Caribbean banking group to add ‘foreign’ firms
The Caribbean Association of Banks (CAB) plans to increase its membership by adding non-indigenous financial institutions.
It’s one of the key priorities of new CAB chairman Carlton Barclay, who said it is necessary for the organisation to play a more active role in the formation of policies that directly impact the financial sector.
CAB currently has 58 members, all originating within Caricom, with a combined asset base of US$36.4 billion.
“Speaking with one voice for all the financial institutions in the region will strengthen the CAB,” Barclay told 450 delegates and guests at the organisation’s 39th Annual Conference at the Montego Bay Convention Centre.
Formerly the Caribbean Association of Indigenous Banks, CAB changed its name in anticipation of the push to broaden its membership to embrace the non-indigenous financial entities operating in the region.
“The CAB is as strong as its membership,” said Barclay, who replaced Carole Eleuthere-Jn Marie as chairman at the meeting. By expanding its membership base, the organisation will become a more effective advocate.
The US Foreign Account Tax Compliance Act (FATCA), which becomes effective in January, is an example of an issue that requires a strong and unified regional approach by financial institutions, he said.
Under FATCA, financial institutions which identify any of their customers as ‘US Persons’, as defined under the Act, will need to supply information on them to the US tax authorities.
Prime Minister Portia Simpson Miller told the conference that she recognised the challenge that the new rule poses under the clauses of Banking Acts in many Caricom countries. She advised CAB members to “indicate ways in which we can assist with achieving FATCA legislation which is not detrimental to the stability of our institutions.”
To tackle issues such as this, Barclay said, “We must empower the sector through linkages with financial organisations from outside the region whose objectives are consistent with our aims.”
“What we need to do is to speak with one clear voice on behalf of the members,” he said.
The FATCA legislation proved a central theme at the conference, which was one of the largest in the organisation’s history.
It attracted representatives from extra-regional financial institutions and service providers in Canada, India, the Netherlands, Nigeria, the UK and the US.
