The Belize government has revoked the licence of Atlantic International Bank Limited (AIBL) on the recommendations of the country’s Central Bank.
Central Bank Governor, Joy Grant, said the situation unfolded on November 8 last year, when the United States Federal Trade Commission named the bank as a defendant in a case involving alleged fraud related to certain transactions for the sale of land in a property development known as Sanctuary Belize.
“The Federal Trade Commission then sought and obtained in these proceedings, a temporary restraining order against certain of the bank’s liquid assets in the United States,” she said.
The Governor said that AIBL “has experienced challenges meeting its liquidity requirements due, it appears, to the reputational damage caused by being named in the said proceedings”
She said that Atlantic International Bank Limited “experienced an unusual and increasing level of withdrawal requests” and that “this led to customers facing extended delays in accessing their funds, which in turn led to a worsening of the bank’s liquidity position.”
Last month, the AIBL informed the Central bank that the chief executive officer, Ricardo Pelayo, had resigned.
Grant said that as a result of the situation confronting the bank, it had recommended to the government that the Unrestricted “A” Class International Banking Licence be revoked in accordance with Sections 25 and 27(1) of the International Banking Act.
According to the AIBL’s website, it began operations here in 2001 and that the “licence permits us to offer first-class international banking services or offshore services to both personal and corporate clients who are non-residents of Belize.”
