Caribbean Banks Shunned

Those active in the Caribbean may need to rethink their banking requirements. Increasingly, local banks are losing access to the global payments system because of severed correspondent-banking relationships. The major international banks see little benefit—and disproportionate risk—in keeping their Caribbean ties in place. While there are pockets of money-laundering concern, the ricochet effect has been dramatic. The World Bank reports that almost all Caribbean jurisdictions have reported significant-to-moderate declines in their correspondent-banking relationships. The front line of this risk aversion is a collapsing remittance business, but businesses and high-net-worth individuals are also being impacted. The answer for many of these names may lie in the cryptocurrency industry, but the transition will frustrating until Bitcoin, Ethereum, and others become more widely embraced.

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