And while the Barrow administration made the popular, prudently managed choice with the Venezuelan money, what might not be so popular is another decision announced today. The Financial Intelligence Unit will no longer be pursuing hundreds of charges under the Money Laundering Act against two local banks. As we’ve been reporting, the charges are for failure to report a suspicious transaction. The Belize Bank was assessed with 79 charges and the First Caribbean Bank with 112. The charges relate to suspicious transactions conducted between 2001 and 2005 when BTL changed US$100 million on the currency black market.
It was a series of alleged violations that had not been pursued by the last government, and when this new one brought it against the Belize Bank, it was seen as a major offensive for the government of Belize to engage the Ashcroft business empire on all fronts. And while the case was being juggled in the courts locally, sources tell us that enormous international pressure was mounting on both banks whose credibility was in serious question with their external partners. But now, the pressure is off, and suddenly it’s been settled. The Prime Minister and Minister of Finance explained the terms today.
Hon. Dean Barrow, Prime Minister
“I want to indicate that the Financial Intelligence Unit will today I believe announce that it is withdrawing the charges brought against the Belize Bank and First Caribbean International Bank. The FIU and the government of Belize, specifically the Ministry of Finance, are satisfied that any holes in the system which provides for the reporting will be plugged now by the agreement reached between the FIU and the banks.”
Jules Vasquez,
Is that a quid pro quo, I know you had a meeting with Michael Ashcroft yesterday?
Hon. Dean Barrow,
“Certainly not a quid pro quo with respect to Michael Ashcroft. The charges or, there was a need to make arrangements that would offer some comfort to the system and offer some comfort to international partners. And it is in that context that these arrangements and this settlement out of court if you will happened and that’s basically what it is. Apart from assisting with remedial measures, measures to plug the gaps in the reporting system, I believe each bank in a show of public spiritedness is going to undertake some public project, having to do with the two parks; Battlefield Park and Memorial Park.”
Jules Vasquez,
Sir US$100 million was changed on the black market, Mr. Aguilar was driving out at night with hundreds of thousands of U.S. dollars in his vehicle.
Hon. Dean Barrow,
“That is something you should perhaps address to BTL, shouldn’t you.”
Jules Vasquez,
But obviously the banks were involved, the banks facilitated the availability of that cash. A wrong was done.
Hon. Dean Barrow,
“How do you know that a wrong was done. There has been no trial, the banks have always maintained that what they did violated no laws, I am not saying that they are right or that they are wrong. The courts would have determined that had matters proceeded. Matters will not now proceed. We are satisfied that in the interest of financial stability, in the interest of international partnerships, this is the right thing to do.”
Jules Vasquez,
Why then was it not done months ago?
Hon. Dean Barrow,
“Because these things take a degree of time to be worked on and to be worked out. But it is done now and that’s an end to it.”
Jules Vasquez,
Sir are you able to characterize your discussions yesterday with Michael Ashcroft, are we approaching a settlement, are we discussing a settlement?
Hon. Dean Barrow,
“Well we are certainly discussing a settlement. I would not go so far as to say we are approaching a settlement at all. I would limit it to say we are discussing a settlement.”
Jules Vasquez,
Are you able to what things are on the table?
Hon. Dean Barrow,
“No at this juncture I don’t think that would be proper. I want to see whether there is any chance at all, any realistic chance of reaching a settlement and if we ever get there, of course everything will be put to the Belizean people before there is any inking of any draft settlement proposals.”
Apart from their community service, the banks will also pay for the software to render automatic electronic reports of what might be suspicious transactions to the Financial Intelligence Unit.
