BVI chief minister challenges bankers to meet global regulations, standards

By ANGELA BURNS-PIPER
Saturday, May 21st 2005


TORTOLA - BVI Chief Minister Orlando Smith has issued a strong challenge to banking supervisors from around the region, urging them to be diligent in complying with international regulations, guidelines and minimum standards.

He was speaking at the opening ceremony of the 23rd annual conference of the Caribbean Group of Banking Supervisors, which opened on Thursday at Long Bay Hotel.

"Permit me to challenge you, therefore, not only to revisit the regulatory processes and address the challenges we face as a region, but more important that you get them right," he told the participants.

The chief minister said the opening of borders and financial systems has exposed the region not only to greater business opportunities, but also to the risks associated with an integrated global financial market.

"Deeper integration of financial institutions across the region poses special problems for the control of the financial system against abuses such as money laundering, financing of criminal and terrorist activities and the circumvention of rules and standards," Smith said.

He said in order to remain competitive in the global financial market, jurisdictions that are considered major international finance centers cannot ignore the new round of international scrutiny.

The BVI leader said supervisors must be equipped with the necessary tools to ensure that the region is able to meet international requirements. "You are called to ensure that your regulatory modes are practical, pragmatic and proportionate."

The chief minister said financial abuses can threaten the credibility and undermine the integrity of the international financial system, adding that the consequences affect countries at every stage of development in both the onshore and offshore financial sectors.

The two-day conference had the theme "Revisiting Regulatory Processes in the Face of Regional Challenges and Risks."

The Caribbean Group of Banking Supervisors was formed in 1983. It is tasked with enhancing and coordinating bank supervisory practices in the region and bringing them in line with international practices.

Its 14 members include Aruba, the Bahamas, Barbados, British Virgin Islands, Cayman Islands, Guyana, Haiti, Jamaica, the Netherlands Antilles, Suriname, Trinidad & Tobago, Turks & Caicos and the Eastern Caribbean Central Bank.

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