De-risking most significant challenge to banking in ECCU – PM Skerrit

Skerrit de-risking is a significant challenge to banking in the ECCU

Prime Minister of Dominica and new Chairman of the Monetary Council of the Eastern Caribbean Currency Union (ECCU), Roosevelt Skerrit has said the most significant challenge to banking in the Eastern Caribbean Central Union (ECCU) at this time is the practice of de-risking by correspondent banks.

Skerrit took on his new role in the rotating Chairmanship on Friday from the outgoing Chairman, Prime Minister and Minister of Finance of Antigua and Barbuda, Gaston Browne during a ceremony at the State House on Friday.

“Arguably the most significant challenge to banking in the ECCU at this time is the practice of de-risking by correspondent banks,” he said while addressing the ceremony.

Skerrit stated that the Central Bank, in collaboration with key partners, will continue its strong advocacy to preserve correspondent banking relationships in the ECCU.

“These relationships facilitate essential banking services such as wire transfers and cross border credit, and debit card payments,” Skerrit noted. “Without these services our trade will be disrupted, our economies would be crippled and our development would grind to a squishing halt.”

Skerrit mentioned further that de-risking is a major concern for every country and, “for every bank in every country.”

He said, however, in the region the indigenous banks are at greatest risk and he called on citizens to follow guidelines given by banks.

“I issue a call to all the citizens of the ECCU to adhere strictly to the guidelines provided by the banks and to ask also that we do not use social or any other media to disseminate stories that could affect how our regional banks are viewed by the international community,” Skerrit stated. “We have to work together to ensure that we put an end or halt the process of de-risking in our region.”

Skerrit said the matter should never be seen as a political issue.

Furthermore, he stated, for this reason, the ECCB has set economic transformation as a focus for its strategic plan for the period 2017 to 2021.

Skerrit went on to say that in September the bank will formally launch its strategic plan.

He commended the Governor of the ECCB, Timothy Antoine for his foresight in commissioning the preparation of this plan and other staff for ensuring that the plan was committed.

“I look forward to very strong results,” Skerrit stated.

He noted further that the Monetary Council is fully committed to playing its part in the region.

“It is with this high level of commitment and with the eagerness to make life better for citizens of the Eastern Caribbean Currency Union that I assume the Chairmanship of this Council,” he said.

Skerrit said from the vantage of the Monetary Council, there are three economic challenges at this time.

“One, strengthening the stability of the financial sector. Two, addressing the deficiencies in the flow of credit to key economic drivers and three, enhancing long-term growth potential and competitiveness,” Skerrit explained. “Over the next year, the focus will be on addressing these challenges.”

Meantime, former Chairman Browne expressed his gratitude to the Governor and the entire staff of the ECCB for their support during his tenure.

“It’s my distinct pleasure to hand over the chairmanship of the ECCB Monetary Council to Roosevelt Skerrit,” he said. “I remain committed to working with your incoming chairman and other members of the Monetary Council and [to] press forward in the service of the people of the region.”

The Monetary Council is the highest decision-making authority of the ECCB. It comprises the eight ministers for finance from each of the participating governments.

Each minister designates an alternate to serve on the Council in his absence. Chairmanship of the Council is rotated among the members in alphabetical order on an annual basis.

 

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55 Comments

  1. Reader turns writer
    July 24, 2017

    After the ECCU address: Skerrit was overheard telling his partners in crime of his Neo-DLP/DFP hybrid.
    “Fellers don’t look now but I think we’re being watched.”- me and allyou fellers spending too much and building to many houses your wives & concubines travelling too much. We have to scale down substancially okay fellers?” ” All our big & little secrets are in the open. Nanthan already screw up. Telling or Iranian brother don’t send the funds thru his gas station account send it to Nkomo’s Client account ,it is safer there.

