So we will simply try to make it through it and I will try to monitor it. All eyes are on Venezuela today, and Venezuela's influence on the Caribbean nations from energy to trade and other things are very worrying, particularly Eastern Caribbean countries. So, I think the question that I have is, all 6 countries of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance called ALBA, that includes efforts to promote regional cooperation and ease poverty; so to what extent have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I think I can answer that question significantly.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant issue if you will of the area. Venezuela is a country that is in collapse. Financially, some are saying it is no longer a democracy. It is a country that has serious and long lasting internal problems which it is going to take years to get beyond. And so, the relationship that Venezuela has actually developed with a number of countries of the Caribbean in great times has actually become stretched, due to the fact that the largesse that Venezuela has actually been able to honestly give away or to offer a concessionary on concessionary terms has been much constrained in the current environment.
I think what I would say remains in the current environment, due to the fact that of the difficulties that Venezuela is having and frankly because of the opportunities that we have in the United States through the whole transformation of energy that we have actually seen in our own nation over the last numerous 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 might have been doing with Venezuela are no longer relevant and we can supply the very same things that you need without the political or without the ideological overhang that you may have had previously - Accounting vs finance which is harder.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to enter that space with those countries? I do not know the answer to that. Mr. Farnsworth. Well, I think in the current environment we need to do some foundation. We need to do some spade work. I suggest, look, Petrocaribe was a very effective program and we understand why. I mean, it was timely, it offered something that the wesley com leaders required when they needed it. It was symbolic. It was very, very easy to discuss to individuals. I imply, we are getting oil from Venezuela.
3 Simple Techniques For What Happened To Household Finance Corporation
It was on one problem. And I think in some cases, when the United States engages with the countries of the Caribbean, we have a lot of well meaning programs and wonderful concepts, however they are diluted, right? Not misguided, however watered down in terms of the effort and the focus. Under Petrocaribe, it was one product easily discussed, highly symbolic, and people said Venezuela's our pal - How long can you finance a camper. And I believe what we need to do better from the United States' point of view is to construct that level of trust through a continuous sustained engagement with the region so that people can say, look, we do trust you. What is a swap in finance.
Mr. Duncan. I personally believe energy is a fantastic chance for us, no doubt about that. Let me look into cash 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 minimize money laundering and opportunities for terrorist organizations to access the financial system? And that is probably to Sally. Ms. Yearwood. In a great deal of methods it does the opposite, because when U.S. banks move out of the region what you have created in reality is a void and that ends up being filled by other organizations.
So, what is being created is a circumstance where there is more chance for terrorist funding or something to fail and someone to exploit that void. So I would say that the U.S. banks definitely need to be a key and vital gamer in the local money system. Mr. Duncan. I am most likely less worried, and possibly I should not be, but less worried about terrorism funding through the Caribbean monetary organizations as I have to do with money laundering. Which results are more likely for someone without personal finance skills? Check all that apply.. We simply saw in Panama, a big $800 million cash laundering plan, genuine estate involvement, big variety of employees associated with a genuine company-- still a cash laundering scheme.
Ms. Yearwood. Part of the concern is the understanding of danger versus the reality of the danger. Banks are not leaving the Caribbean because there is money laundering. Banks are leaving the Caribbean due to the fact that the expenses of compliance are extremely stacked versus the banking system. You have small jurisdictions and for every account that you are handling you need to put a substantial amount of money into ensuring that the expense of-- that business is tidy. But what we have to carry out in effect is develop a system where the regulators, the banks, everyone is interacting, details is being shared, and when information is passed between the regulators and the Treasury or the regulators and the banks, people understand where the voids are.
Getting My How To Use Quickbooks For Personal Finance To Work
And the problem in the Caribbean is that the economies are little, putting these systems in location costs a lot, however all the Caribbean will inform you that they meet the compliance policies. And so there is a detach between what is really taking place and what individuals are saying is taking place. I believe one of the common complaints is the breakdown in between what is going on in offshore financial services and what is going on in banking. And the Panama Documents were really mainly connected to the offshore monetary services industry Visit this link versus the correspondent banking and de-risking problem that is presently being faced.
Mr. Duncan. I am presuming that the Federal Government is keeping track of-- in Panama Documents an individual is never implicated in that and start moving financial resources around, in possibly, the Caribbean nation. I am assuming our top timeshare Treasury and FBI are keeping an eye on that, I would presume. So I am going to proceed and yield to the ranking member. Mr. Sires. Among the reasons that I supported, or I still support the export of energy from this country is to balance out the influence of Venezuela due to the fact that generally they were utilizing it for political function. You understand, if you look at the votes they took at the U.N.
So now Venezuela remains in problem. I think their production is something like 40, half less, and there is a space there that we can help fill and, you know, we can really help in regards to simply having a little bit more affect on individuals. The other thing that worries me is that on the eastern part of the Caribbean. Essentially, we have an Embassy in Barbados and it serves all those islands there. On the other hand, you have Venezuela, Cuba, Brazil, they all have a presence there. So I was simply wondering how much of a competitive disadvantage this puts us when we don't have, really, an existence in the Eastern Caribbean.