few post ago on May 5, 2015
Quote
Bank of America principals who met with a high-level team of Government officials, including Prime Minister and Minister of Finance Dean Barrow; Central Bank Governor Glenford Ysaguirre and Economic Advisor, Ambassador Mark Espat, have given their assurance that the bank is severing relations only with the Belize Bank, and not with any other domestic bank in Belize which has correspondent banking relations with the second largest bank in the USA.


The cost of government micro-management through regulations in the USA.


Jim
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