Choice Bank - it's an offshore bank on Marine Parade. Offshore means it's not like a regular commercial bank - where you go and cash a cheque; it offers financial services to international clients. But, this week it informed customers that it's in a liquidity crisis. An email to customers says, quote, "Due to recent developments involving the prepaid card component of our international banking business, Choice Bank Ltd. ("the Bank") has been forced into a temporary liquidity constrained position...the Bank has taken the decision in its view as a matter of necessity, with immediate effect, to temporarily suspend all withdrawals from deposit accounts with the Bank and other outbound payment activities…until the Bank and/or its relevant regulatory authorities are satisfied that such suspension is no longer required." End quote.
Sounds like a bank that's about to tank, but Choice says it maintains a strong balance sheet with accumulated retained earnings in excess of $26 million US dollars. So what's the problem? Well, the issue seems to be regulatory - and all the strictures imposed on financial service centers by oppressive anti Monet laundering regulations.
We could not reach the Central Bank for comment.
Email
Print