So we will simply attempt to get through it and I will try to monitor it. All eyes are on Venezuela today, and Venezuela's effect on the Caribbean countries from energy to trade and other things are very concerning, particularly Eastern Caribbean nations. So, I think the concern that I have is, all six countries of the Company of Eastern Caribbean States are members of the Bolivarian Alliance known as ALBA, which consists of efforts to promote regional cooperation and ease hardship; so to what extent have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I believe I can respond to that question significantly.
Mr. Farnsworth. Mr. Chairman, thank you. And I concur it is the pregnant problem if you will of the area. Venezuela is a nation that is in collapse. Economically, some are saying it is no longer a democracy. It is a country that has extreme and lasting internal issues which it is going to take years to get beyond. Therefore, the relationship that Venezuela has actually developed with a number of countries of the Caribbean in great times has actually ended up being strained, because the largesse that Venezuela has actually been able to honestly distribute or to supply a concessionary on concessionary terms has actually been much constrained in the existing environment.
I think what I would say remains in the present environment, because of the difficulties Browse this site that Venezuela is having and honestly due to the fact that of the chances that we have in the United States through the whole transformation of energy that we have seen in our own country over the last numerous years, we have a chance 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 require without the political or without the ideological overhang that you may have had formerly - How do you finance a car.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to step into that space with those countries? I do not understand the answer to that. Mr. Farnsworth. Well, I think in the current environment we need to do some foundation. We require to do some spade work. I indicate, look, Petrocaribe was a really successful program and we comprehend why. I indicate, it was timely, it supplied something that the leaders needed when they required it. It was symbolic. It was very, really simple to explain to people. I indicate, we are getting oil from Venezuela.
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It was on one problem. And I believe sometimes, when the United States engages with the nations of the Caribbean, we have a lot of well suggesting programs and wonderful ideas, but they are diluted, right? Not misguided, however diluted in terms of the effort and the focus. Under Petrocaribe, it was one product easily described, highly symbolic, and individuals said Venezuela's our pal - What does ltm mean in finance. And I think what we require to do much better from the United States' perspective is to develop that level of trust through an ongoing continual engagement with the area so that individuals can say, look, we do trust http://damienrzss233.trexgame.net/8-easy-facts-about-what-is-the-difference-between-accounting-and-finance-described you. What does ach stand for in finance.
Mr. Duncan. I personally believe energy is a great chance for us, no doubt about that. Let me dig into money laundering and terrorism funding a little bit. There is a big push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking institutions. Does that policy work to reduce cash laundering and opportunities for terrorist organizations to access the monetary system? Which is most likely to Sally. Ms. Yearwood. In a lot of methods it does the opposite, because as soon as U.S. banks vacate the area what you have developed in fact is a void which ends up being filled by other institutions.
So, what is being developed is a circumstance where there is more chance for terrorist financing or something to go wrong and someone to exploit that void. So I would say that the U.S. banks definitely need to be a key and crucial gamer in the regional money system. Mr. Duncan. I am probably less worried, and possibly I shouldn't be, but less concerned about terrorism funding through the Caribbean financial institutions as I am about cash laundering. Which results are more likely for someone without personal finance skills? Check all that apply.. We simply saw in Panama, a substantial $800 million cash laundering plan, realty participation, huge variety of workers involved in a legitimate company-- still a money laundering plan.
Ms. Yearwood. Part of the problem is the perception of danger versus the truth of the risk. Banks are not leaving the Caribbean because there is money laundering. Banks are leaving the Caribbean due to the fact that the costs of compliance are extremely stacked against the banking system. You have little jurisdictions and for each account that you are dealing with you have to put a big amount of money into ensuring that the expense of-- that the companies is clean. But what we have to carry out in effect is create 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, individuals understand where deep spaces are.
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And the problem in the Caribbean is that the economies are small, putting these systems maintenance cost calculator in place costs a lot, but all the Caribbean will inform you that they fulfill the compliance guidelines. Therefore there is a disconnect in between what is really taking place and what individuals are saying is occurring. I believe one of the common problems is the breakdown between what is going on in offshore financial services and what is going on in banking. And the Panama Papers were extremely largely linked to the offshore monetary services market versus the reporter banking and de-risking issue that is presently being faced.
Mr. Duncan. I am assuming that the Federal Federal government is keeping track of-- in Panama Documents a person is never ever implicated because and start shifting financial resources around, in possibly, the Caribbean nation. I am assuming our Treasury and FBI are keeping track of that, I would presume. So I am going to go on and yield to the ranking member. Mr. Sires. One of the reasons that I supported, or I still support the export of energy from this country is to offset the influence of Venezuela due to the fact that essentially they were utilizing it for political purpose. You understand, if you look at the votes they took at the U.N.
So now Venezuela remains in difficulty. I believe their production is something like 40, 50 percent less, and there is a space there that we can help fill and, you understand, we can truly assist in regards to just having a little bit more affect on individuals. The other thing that stresses me is that on the eastern part of the Caribbean. Basically, 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 an existence there. So I was simply questioning how much of a competitive disadvantage this puts us when we do not have, truly, a presence in the Eastern Caribbean.