So we will just try to get through it and I will attempt to monitor it. All eyes are https://beckettvlpi.bloggersdelight.dk/2022/04/23/not-known-incorrect-statements-about-what-does-it-mean-to-finance/ on Venezuela today, and Venezuela's effect on the Caribbean countries from energy to trade and other things are extremely worrying, specifically Eastern Caribbean nations. So, I guess the concern that I have is, all 6 countries of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance understood as ALBA, which includes efforts to promote regional cooperation and ease poverty; so to what extent have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I believe I can answer that question greatly.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant issue if you will of the region. Venezuela is a nation that is in collapse. Economically, some are stating it is no longer a democracy. It is a nation that has serious and best timeshare exit company enduring internal issues which it is going to take years to get beyond. Therefore, the relationship that Venezuela has developed with a variety of nations of the Caribbean in excellent times has ended up being stretched, since the largesse that Venezuela has actually been able to honestly hand out or to offer a concessionary on concessionary terms has been much constrained in the existing environment.
I guess what I would state is in the present environment, due to the fact that of the problems that Venezuela is having and honestly due to the fact that of the chances that we have in the United States through the whole transformation of energy that we have actually seen in our own nation over the last several years, we have an opportunity to come into the Caribbean as a partner and say, look, you understand the programs and the activities that you may have been finishing with Venezuela are no longer relevant and we can offer the same things that you require without the political or without the ideological overhang that you might have had formerly - What is a finance charge on a credit card.
Duncan. Let me ask you something about that. Is there enough trust of the United States for us to enter that space with those countries? I do not understand the response to that. Mr. Farnsworth. Well, I believe in the current environment we require to do some foundation. We need to do some spade work. I imply, look, Petrocaribe was an extremely successful program and we comprehend why. I mean, it was prompt, it offered something that the leaders required when they required it. It was symbolic. It was really, very simple to describe to people. I mean, we are getting oil from Venezuela.
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It was on one concern. And I believe in some cases, when the United States engages with the countries of the Caribbean, we have a lot of well meaning programs and wonderful concepts, but they are diluted, 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 long can i finance a used car. And I think what we require to do much better from the United States' perspective is to construct that level of trust through an ongoing continual engagement with the region so that people can state, look, we do trust you. How do you finance a car.
Mr. Duncan. I personally think energy is a terrific chance for us, no doubt about that. Let me dive into cash 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 institutions. Does that policy work to minimize cash laundering and chances for terrorist companies to access the monetary system? Which is probably to Sally. Ms. Yearwood. In a great deal of methods it does the opposite, because once U.S. banks vacate the region what you have actually created in fact is a void which ends up being filled by other organizations.
So, what is being created is a circumstance where there is more chance for terrorist funding or something to fail and somebody to exploit that void. So I would state that the U.S. banks definitely need to be an essential and essential player in the regional cash system. Mr. Duncan. I am probably less worried, and possibly I should not be, but less worried about terrorism funding through the Caribbean financial organizations as I have to do with money laundering. What is a finance charge on a credit card. We simply saw in Panama, a substantial $800 million cash laundering plan, real estate involvement, substantial variety of employees involved in a Browse around this site legitimate business-- still a money laundering plan.
Ms. Yearwood. Part of the issue is the perception of danger versus the reality of the danger. Banks are not leaving the Caribbean due to the fact that there is money laundering. Banks are leaving the Caribbean due to the fact that the expenses of compliance are extremely stacked against the banking system. You have little jurisdictions and for every single account that you are handling you have to put a big quantity of money into making certain that the expense of-- that business is tidy. However what we need to carry out in impact is produce a system where the regulators, the banks, everyone is interacting, details is being shared, and when details is passed in between the regulators and the Treasury or the regulators and the banks, people understand where deep spaces are.
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And the issue in the Caribbean is that the economies are small, putting these systems in location costs a lot, but all the Caribbean will inform you that they satisfy the compliance guidelines. Therefore there is a detach between what is in fact occurring and what people are saying is taking place. I think among the common problems is the breakdown between what is going on in overseas financial services and what is going on in banking. And the Panama Documents were really mainly linked to the overseas monetary services industry versus the reporter banking and de-risking issue that is presently being dealt with.
Mr. Duncan. I am presuming that the Federal Federal government is keeping an eye on-- in Panama Documents a person is never implicated in that and begin shifting funds around, in potentially, the Caribbean country. 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 reasons that I supported, or I still support the export of energy from this nation is to balance out the influence of Venezuela due to the fact that essentially 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 trouble. I think their production is something like 40, 50 percent less, and there is a void there that we can help fill and, you understand, we can truly assist in terms of just having a little bit more influence on individuals. The other thing that stresses 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 a presence there. So I was simply questioning just how much of a competitive disadvantage this puts us when we don't have, truly, an existence in the Eastern Caribbean.