So we will simply try to survive it and I will attempt to monitor it. All eyes are on Venezuela today, and Venezuela's influence on the Caribbean countries from energy to trade and other things are extremely worrying, specifically Eastern Caribbean countries. So, I guess the concern that I have is, all 6 countries of the Company of Eastern Caribbean States are members of the Bolivarian Alliance known as ALBA, which consists of efforts to promote local cooperation and alleviate hardship; so to what degree have ALBA and Petrocaribe increased Venezuela's impact in the Caribbean? I think I can respond to that question significantly.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant problem if you will of the area. Venezuela is a nation http://rylanecwx436.tearosediner.net/top-guidelines-of-how-to-finance-a-kitchen-remodel that is in collapse. Economically, some are saying it is no longer a democracy. It is a country that has severe and lasting internal problems which it is going to take years to get beyond. Therefore, the relationship that Venezuela has actually developed with a number of nations of the Caribbean in good times has become stretched, because the largesse that Venezuela has had the ability to honestly distribute or to provide a concessionary on concessionary terms has been much constrained in the present environment.
I guess what I would say is in the current environment, because of the difficulties that Venezuela is having and frankly because of the chances that we have in the United States through the whole revolution of energy that we have actually seen in our own country over the last several years, we have a chance to come into the Caribbean as a partner and say, look, you understand the programs and the activities that you may have been making with Venezuela are no longer relevant and we can supply the exact same things that you need without the political or without the ideological overhang that you might have had formerly - How to find the Check out this site finance charge.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to enter that space with those countries? I don't know the response to that. Mr. Farnsworth. Well, I think in the existing environment we need to do some groundwork. We need to do some spade work. I indicate, look, Petrocaribe was a really successful program and we understand why. I mean, it was timely, it supplied something that the leaders required when they required it. It was symbolic. It was really, very easy to describe to individuals. I indicate, we are getting oil from Venezuela.
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It was on one issue. And I believe often, when the United States engages with the countries of the Caribbean, we have a great deal of well implying programs and terrific concepts, however they are watered down, right? Not deluded, however watered down in terms of the effort and the focus. Under Petrocaribe, it was one product easily explained, extremely symbolic, and individuals stated Venezuela's our friend - How old of an rv can you finance. And I believe what we require to do better from the United States' perspective is to build that level of trust through an ongoing sustained engagement with the region so that individuals can say, look, we do trust you. How to finance a franchise with no money.
Mr. Duncan. I personally believe energy is an excellent opportunity for us, no doubt about that. Let me delve into money laundering and terrorism funding a bit. There is a huge push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking organizations. Does that policy work to lower money laundering and chances for terrorist organizations to access the monetary system? Which is most likely to Sally. Ms. Yearwood. In a great deal of methods it does the opposite, since as soon as U.S. banks move out of the area what you have produced in truth is a void which ends up being filled by other institutions.
So, what is being created is a scenario where there is more chance for terrorist financing or something to fail and somebody to exploit that void. So I would state that the U.S. banks definitely need to be a crucial and crucial gamer in the regional money system. Mr. Duncan. I am most likely less worried, and perhaps I shouldn't be, however less worried about terrorism funding through the Caribbean banks as I am about money laundering. Which of the following approaches is most suitable for auditing the finance and investment cycle?. We just saw in Panama, a big $800 million money laundering plan, genuine estate participation, substantial variety of employees associated with a legitimate company-- still a cash laundering scheme.
Ms. Yearwood. Part of the problem is the perception of risk versus the truth of the danger. Banks are not leaving the Caribbean because there is cash laundering. Banks are leaving the Caribbean because the expenses of compliance are overwhelmingly stacked against the banking system. You have little jurisdictions and for every account that you are dealing with you need to put a huge quantity of cash into ensuring that the expense of-- that the companies is tidy. However what we have to do in impact is produce a system where the regulators, the banks, everybody is interacting, info 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 in location costs a lot, however all the Caribbean will inform you that they satisfy the compliance guidelines. Therefore there is a disconnect in between what is actually occurring and what people are stating is taking place. I think among the typical grievances is the breakdown between what is going on in offshore monetary services and what is going on in banking. And the Panama Documents were very largely connected to the offshore financial services market versus the reporter banking and de-risking issue that is presently being dealt with.
Mr. Duncan. I am assuming that the Federal Government is keeping an eye on-- in Panama Papers an individual is never implicated because and begin moving financial resources around, in possibly, the Caribbean country. I am presuming our Treasury and FBI are keeping track of that, I would assume. So I am going to go on and yield to the ranking member. Mr. Sires. Among the factors that I supported, or I still support the export of energy from this nation is to offset the influence of Venezuela since essentially they were utilizing it for political function. You understand, if you look at the votes they took at the U.N.
So now Venezuela is in difficulty. I believe their production is something like 40, half less, and there is a space there that we can assist fill and, you understand, we can actually help in regards to just having a little bit more influence on people. The other thing that frets me is that on the eastern part of the Caribbean. Generally, we have an Embassy in Barbados and it serves all those islands there. Meanwhile, you have Home page Venezuela, Cuba, Brazil, they all have a presence there. So I was simply questioning how much of a competitive drawback this puts us when we don't have, actually, an existence in the Eastern Caribbean.