Caricom mulls economic threats, prospects

The Caribbean Community held its 37^thRegular Meeting of the Conference of Heads of Government last week in Guyana, with officials there discussing threats to the region’s economic development and how to increase trade and facilitate movement of people among the Caricom’s participating members.

One of the major topics at the meeting was international banks’ “de-risking” in the Caribbean, a policy where they either limit or cease business altogether over fears of “high risk” clients engaging in money laundering and other criminal activity.

Rather than trying to conduct due diligence and manage such risks, many international banks are attempting to play it safe and avoid risk altogether, the Caribbean Development Bank noted in a study published in May.

De-risking could be taking place in the Virgin Islands, as documents recently obtained by the Beacon show that CIBC FirstCaribbean International Bank is closing the accounts of at least 11 VI-basedtrust firms with branches in Panama.

Government officials at last week’s Caricom meeting said de-risking is discriminatory against Caribbean countries, according to the conference’s communiqué.

“In expressing concern that there was little progress on resolving the issue, heads of government agreed that Caricom would continue its robust and unrelenting advocacy on the issue,” the communiqué states. “Heads of government also agreed to host a global stakeholder conference on the impact of the withdrawal of correspondent banking on the region.”

Single market

Meeting attendees also discussed the ongoing efforts to establish a Caricom single market, within which businesses would be able to trade freely across borders without being subject to tariffs and other trade barriers.

The communiqué does not report significant progress on this goal, but notes that officials will review efforts to establish the free-trade zone at the “inter-sessional meeting” next February.

In the meantime, the heads of government will continue to educate the public about the benefits of such an economic system, according to the communiqué.

The VI, an associate member of Caricom, is not one of the 12 members committed to participating in the single market.

Travel

Conference attendees also discussed efforts to better facilitate travel within the region.

This goal has seen more progress than the single economic market, according the communiqué, as officials at the conference noted that “the overwhelming majority” of travelling citizens are moving throughout the Caricom without hindrance.

“They, however, urged member states to comply with the relevant decisions taken by the Community and the rulings of the Caribbean Court of Justice, and take all appropriate measures to give full effect to the free movement regimes,” the communiqué states. “They reaffirmed the principle that persons were to be treated with dignity at ports of entry.”

The organisation is scheduled to hold a meeting on Sept. 30 to further discuss the challenges experienced by Caricom nationals travelling throughout the region, the communiqué states.

The VI was not among the 11 Caricom members listed on the communiqué as attending the conference.

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