Excerpt from Bitcoin Magazine
It’s a place full of unique natural resources, hard-working people and destinations sought by tourists from around the world. But its economies have been thoroughly and devastatingly “de-risked” by major global banks, a process that has seen these banks place restrictions on Caribbean businesses over anti-money laundering (AML) or other regulatory concerns. This makes it exceptionally difficult for Caribbean businesses to participate in the legacy financial system, particularly for making cross-border fund transfers.
“Banks pulling out of the region include the Bank of America, Scotiabank, Royal Bank of Canada, and CIBC,” the Center for Strategic & International Studies reported on the de-risking of the Caribbean that followed the 2008 financial crisis. “Banks from the Netherlands, Germany, and the United Kingdom also restricted their [corresponding banking relationships] business with Caribbean jurisdictions.”
Of course, Bitcoin can provide a lifeline for individuals or businesses that find themselves cut off from financial institutions. Bitcoin is supported by individual nodes running its software and transactions are approved and verified by a network of international miners that are motivated predominately by fees, and not required to adhere to any set of regulations.
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