  2. LifeandDeath
    July 24, 2017

    That Practice of making anybody Minister for Finance is a more serious and real risk to the economic development of the ECCU.
    Some of these Elected PMs (default Finance Ministers) are not trained at all in Finance or anything else, but they are responsible for making decisions at the highest level that will affect real lives on the ground. Dominica right now, has the most misfits in Cabinet than any other time in our history.

    On the other note, if we are transparent with our bank dealings we would have nothing to fear for de-risking. Cut the Krap!!

    • Affa
      July 25, 2017

      Simple English, rotation in alphabetical order. Irrespective of whom is Prime minister. You want it in Patwa?

  3. Doc Love
    July 23, 2017

    Isn’t it to late for you to be talking about de-risking. You are the one who popularized de-risking. Dominica has had many governments, we have had many banks and other financial institutions over many years, we were never involved in such a deceptive manner of doing banking business, until you became Prime Minister. Regardless to what happens to Dominica in the years to come, you will always be known as the de-risking prime minister. That will be your legacy, you will never succeed in wiping this stain from the leadership.

  4. Money-laundering
    July 23, 2017

    Dominicans and countries in the Eastern Caribbean MUST ask Skerritt why did the Royal Bank of Canada return the $250 plus million dollars to Skerritt’s DLP Gov’t? was it because of the risk, that the laundered money, or money from those passport sales, would cause?

    Royal Bank refused that kind of money because of the risk involved, Why did Skerritt inform us that the National bank of Dominica accepted that money? isn’t he afraid of De-risking? Dominicans do you believe Royal Bank just refuse that business, returned that huge sum of money, and did not tell Skerritt why?

    Skerritt now talking of de-risking? Who warned you all, long time?

    Dominicans Gov’t did not furnish the bank with the reports ‘due diligence’ that the bank asked the DLP Gov’t for. Why?

  5. viewsexpressed
    July 23, 2017

    Skerrit is in no positon to lecture to and address us prominent, decent people about benefits or about De-risking as it relates to banking etc. Recall that Skerrit is not there addressing as an intellectual, he is there by accident, or opportunity only because the seat rotates from country to country and he is just fortunate to sit there and read a script that may have been prepared for him that he may not know anything about, politically, financially, morally and decently. We would like to hear him live outlining the benefits and merits he just read there of this activity.
    I really wonder if he knows what he is reading because we are not sure in Dominica hat he understands, let alone the acumen and ability to comprehend the issues of social – economic development of a poor and ailing economy, a country growing in poverty. We need a lecture on how best not to corrupt an already ailing economy.

  6. FORKIT
    July 23, 2017

    the cause of risk is the documents i read pertaining to wire transfers and emails that directed treasury funds to personal accounts…. those are the risk…. to eliminate that risk FIU should arrest the perpetrators and charge them for money laundering….. what say you PM

  7. Albee
    July 23, 2017

    If only the reporter would first explain to the laymen what is “derisking” then one would be more apt to contribute to this article. Please enlighten this fool. What is the PM talking about?

  8. Anthony P. Ismael Free Pampers Minister
    July 23, 2017

    Great point, however who is the intended audience for this message from the Prime Minister. I wish he could have identified specific sectors, banking products, business ventures and regulatory fines that have been imposed on the region and their effect on our banking sector. We know that the US has been imposing fines for conducting business with “Black-Listed Countries,” such as Iran. Additionally, increased fines and regulations is another quiet attempt to kill outside competition. Given this current President’s America First Policy, we can expect more of the same.

  9. 1979
    July 23, 2017

    “I issue a call to all the citizens of the ECCU to adhere strictly to the guidelines provided by the banks and to ask also that we do not use social or any other media to disseminate stories that could affect how our regional banks are viewed by the international community,” Skerrit stated. “We have to work together to ensure that we put an end or halt the process of de-risking in our region.”

