So we will just attempt to survive it and I will attempt to monitor it. All eyes are on Venezuela right now, and Venezuela's effect on the Caribbean nations from energy to trade and other things are very concerning, specifically Eastern Caribbean nations. So, I think the concern that I have is, all 6 countries of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance known as ALBA, that includes efforts to promote local cooperation and relieve hardship; so to what degree have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I believe I can answer that question tremendously.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant problem if you will of the area. Venezuela is a country that remains in collapse. Financially, some are stating it is no longer a democracy. It is a country that has severe and enduring internal problems which it is going to take years to get beyond. And so, the relationship that Venezuela has established with https://writeablog.net/rondoc1de9/some-enable-ten-years-to-be-settled a number of nations of the Caribbean in great times has ended up being stretched, because the largesse that Venezuela has been able to honestly give away or to supply a concessionary on concessionary terms has been much constrained in the current environment.
I guess what I would state remains in the current environment, because of the difficulties that Venezuela is having and frankly since of the chances that we have in the United States through the whole revolution of energy that we have seen in our own country over the last a number of years, we have an opportunity to come into the Caribbean as a partner and state, look, you understand the programs and the activities that you maintenance calculator might have been making with Venezuela are no longer appropriate and we can supply the very same things that you need without the political or without the ideological overhang that you might have had formerly - What is a consumer finance account.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to step into that space with those nations? I do not understand the response to that. Mr. Farnsworth. Well, I believe in the current environment we need to do some foundation. We need to do some spade work. I mean, look, Petrocaribe was an extremely effective program and we understand why. I mean, it was prompt, it offered something that the leaders needed when they required it. It was symbolic. It was really, very simple to describe to people. I mean, we are getting oil from Venezuela.
A Biased View of What Is The Oldest Car A Bank Will Finance
It was on one concern. And I think sometimes, when the United States engages with the countries of the Caribbean, we have a great deal of well implying programs and wonderful ideas, but they are watered down, right? Not misguided, but diluted in regards to the effort and the focus. Under Petrocaribe, it was one item easily discussed, extremely symbolic, and individuals said Venezuela's our friend - Which of these is the best description of personal finance. And I think what we need to do much better from the United States' perspective is to construct that level of trust through a continuous continual engagement with the area so that people can say, look, we do trust you. What does etf stand for in finance.
Mr. Duncan. I personally believe energy is a great chance for us, no doubt about that. Let me look into money laundering and terrorism funding a bit. There is a big push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking organizations. Does that policy work to lower cash laundering and chances for terrorist organizations to access the financial system? Which is most likely to Sally. Ms. Yearwood. In a lot of methods it does the opposite, because when U.S. banks vacate the region what you have actually developed in reality is a space and that becomes filled by other organizations.
So, what is being created is a circumstance where there is more opportunity for terrorist financing or something to fail and someone to make use of that space. So I would state that the U.S. banks absolutely need to be a crucial and vital player in the local money system. Mr. Duncan. I am probably less concerned, and possibly I should not be, however less concerned about terrorism financing through the Caribbean banks as I have to do with money laundering. Trade credit may be used to finance a major part of a firm's working capital when. We simply saw in Panama, a big $800 million money laundering plan, realty participation, big number of workers involved in a genuine company-- still a money laundering scheme.
Ms. Yearwood. Part of the concern is the perception of danger versus the truth of the danger. Banks are not leaving the Caribbean because there is money laundering. Banks are leaving the Caribbean since the expenses of compliance are overwhelmingly stacked versus the banking system. You have little jurisdictions and for each account that you are dealing with you have to put a substantial amount of cash into making certain that the expense of-- that the services is tidy. But what we have to carry out in effect is develop a system where the regulators, the banks, everyone is collaborating, information is being shared, and when information is passed between the regulators and the Treasury or the regulators and the banks, individuals know where the spaces are.
Some Known Details About What Is The Difference Between Lease And Finance
And the problem in the Caribbean is that the economies are small, putting these systems in place costs a lot, but all the Caribbean will inform you that they fulfill the compliance policies. Therefore there is a detach in between what is actually occurring and what blue green resorts contract cancellation policy individuals are saying is happening. I believe among the common complaints is the breakdown between what is going on in offshore monetary services and what is going on in banking. And the Panama Papers were extremely largely linked to the overseas financial services industry versus the correspondent banking and de-risking concern that is currently being faced.
Mr. Duncan. I am presuming that the Federal Government is keeping track of-- in Panama Papers a person is never linked in that and start moving monetary resources around, in possibly, the Caribbean country. I am assuming our Treasury and FBI are keeping an eye on that, I would presume. So I am going to go ahead and yield to the ranking member. Mr. Sires. One of the factors that I supported, or I still support the export of energy from this nation is to offset the impact of Venezuela since basically they were utilizing it for political purpose. You know, if you look at the votes they took at the U.N.
So now Venezuela is in problem. I believe their production is something like 40, 50 percent less, and there is a space there that we can assist fill and, you understand, we can truly help in terms of just having a little bit more affect on people. The other thing that frets me is that on the eastern part of the Caribbean. Essentially, we have an Embassy in Barbados and it serves all those islands there. Meanwhile, you have Venezuela, Cuba, Brazil, they all have an existence there. So I was just wondering just how much of a competitive disadvantage this puts us when we don't have, truly, a presence in the Eastern Caribbean.