Caribbean officials have warned that a “pernicious, secret system” for cross-border payments will emerge if de-risking continues, with the region on the cusp of being cut off completely from the U.S. banking system.
Ron Sanders, Antigua and Barbuda’s ambassador to the U.S., told a meeting of international authorities last week that “all but one” U.S. bank has now terminated its services in the Caribbean.
“The one bank that remains has also given notice of its imminent departure,” he said.
Sanders warned that if remittance companies and correspondent banks are no longer able to access the international financial system, cross-border payments will inevitably be driven into unregulated and unsupervised channels.
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