    MISTER IS THE GREATEST!!… Mister really believe everybody still in the dark eh…shame…

  10. Gave up D/can citizenship,goat too!
    July 22, 2017

    How does this guy feel when he has to address an issue he is a contradiction to? Am not here referring to his dealings but his incompetence.The man cannot even speak clearly let alone go in-depth on any topic.
    Someone asked if he wasn’t a teacher wasn’t Earl Williams a teacher too?
    Anyone with an iota of honesty, will admit DA’s standards have gone to the dogs over the last 21/2 decades,
    No ifs buts nor maybes.

    • LifeandDeath
      July 24, 2017

      That’s second nature to the man..A dead conscience feels no Moral obligation.

  11. CIA
    July 22, 2017

    Congratulations another means to fatten di Belly PM

  12. Taking the ECCU 4 a ride
    July 22, 2017

    when I was a teen in the very late 70’s: There was a neighbor who pushed grass from his home. Every body on the block knew where to get a spliff/a little eyes red as we said back in the day.
    Then, the brother deceided to become a born again brother but still pushing his grass.
    So the boys on the block decided to confront him on the non-compartibility of religion and drugs.
    The brother’s response to us was ” Am almost to the end of my bag so when it’s done am done.”
    Now, our dear P.M as silly as he is to many is smarter than we give him credit for. He has made his monies and all’s well taken care of. Remember Instru told us we have to learn how to cover our tracks backin 1998?
    skerrit is now tElling us about how to guard against/de-risking.
    Am LMAO real loud like the cabal et Al are doing. They are saying from the other end of their mouths through the new chairman of the counsel the /their horse has already left the stable. hahahahahaahahahahah.
    SOMETHING TO THINK…

    • Reader turns writer
      July 24, 2017

      Taking the ECCU 4 a ride, lol I love how U see it.
      I know the ads and love em!
      These guys in office( opposition included) think that there aren’t D/cans who are above the average in the thought process. Your analogy speaks volumes.
      DA likewise the Region continue to accept mediocracy & DA’s case with a clown at the head is classic if the UWI wants to teach Buffoonlogy

      • Reader turns writer
        July 24, 2017

        Just4 laughs but serious stuff not Taking the ECCU 4 a ride was that amusing author of the TV ads analogy. My Bad.
        Am proud of some of our folks being excellent in analogy. We have talented and able folk so why do we keep electing bufoons every 5 yrs?.
        Maybe Slinger Francisco said it best ” We like it so” Francisco Dodds -Telemaque alias FET would agree. He (FET) frequently makes good points.
        DA is in trouble as we have to choose between the corrupt and the arrogant. We are in a bad place. God died, so did Karl Marx, Engel, Mamo , Rosie and ,Pierro. Parra retired and am not feeling well myself

  13. Just4 laugs but serious stuff
    July 22, 2017

    There’s a frequent ad on US Tv stations with a cranberry ad in which an older guy(grand pa to the younger guy in the ad who once told of the benefits of cranberry juce. In that particular ad the grand pa says” Cranberry has been used for centuries as a cleanser, antioxidant etc etc ad it’s an old medicine” The youngster belted: ” You would know!”
    reading Medard’s address to the EUUC this week could not have been more corresponding to the aforementioned ad & quote ” You would know”Prime Minister of Dominica ,Roosevelt Skerrit has said the most significant challenge to banking in the Eastern Caribbean Central Union (ECCU) at this time is the practice of de-risking by correspondent banks. Medard know a thing or two about offshore banks etc which his former health minister knows a thing or two about also. There’s another ad on TV by farmers whose motto is farmers we know thing or two.

  14. #1
    July 22, 2017

    Skerrit?
    Skerrit?
    Scare it?

    The best example you can give of de-risking is a FULL disclosure of the reasons given by the Royal Bank when the CBI account was closed.

    I thank you!

  15. Abc
    July 22, 2017

    Impressive setting. Real top class. Decor with anthuriums looks lovely. Thumbs up!
    Sooooooooooo
    Can this be translated to all of roseau…esp the nasty streets and buildings?

