Atlantic International Bank Ltd. is taking its last gasps as the Central Bank stripped them of their banking license. Now for context, since late last year, we have been following the evolving situation with Atlantic International Bank Ltd. and its demise. This is after the Federal Trade Commission in the US named the bank among other groups in a civil complaint. The complaint names Sanctuary Belize as a massive real estate investment scam - which has defrauded hundreds of US investors. The FTC says Atlantic International, assisted and facilitated in the Telemarketing Sales Rules violations (for Sanctuary Belize) and that the offshore bank knew, or reasonably should have known what was happening. While the bank denies any involvement in any wrongdoing, it wasn't enough to gain any sympathy from the FTC. So the bank turned to the Central Bank for protection as it has been winding down operations. Well the Central Bank has pulled the plug on the bank by revoking the it's banking license. Here is how the Governor of the Central Bank Joy Grant put it.
A. Joy Grant - Governor of Central Bank
"Today, 12th April, the Prime Minister as the Minister of Finance on the recommendation of the Central Bank of Belize, revoked the unrestricted A class international banking license of Atlantic International Bank. This revocation is in accordance with sections 25 and 27-1 of the International Banking Act Chapter 2 67 revised edition 2011 of the substantive laws of Belize. Atlantic International Bank has experienced challenges meaning it's liquidity requirements due it appears reputational damage caused by being named in the said proceedings. Atlantic International Bank experience and unusual and increasing level of withdrawal request, this led to customers facing extending delays in accessing their funds which in turn led to a worsening of the bank's liquidity position. In response to the said challenges, the Central Bank placed Atlantic International Bank under enhanced supervision on 13th November 2018 and subsequently issued 2 sets of remedial actions aimed at preserving the bank's capital. The Central Bank closely monitored the execution of these actions through increased reporting requirements and continuous dialogue. The Central Bank has activated its internal resolution plan and continues to work diligently towards the timely winding up of Atlantic International Bank in accordance with the statues provided under part 11 of the Domestic Banks and Financial Institutions Act. The Central Bank has appointed a liquidator, Mr. Julian Murillo. He will have full power and authority over the operations of Atlantic International Bank as prescribed under the laws of Belize."
In a release sent today it says "This is the second bank in the international banking sector to have its licence revoked in the last ten months. However, the circumstances leading to the revocation of the international banking licences of these two banks are different and cannot be attributed to any issues of general application to the nation's financial sector." It continues by saying "the Central Bank reminds the public that it has a mandate to protect depositors and it is taking steps to do so. Further, the Central Bank continues to be extremely vigilant in its oversight responsibilities to ensure that Belize's financial sector remains vibrant." And while the Central Bank is putting the best spin it can on a bad situation - the likelihood is that - because of the size of Atlantic International's loan portfolio there is contamination with the‚ domestic banking sector - and the cleanup is expected to be - as they say - like eating soup with a knife - messy and slow.
Email
Print