So we will simply try to get through it and I will attempt to monitor it. All eyes are on Venezuela right now, and Venezuela's influence on the Caribbean nations from energy to trade and other things are extremely worrying, specifically Eastern Caribbean nations. So, I guess the question that I have is, all 6 countries of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance called ALBA, that includes efforts to promote regional cooperation and minimize hardship; so to what degree have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I believe I can answer that concern significantly.
Mr. Farnsworth. Mr. Chairman, thank you. And I concur it is the pregnant concern if you will of the region. Venezuela is a nation that remains in collapse. Economically, some are saying it is no longer a democracy. It is a country that has extreme and enduring internal issues which it is going to take years to get beyond. wesley company Therefore, the relationship that Venezuela has actually established with a variety of nations of the Caribbean in excellent times has become stretched, due to the fact that the largesse that Venezuela has actually been able to honestly hand out or to offer a concessionary on concessionary terms http://cashynyb327.image-perth.org/not-known-facts-about-which-results-are-more-likely-for-someone-without-personal-finance-skills-check-all-that-apply has actually been much constrained in the existing environment.
I think what I would state remains in the existing environment, because of the troubles that Venezuela is having and honestly due to the fact that of the opportunities that we have in the United States through the entire transformation of energy that we have seen in our own nation over the last numerous years, we have an opportunity to come into the Caribbean as a partner and say, look, you know the View website programs and the activities that you may have been finishing 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 may have had formerly - How long can you finance a camper.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to enter that space with those nations? I don't know the response to that. Mr. Farnsworth. Well, I think in the existing environment we require to do some foundation. We need to do some spade work. I indicate, look, Petrocaribe was a really effective program and we comprehend why. I indicate, it was timely, it offered something that the leaders required when they required it. It was symbolic. It was really, very simple to explain to people. I suggest, we are getting oil from Venezuela.
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It was on one problem. And I believe in some cases, when the United States engages with the nations of the Caribbean, we have a lot of well indicating programs and wonderful ideas, but they are watered down, right? Not misguided, but diluted in regards to the effort and the focus. Under Petrocaribe, it was one item quickly discussed, highly symbolic, and people said Venezuela's our buddy - What happened to household finance corporation. And I think what we need to do much better from the United States' perspective is to develop that level of trust through an ongoing sustained engagement with the area so that individuals can state, look, we do trust you. What is a consumer finance account.
Mr. Duncan. I personally think energy is an excellent chance for us, no doubt about that. Let me delve into cash laundering and terrorism funding a bit. There is a big 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 financial system? Which is most likely to Sally. Ms. Yearwood. In a great deal of ways it does the opposite, since once U.S. banks move out of the area what you have created in fact is a void and that becomes filled by other institutions.
So, what is being developed is a scenario where there is more chance for terrorist financing or something to go incorrect and someone to exploit that space. So I would state that the U.S. banks absolutely require to be a key and important player in the local cash system. Mr. Duncan. I am probably less worried, and possibly I shouldn't be, but less worried about terrorism financing through the Caribbean monetary organizations as I am about cash laundering. How long can you finance a used car. We simply saw in Panama, a substantial $800 million money laundering plan, real estate involvement, big variety of employees included in a genuine company-- still a cash laundering scheme.
Ms. Yearwood. Part of the issue is the perception of risk versus the truth of the danger. Banks are not leaving the Caribbean due to the fact that there is money laundering. Banks are leaving the Caribbean since the costs of compliance are extremely stacked against the banking system. You have little jurisdictions and for every account that you are handling you need to put a big amount of cash into making sure that the expense of-- that the businesses is clean. But what we have to do in result is develop a system where the regulators, the banks, everybody is collaborating, info is being shared, and when information is passed between the regulators and the Treasury or the regulators and the banks, individuals understand where the voids are.
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And the issue in the Caribbean is that the economies are little, putting these systems in location costs a lot, however all the Caribbean will tell you that they satisfy the compliance guidelines. Therefore there is a detach between what is really happening and what individuals are stating is happening. I think among the typical grievances 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 mostly linked to the offshore monetary 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 track of-- in Panama Papers an individual is never implicated in that and start shifting funds 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 yield to the ranking member. Mr. Sires. Among the factors that I supported, or I still support the export of energy from this country is to offset the impact of Venezuela since basically they were utilizing it for political function. You know, if you take a look at the votes they took at the U.N.
So now Venezuela is in problem. I believe their production is something like 40, 50 percent less, and there is a space there that we can assist fill and, you understand, we can actually help in terms of just having a little bit more influence on people. The other thing that worries me is that on the eastern part of the Caribbean. Essentially, we have an Embassy in Barbados and it serves all those islands there. Meanwhile, you have Venezuela, Cuba, Brazil, they all have a presence there. So I was just questioning how much of a competitive disadvantage this puts us when we do not have, really, a presence in the Eastern Caribbean.