Suriname President Santokhi voices concern at new US banking rules

April 22, 2022

President Chandrikapersad Santokhi has expressed concern about the new banking legislation in the United States that he says could have a very negative effect on the financial system in the Dutch-speaking Caribbean Community (CARICOM) country and the wider region.

“These are laws that have to do with compliance with legal provisions and new rules by banks. This has an impact on the Caribbean region and the member states of CARICOM because CARICOM banks have to work with correspondent banks.

“These are other foreign banks, intermediate banks, which countries, such as Suriname, need because banks in their country cannot transfer money directly,” Santokhi said ahead of his departure for Barbados where he will join other regional leaders for a roundtable discussion on De-Risking and Correspondent Banking.

President Santokhi said the Caribbean region has been hit by new laws and regulations that the United States has adopted for US banks and that these laws have an extraterritorial effect, in the sense that they affect the American territory and beyond.

Santokhi explained that the correspondent banks are mostly American banks, to whom the new rules also apply. According to the head of state, many correspondent banks have decided to stop cooperating with local banks because they cannot meet the standards that apply in the US.

He has warned that soon there will be banks in the Caribbean region that do not have correspondent banks.

“Then you will have a credit card that doesn’t work abroad or you have to transfer money, but it doesn’t work. Then these countries are economically and financially isolated. There are a few countries that are already subject to the new regime and they are feeling it. We don’t know where it will end, so we have decided to talk to the US soon,” said President Santhoki.

This issue will be discussed with US Congresswoman Maxine Waters, the Chairwoman of the US House Committee on Financial Services, who along with Barbados Prime Minister Mia Mottley will co-chair the round table discussion.

Wednesday’s round table event will also be attended by the CARICOM Secretary-General Dr. Carla Barnett and the Director-General of the Organization of Eastern Caribbean States (OECS), Dr. Didacus Jules as well as the President of the Caribbean Development Bank (CDB), Dr. Gene Leon.