  16. July 22, 2017

    Take a good look again haters that’s our PM. and doesn’t look any thing like Linton

  17. Dr Clayton Shillingford
    July 22, 2017

    There is no mention of how and the basic causes as to how derisking came about. It is not possible to resolve this matter and the attendant risks and complications in wire transfers etc without addressing the causes directly.. The causes..concerns with corruption, money laundering… cannot be swept under the carpet..

  18. freedom fighter
    July 22, 2017

    Boy, that cabinet really have some blockheads. When Skerrit say jump all they asking is how high.

  19. Willie
    July 21, 2017

    If derisking is such a serious challenge, is this all Mr. Skerrit has to say on the matter?
    Surely correspondent banks are not going to be influenced by idle chatter on social media!
    It is truly amazing that this is the level of discourse at a Finance Ministers meeting.
    Did any technocrat have any input in this speech?

  20. %
    July 21, 2017

    Was Skerrit an english teacher?Why he just cannot take an issue and develop an argument?Skerrit if derisking is the most significant challenge to banking in the ECCU,can you please TELL US WHY?
    Is it because CBI in the OECS is sttracting dirty money?Is it because of money laundering?Is it because of the TYPE OF CHARACTERS,who own our passports?You think its tohose labourites who clap at ou foolishness,you are addressing man! No wonder you just wont debate,you sound so limited!!!
    SKERRIT MUST GO
    SKERRIT MUST GO
    SKERRIT MUST GO NOW!

    • %
      July 21, 2017

      those
      Who clap at your foolishness

    • July 21, 2017

      You stated why derisking is a challenge based on your political agenda. Belize baking system is in shambles and it has no CBI program.

    • winston warrington
      July 22, 2017

      There are some things you are expected to know.. And if you don’t , stop the high school criticism. Major banks like Scotia and Barclays have run away because they were no longer as profitable as before. The local banks were forced to establish correspondent relationships with major overseas institutions to facilitate financial transactions ; but the costs to the host banks are unacceptably high – thus the need to break off the relationships. Show some respect for your PM. The largest amount of money laundering takes place in the US; the fourth largest agricultural crop produced in the US is marijuana; money laundering is being investigated by the US government in comnection with acquaintances of the current administration as I write. Stop beating on the most productive politician in the history of the Republic!

      • %
        July 24, 2017

        Winston stop your idiocy.You are blank slate about de-risking.Its cheaper for banks to avoid risks Winston,so if they do not know the activities of their customer,or their CUSTOMERS CUSTOMER,they will ask you to leave.Stop playing smart when you are blank.Dont tell me about the USA re money laundering,I am concerned about Dominica,my badly broken country.It hypocritical fools and “SOO TE WER” like you that have Dominica in this quagmire.
        SKERRIT MUST GO
        SKERRIT MUST GO
        SKERRIT MUST GO NOW!

    • Let The Truth Be Known - Original
      July 22, 2017

      As you live, you will continue to be a malicious critic because you a non-supporter of DLP and you will die one which, in the end, will not be good for you.

    • Cyril Volney
      July 23, 2017

      MORON!

      • Me
        July 24, 2017

        It takes one to know one Cyril!

    • Anon
      July 23, 2017

      Although some of his followers will be disappointed they don’t refer to him as doctor…ha ha ha, all-u will have your turn to run this country into the ground with that attitude pal. It’s no wonder ppl do not vote all-u back to do ‘on Ti bagai tou pa tou’. Skeritt dem do that better already. With that attitude it seems not 2018, u not well organized but change attitudes and earn my vote for 2023 otherwise see u-all maybe 2028 if Freedom party don’t make a comeback and lets u in.

      • Anon
        July 23, 2017

        Continued: I’m just tired of reading local politics crap…..see Steve Forester’s comment below, get a grip.

    • UDOHREADYET
      July 23, 2017

      Your lack of knowledge an understanding and inability to disseminate clear information is not a reflection on the person giving the information.
      You should ask yourself why it is that you cannot understand what is spoken and seek to educate yourself in a manner you can comprehend.

