So we will simply attempt to survive it and I will attempt 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 really worrying, especially Eastern Caribbean nations. So, I think the question that I have is, all 6 nations of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance called ALBA, that includes efforts to promote regional cooperation and alleviate hardship; so to what degree have ALBA and Petrocaribe increased Venezuela's impact in the Caribbean? I believe I can answer that concern enormously.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant issue if you will of the region. Venezuela is a country that is in collapse. Economically, some are saying it is no longer a democracy. It is a nation that has serious and lasting internal issues which it is going to take years to get beyond. Therefore, the relationship that Venezuela has established with a number of countries of the Caribbean in excellent times has actually ended up being stretched, since the largesse that Venezuela has actually had the ability to honestly offer away or to supply a concessionary on concessionary terms has actually been much constrained in the present environment.
I guess what I would state is in the current environment, due to the fact that of the difficulties that Venezuela is having and frankly because of the chances that we have in the United States through the entire revolution 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 may have been doing with Venezuela are no longer relevant and we can provide the very same things that you require without the political or without the ideological overhang that you might have had formerly - How to owner finance a home.
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 do not understand the answer to that. Mr. Farnsworth. Well, I think in the present environment we need to do some foundation. We require to do some spade work. I imply, look, Petrocaribe was a very successful program and we comprehend why. I imply, it was prompt, it offered something that the leaders required when they needed it. It was symbolic. It was extremely, very simple to explain to people. I imply, we are getting oil from Venezuela.
More About Which Of The Following Can Be Described As Direct Finance?
It was on one problem. And I think sometimes, when the United States engages with the countries of the Caribbean, we have a lot of well implying programs and wonderful concepts, but they are diluted, right? Not misguided, but diluted in regards to the effort and the focus. Under Petrocaribe, it was one item easily discussed, extremely symbolic, and individuals said Venezuela's our buddy - What was the reconstruction finance corporation. And I believe what we require to do much better from the United States' point of view is to construct that level of trust through a continuous sustained engagement with the region so that people can say, look, we do trust you. Trade credit may be used to finance a major part of a firm's working capital when.
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 huge push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking organizations. Does that policy work to minimize money laundering and chances for terrorist companies to access the financial system? And that is most likely to Sally. Ms. Yearwood. In a great deal of methods it does the opposite, due to the fact that when U.S. banks move out of the area what you have produced in truth is a space and that becomes filled by other institutions.
So, what is being created is a circumstance where there is more opportunity for terrorist financing or something to fail and somebody to exploit that void. So I would state that the U.S. banks absolutely need to be a key and vital player in the local cash system. Mr. Duncan. I am probably less worried, and maybe I shouldn't be, but less worried about terrorism financing through the Caribbean banks as I have to do with cash laundering. What does leverage mean in finance. We simply saw in Panama, a big $800 million cash laundering plan, property involvement, big number of workers associated with a genuine organization-- still a money laundering plan.
Ms. Discover more Yearwood. Part of the issue is the understanding of danger versus the truth of the risk. Banks are not leaving the Caribbean because there is cash how to get out of a timeshare contract laundering. Banks are leaving the Caribbean because the expenses of compliance are extremely stacked against the banking system. You have little jurisdictions and for each account that you are dealing with you need to put a huge amount of money into making sure that the expense of-- that business is clean. But what we need to carry out in result is create a system where the regulators, the banks, everybody is interacting, details is being shared, and when info is passed between the regulators and the Treasury or the regulators and the banks, individuals understand where the voids are.
The Buzz on What Can The Federal Government Do To Finance A Deficit?
And the issue in the Caribbean is that the how to sell a timeshare deed economies are little, putting these systems in location costs a lot, but all the Caribbean will inform you that they satisfy the compliance regulations. And so there is a detach in between what is actually occurring and what individuals are saying is happening. I think one of the typical problems is the breakdown in between what is going on in offshore financial services and what is going on in banking. And the Panama Papers were extremely mainly linked to the offshore financial services market versus the reporter banking and de-risking concern that is presently being faced.
Mr. Duncan. I am presuming that the Federal Government is keeping an eye on-- in Panama Documents an individual is never linked because and start moving monetary resources around, in potentially, the Caribbean nation. I am presuming our Treasury and FBI are keeping an eye on that, I would presume. So I am going to go on and accept the ranking member. Mr. Sires. One of the factors that I supported, or I still support the export of energy from this country is to offset the influence of Venezuela because essentially they were using it for political purpose. You understand, if you look at the votes they took at the U.N.
So now Venezuela is in trouble. I believe their production is something like 40, half less, and there is a void there that we can help fill and, you know, we can actually help in terms of just having a bit more affect on individuals. The other thing that frets me is that on the eastern part of the Caribbean. Basically, we have an Embassy in Barbados and it serves all those islands there. Meanwhile, you have Venezuela, Cuba, Brazil, they all have an existence there. So I was just wondering how much of a competitive disadvantage this puts us when we do not have, actually, a presence in the Eastern Caribbean.