While CIBC FirstCaribbean International Bank has said it will not accept web shop proceeds, Prime Minister Perry Christie said yesterday Bank of The Bahamas (BOB) and at least one other bank will.

Responding to a reporter's question on Wednesday, CIBC FirstCaribbean Managing Director Marie Rodland-Allen said, "As it stands right now, we, along with other major Canadian banks, have a decision that we will not be accepting those funds.

"...It's actually a bank policy. Most of the Canadian banks have a policy in terms of online gaming, so it is just a prohibited activity from our parent companies."

Christie said when he met with bank officials they expressed that their position on doing business with web shop operators was being led by their parent banks.

"I met with the banks," he said.

"The banks indicated that they were being driven in terms of the acceptability of web shop funds and casino funds by their corresponding banks.

"In the case of Bank of The Bahamas it was J.P. Morgan. J.P. Morgan has certified that Bank of The Bahamas can receive those funds.

"The Royal Bank of Canada has told us that funds processed by Bank of The Bahamas from web shops could be acceptable to them.

"With respect to the other banks, I can only assume that they have done complete checks on all of their clients' accounts [whose] funds are reposed in; that they know exactly what they are saying, and it is their call.

"But when they met with me, they spoke about their corresponding banks and having a concern that those banks would not approve.

" J.P. Morgan, one of the world's strongest, [has] indicated [it has] no objection to Bank of The Bahamas."

The prime minister also suggested the banks' policies apply to casinos in the country. The 2014 Gaming Bill passed in both chambers last September, paving the way for casinos to offer interactive gaming.

"Interactive gaming is legalized for casinos and the question is where are those monies being banked," Christie said.

The government took to great lengths to ensure amended gaming legislation to regulate the web shop sector was designed to banks accepted proceeds from legalized web shop operators.

Ahead of the government bringing web shop legislation and regulations to Parliament, Attorney General Allyson Maynard-Gibson liaised with the Financial Action Task Force (FATF) to review its plans and achieve that goal.

Prior to the government meeting with the FATF, several banks, including RBC (Bahamas) and Commonwealth Bank, said regularization alone will not address the problems that stop the banks from being able to open accounts on their behalf.

Throughout the regularization process, the government consulted international and local gaming specialists to advise it on policy, procedural and tax measures to include in the amended legislation.

The Gaming Board accepted applications for web shop licenses from 10 web shops last week, according to Tourism Minister Obie Wilchcombe.

Click here to read more at The Nassau Guardian