Governor of The Central Bank of The Bahamas John Rolle told Guardian Business that the bank is actively monitoring and assessing an "evolving" situation concerning the possible deterioration of relationships between correspondent banks abroad and banks in this jurisdiction, after the International Monetary Fund (IMF) made reference to some concerns over any major disruption to the relationships.
The IMF raised the concern in a report it issued after visiting New Providence following the passage of Hurricane Matthew.
"While the loss of correspondent banking relationships by some domestic and international banks has not resulted in major disruptions so far, a further deterioration remains an important challenge to economic development and financial stability," the IMF said in its report.
Rolle said the Central Bank recognizes the importance of safeguarding access to correspondent banks, adding that the bank has various initiatives planned that begin to address the concerns raised by the IMF.
"There is no explicit reference or acknowledgement of actions of Canadian banks in the report," Rolle said.
"The providers in question are dominant U.S. banks that provide foreign currency payment settlement services for banks in our jurisdiction.
"We also believe that the situation is still evolving and needs to be actively monitored."
Rolle said The Bahamas' strengthening of its anti-money laundering safeguards bodes well for the protection of the relationship between Bahamas banks and correspondent banks.
Last week the government passed a bill on automatic financial account information exchange, that will bring the country in line with Organisation for Economic Co-operation and Development (OECD) standards.
Rolle said some of the interventions have to occur at a Caribbean-wide level.
"In this regard, regional central banks are working closely together on strategic responses."

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