Opening an account in a financial institution today would require items such as a utility bill for proof of address, multiple id’s, reference letter among others – a result of stringent regulations enforced by foreign banks, says prime minister Dickon Mitchell.
The financial sector in Grenada is faced with a number of challenges; one of which is forced compliance to regulations imposed by foreign banking systems.
Prime Minister Dickon Mitchell explained this while responding to concerns about the banking hours during Wednesday’s town hall meeting at the Westerhall Secondary School.
According to the Prime Minister, the exorbitant requirements; proof of address, multiple forms of identification etc., from financial institutions have become a detriment to the people having trouble meeting all of the requirements, or those not bothering to go through the tedious process.
Prime Minister Mitchell explained the consequences of local and regional banks not complying with the foreign requirements.
He said this is where financial literacy comes into play.
Commercial banks in the Caribbean saw longstanding banking relationships terminated due to the perception that financial activity with the Caribbean is high-risk.
De-risking refers to the restriction of correspondent banking relationships or business services from major global banks to certain jurisdictions due to concerns over money laundering or potential involvement in the financing of terrorist activities.