The Financial Services Regulatory Commission is now overseeing issues related to
the Global Bank of Commerce and one depositor – Jack Stroll – which has since
been taken before the court after the bank has reportedly been experiencing
difficulties in meeting some of its obligations in recent times.
Prime Minister and Finance Minister, Gaston Browne told the House of
Representatives on Thursday that the matters surrounding the bank and any
customer are fully in the purview of the FSRC, the legal regulators of the banking
sector in Antigua and Barbuda.
He said the FSRC is the only authority under the law to undertake a review of any
banking institution operating in the country and it does so at its own discretion. He
said as the minister of finance he does not have the authority to interfere with the
FSRC as it oversees the operations of any bank nor can he comment on the
fiduciary responsibilities of the FSRC, a bank and its client.
Any interference could adversely affect the integrity of the FSRC, the prime
minister remarked.
In response to other queries under the Questions to the Prime Minister at
Thursday’s meeting, the prime minister revealed that the Citizenship by Investment
Programme (CIP) no longer utilizes GBC to process funds derived from its
operations.
“The CIP has stopped depositing funds at Global Bank. I know that had at least
one arrangement for an escrow account that was funded through Global Bank and
this had to do with the PV Energy deal but after it became public that the bank was
encountering difficulties they ceased depositing funds in Global Bank,” he
reported.
The prime minister acknowledged that there is an outstanding issue where a
benefactor – Steve Morgan – had deposited US$1 million into an account at GBC
earmarked for Barbuda relief following the passage of Hurricane Irma.
That money, according to the prime minister, remains in the bank as efforts to
retrieve the money have been futile because of the corresponding banking and
other difficulties currently being faced by the bank. Apart from the Morgan Trust
Fund amounts, the prime minister said there are no other monies allocated for
Barbuda relief that are stuck in the bank.
On that matter, PM Browne said he has met personally with Mr. Morgan in an
effort to resolve the matter but the arrangements fell apart later. Further he stated
that there is correspondence to show that both the financial secretary and he have
been in contact with Morgan on several occasions.
