Cash transfer services hang in balance
(CNS Business): The future of money transfer businesses in the Cayman Islands is up for debate. Government leaders said when it comes to these types of services, in some instances the risks out weigh the rewards. US correspondent banks have pulled out of the “bulk cash business” and Cayman National Bank, which facilitates the remaining money transfer business left on island, decided to follow suit. Now JN Money Transfer, MoneyGram and Fast-Funds Money Transfer have until the end of August to find a new bank.
Business leaders with these companies told us they recently received a letter letting them know of this change. Financial Services Minister Wayne Panton explained that the bank originally gave the companies to the end of this month, and then later extended that deadline. However, Panton stressed he does not think this will be the end of all money transfer services in Cayman.
The minister stated, “While any commercial decisions regarding money-services businesses are a matter for the businesses and the banks to make themselves, government and CIMA are arranging these discussions in order to address concerns on both sides, with the aim of ensuring that options remain open to consumers.”
He added, “We are encouraged by the level of collaborative engagement so far, and that all sides are working to ensure minimal disruption to remittance services locally.”
Leesa Kow, General Manager of JN Money Transfer, told CNS Business, “It must be noted that JN Money Services Cayman, which offers JN Money Transfer and Moneygram services, and other money transfer operators in the Cayman Islands are still open for business.”
She explained although some major banks have declined to do business with money transfer operators, “many have been working to ensure that remittance companies are fully compliant with anti-money laundering and countering of financing terror (AML/CFT) regulations.”
Kow stated the company has been working diligently and are currently in discussion with their banking partners and CIMA to ensure their customers that there will be a future for JN Money Transfer.
CNS Business spoke with all three money transfer services to get their point of view. Watch the video report above to hear their reactions.
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