  21. July 21, 2017

    Derisking is really big deal, and it’s an especially serious problem for offshore banks, because it’s primarily part of the U.S. attempt to shut down competition for their own banks in international financial services.

    • Malgraysa
      July 21, 2017

      Mr. Foerster, it is not really such a big deal if you are open about the sources of your money streams. I do agree that the U.S. is greatly concerned with missing out on fiscal income of such monetary traffic but it is perfectly legitimate to be concerned about financing of crime, be it prostitution drugs, arms, human trafficking etc. or the compromise of security.
      As it is we are a honeypot for suspect money as I can testify from personal experience. Trust me, one can live just as well on $1 million as $2 million and enjoy a fitfull nightrest to boot.

      • July 24, 2017

        Malgraysa, it’s rare that I disagree with you, but I think you’re underestimating the threat derisking poses to our entire financial sector, not just the offshore part. I agree that it’s legitimate to be concerned with the proceeds of organised crime, but I don’t think that’s the real motivation of U.S. policymakers.

    • Name not necessary
      July 22, 2017

      De Denizen speaketh on derisking lol

    • Cyril Volney
      July 23, 2017

      On point.

    • 1979
      July 23, 2017

      Steve any Country or Corporation must take actions which are in their best interest. especially if their interests are being threatened by a competitor with questionable backing or an unfair advantage. again, are we saying that we should not be concerned about illegal currency entering the banking system?? You said “primary part” are you saying that the claims of money laundering and corruption in Caribbean institutions are a figment of our imagination or that its not a problem??

      • July 24, 2017

        I’m sure it is a problem. But it’s a drop in the bucket compared with how much money gets laundered in South Florida, and no one is suggesting their banks get closed. And that’s because it’s the Americans here who have the unfair advantage.

      • discrimiatemuchdno?
        July 24, 2017

        And I’ sure that is something for American’s to remain vigilant about… As should the ECCU and other Financial Institutions in the Caribbean and Latin America. regardless of who interests is or is not at stake we all have a common interest in combating money laundering and Corruption no matter where it takes place.

      • discrimiatemuchdno?
        July 24, 2017

        regardless of comparison.. it is a problem….and that is the salt of it…yes we can argue about who are the biggest perpetrators of money laundering, but that does not take away from the importance of combating this form of white collar crime. We have to be careful in our argument, not to seek to justify corrupt practices by making comparisons…

  22. JOE
    July 21, 2017

    The CFATF needs to be bold and tailor cut policies that are home grown and stop accepting all the crap FATF throw down their throat!!!!

    Mr. PM i feel your concern!!!!!!

  23. Skerrit I Voting
    July 21, 2017

    Well well we have a real states man here. Take a look. That’s our PM. Strong results will come under your watch.

    • Han
      July 21, 2017

      Sorry that is your PM- Not mine or ours….

    • Heeeheeheeheeeheehee-donkey bray
      July 22, 2017

      Chatuyeh-nous tickle us ,Skerrit U voting abar plat pie nous avec abar bois-nous.heeheeheeheeheehee
      ………..!

  24. Skerrit I Voting
    July 21, 2017

    Congrats PM.

    • viewsexpressed
      July 23, 2017

      LOL,,,LOL….”Congrats Pm”….lol…lol…… :mrgreen: :?: 8-O :-P

  25. July 21, 2017

    ya, because of shaddy deals

    • Let The Truth Be Known - Original
      July 22, 2017

      By whom? Tell us more.

      • July 25, 2017

        Skerrit and his gang

  26. FORKIT
    July 21, 2017

    skerrit have guts to talk about de-risking…. mister really is a great deveiver

    • Me
      July 21, 2017

      Forkit, pray, what is a deveiver? Seriously, I can’t make that one out.

    • Let The Truth Be Known - Original
      July 22, 2017

      You need to brush up on your spelling. Check the last word.
      I can tell you many people are deceivers of whatever sort. They do not have to be politicians. In their personal lives they are deceivers. Some come on this Website with their critical views and project that they are goody two-shoes.

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