FCIB CEO satisfied with AML regime, admits no 'fail-safe'

Thu, Jun 18th 2015, 10:18 PM

CIBC FirstCaribbean International Bank (FCIB) CEO Rik Parkhill said the U.S. Department of Justice has not asked his bank to cooperate with any investigations in connection with the increasingly complicated and wide-reaching bribery, tax evasion and money laundering scandal connected to the world soccer body Fédération Internationale de Football Association (FIFA). The FIFA corruption scandal has led to multiple arrests and indictments, and also to revelations that six Caribbean banks – including FCIB (Bahamas) – were among the dozens of banks used in the scheme. Parkhill said the bank works closely with regulators in the region, and cooperates with all investigations and said he is reasonably satisfied with the FCIB regime.

“There’s always room for improvement, but I think we’re reasonably satisfied our processes are being followed and are in place,” he said. “I don’t think there are any policies and procedures that are absolutely fail-safe, but I think we’re reasonably satisfied that we have the right regime in place.”

Parkhill noted that FCIB has an ongoing review of its policies and procedures associated with money laundering and fraud, and insisted that – in his view – the bank has made “substantial strides over the last three to four years in making sure that we have the most robust regime in place”. He admitted to “certainly” being concerned when “any financial institution” is linked to FIFA or any other organization where there are allegations of misconduct, and reiterated that the bank is doing a thorough review.

“But it does impact on not only our bank’s reputation but the FIFA issues aren’t just Caribbean issues. There are a huge number of onshore banks that FIFA used as well, outside of the Caribbean,” he said.

The indictment in United States vs. Jeffrey Webb, et al, in which many senior FIFA officials and others have been charged with multiple counts of racketeering, money laundering and wire fraud involving $150 million, lists six Caribbean banks as having completed wire transfers of large sums of money for the defendants, including FCIB (Bahamas).

The other banks are Barclays and Fidelity (Cayman Islands), First Citizens Bank, Intercommercial Bank and Republic Bank (Trinidad and Tobago). As noted, Parkhill confirmed that FCIB (Bahamas) has not been asked to cooperate with any U.S. Department of Justice investigations and at last report, none of the banks had been charged with any crime or regulatory violation.

The Bahamas
According to the indictment, a representative of CIBC FirstCaribbean International Bank (FCIB) in The Bahamas, where “Co-Conspirator #1”, identified as the general secretary at the time of the Confederation of North, Central American and Caribbean Association Football (CONCACAF - which could only have been Chuck Blazer) held an account, flew to New York, landing at John F. Kennedy International Airport. After arriving, the bank representative took custody of a check for US$250,000 drawn on an account held in the name of the Caribbean Football Union (CFU) at Republic Bank in Trinidad and Tobago.

The bank’s representative subsequently traveled to The Bahamas and on or about May 3, 2011, deposited the check into Co-Conspirator #1's account. It is not known if FCIB ever filed a suspicious activity report in relation to this or other related transactions. As noted by Guardian Business, Blazer admitted in his plea agreement with the U.S. Attorney’s Office that he had an account at FCIB (Bahamas) and agreed to pay a penalty of half the value of the account.

Click here to read more at The Nassau Guardian

 Sponsored Ads