Caye Bank - account opening and troubles with existing accounts

I just heard via email from Mariela Marin. She reports that the correspondent bank--TS Bank--is doing "painfully slow" due diligence on all account closings and, in general, on all wire transfers. Does anybody know about TS Bank? Could someone who knows the law on this let me know why a correspondent bank has to be used in my case?
 

Martin Everson

Offshore Consultant
Business Angel
Could someone who knows the law on this let me know why a correspondent bank has to be used in my case?
Caye bank is not a US bank and hence has no direct access to Fedwire clearing of US dollar payments. Caye Bank hence has to use a bank in US (i.e correspondence bank) that will allow them to process dollar transactions like every other bank outside US territory has to use to process dollars. In your case they are using Treynor State Bank in Iowa. TS bank will have to do enhanced due diligence on your payment just like correspondence banks do for EPB payments. The information is kept and checked against multiple intelligence databases and checked with authorities in some cases. It is all a manual process for TS bank so it can take time. Belize is a high risk country for money laundering and that is why this is happening with dollar payments.
 
I am concerned because I have been able with no problems before to make a deposit and several withdrawals to and from my account with Caye Bank. No excessive or enhanced due diligence was necessary for my prior transactions using Caye Bank's prior correspondent bank or banks. Who has ever heard of Treynor State Bank in Iowa?

What do you mean hopefully? Do I have to write to the Belizean ambassador in D.C. to get something done here? Bank of America used to be one of Caye Bank's correspondent banks. Do you know what happened to that relationship? T

his is a real caveat for me on what comes out of Live And Invest Overseas and Kathleen Peddicord and Lief Simon. I had to fire a lawyer that they recommended in Ecuador--an American lawyer with American and Ecuadorean licenses, no less--and get my retainer back. When I did this, guess what? The guy actually suggested another law firm in Quito and asked me if I wanted him to wire my retainer to them. I told him that he might want to check with the ethics folks back in the state or states in which he was still licensed in the US to see if that would fly. It certainly did not fly with me. As if I would want a recommendation on a firm from a firm that I had just fired!

I have also done some disability advocacy work and have found Simon and Peddicord luring disabled folks abroad by telling them simply that they could get their disability checks deposited to a foreign bank. But guess what? The Social Security Administration corresponds with you when you move abroad and are receiving disability payments. If you don't respond, your benefits will be suspended and potentially terminated. Consider the case of Ecuador where Lee Harrison, a speaker at the Live and Invest Overseas event that I attended, averred that mail from abroad does not get delivered. So what are you going to do if you are on disability and don't get your Social Security Administration correspondence and your benefits get suspended or terminated? And I suspect that they are also under reporting the amount of money that it takes to live in places like Lisbon Portugal and the Abruzzo Region of Italy. Who can one get good advice from about retiring abroad? Any ideas?

I am concerned because although Caye Bank may have a contractual relationship with TS Bank, I don't. My contractual relationship is with Caye Bank. They are satisfied that I can close with them. I have met their requirements--which, by the way, unlike at, say, Barclay's--are not at all posted on their website. They have a legal obligation to find a way to close my account and to give me my measly $875 back.

FYI: I called the Belizean Consulate in Los Angeles. They don't have any sort of listing of lawyers in Belize--whether in Belize itself or of lawyers licensed in Belize who may be living in the US. I have contacted a banking law firm that is also a trust company in Belize about this. I wonder if they will respond.
 

PurpleDan

New Member
Any more updates on this bank and it's due diligence? I'm not concerned about the diligence. I'm concerned about how long it takes.
 

nickyboy2018

Active Member
WonderinginCalifornia

A really interesting post. What due diligence did u need to provide to close your account? What was requested by Caye Bank? Surely a request to close, provision of your passport, security code and account closed. Did they require other information?
 

AZgirl

New Member
I have the same issue trying to close my account. Caye Bank required the usual name, account number, security code, and validated current address for where to wire the money. Caye Bank (Mariela Marin) indicated that their new correspondent bank did not provide them with the time frame of their process, but they were doing their best (due diligence?) to expedite **all** *pending* wires. (So it seems there are more of us with *pending* wires.) Per the Internet, Treynor State Bank (aka TS Bank) is is headquartered in Treynor and is the 54th largest bank in the state of Iowa. It is also the 1,800th largest bank in the nation. It was established in 1923 and as of December of 2018, it had grown to 96 employees at 8 locations. TS Bank has a B health rating.
 

mishatl

New Member
I’ve been waiting on an outgoing transfer for 5 months & Caye Bank continues to blame this new correspondent and their “due diligence”. Emails are either ignored, or the blame is again put on a correspondent bank with no solution or expected timeline provided. Has anyone had a successful outgoing wire since last year? I responded on Caye Bank’s Twitter, on a tweet saying that they’re one of the best banks in Belize, which is impossible to believe for remote customers!
 
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