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[Dung Lawver]

So we will simply attempt to make it through it and I will attempt to monitor it. All eyes are on Venezuela right now, and Venezuela's effect on the Caribbean countries from energy to trade and other things are very worrying, especially Eastern Caribbean nations. So, I think the question that I have is, all six nations of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance understood as ALBA, that includes efforts to promote regional cooperation and reduce poverty; so to what level have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I believe I can respond to that question tremendously.

Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant problem if you will of the region. Venezuela is a nation that is in collapse. Financially, some are stating it is no longer a democracy. It is a country that has serious and enduring internal problems which it is going to take years to get beyond. And so, the relationship that Venezuela has actually established with a number of countries of the Caribbean in good times has actually become stretched, since the largesse that Venezuela has been able to frankly hand out or to supply a concessionary on concessionary terms has been much constrained in the existing environment.

I guess what I would say remains in the present environment, because of the difficulties 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 seen in our own nation over the last a number of years, we have an opportunity to come into the Caribbean as a partner and say, look, you understand the programs and Visit the website the activities that you might have been doing with Venezuela are no longer pertinent and we can provide the very same things that you require without the political or without the ideological overhang that you might have had previously - What does nav stand for in finance.

Duncan. Let me ask you something about that. Is there enough trust of the United States for us to step into that void with those countries? I do not understand the response to that. Mr. Farnsworth. Well, I think in the present environment we require to do some groundwork. We require to do some spade work. I imply, look, Petrocaribe was an extremely effective program and we comprehend why. I imply, it was timely, it supplied something that the leaders required when they required it. It was symbolic. It was really, really simple to discuss to individuals. I imply, we are getting oil from Venezuela.

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It was on one issue. And I think sometimes, 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 watered down, right? Not deluded, but watered down in terms of the effort and the focus. Under https://diigo.com/0oatx7 Petrocaribe, it was one item easily discussed, highly symbolic, and individuals said Venezuela's our buddy - How to finance a private car sale. And I believe what we require to do better from the United States' viewpoint is to build that level of trust through a continuous continual engagement with the region so that people can say, look, we do trust you. The trend in campaign finance law over time has been toward which t....

Mr. Duncan. I personally believe energy is a fantastic opportunity for us, no doubt about that. Let me explore 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 reduce money laundering and chances for terrorist organizations to access the financial system? And that is probably to Sally. Ms. Yearwood. In a lot of methods it does the opposite, due to the fact that when U.S. banks move out of the area what you have actually created in truth is a void and that ends up being filled by other institutions.

So, what is being created is a scenario where there is more opportunity for terrorist funding or something to go wrong and someone to exploit that space. So I would state that the U.S. banks definitely require to be a key and important player in the regional cash system. Mr. Duncan. I am most likely less worried, and perhaps I should not be, but less worried about terrorism financing through the Caribbean banks as I have to do with cash laundering. How long can you finance a used car. We just saw in Panama, a substantial $800 million cash laundering scheme, genuine estate involvement, substantial number of employees involved in a legitimate service-- still a money laundering plan.

Ms. Yearwood. Part of the issue is the perception of risk versus the reality of the danger. Banks are not leaving the Caribbean since there is money laundering. Banks are leaving the Caribbean because the expenses of compliance are overwhelmingly stacked against the banking system. You have little jurisdictions and for each account that you are dealing with you have to put a huge amount of cash into ensuring that the expense of-- that business is tidy. But what we have to do in impact is produce a system where the regulators, the banks, everybody is collaborating, details is being shared, and when details is passed in between the regulators and the Treasury or the regulators and the banks, individuals understand where the spaces are.

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And the time share exit team cost issue in the Caribbean is that the economies are little, putting these systems in location costs a lot, however all the Caribbean will inform you that they fulfill the compliance regulations. Therefore there is a disconnect in between what is in fact happening and what people are saying is occurring. I believe one of the common grievances is the breakdown in between what is going on in overseas financial services and what is going on in banking. And the Panama Papers were extremely largely linked to the overseas monetary services industry versus the correspondent banking and de-risking concern that is presently being dealt with.

Mr. Duncan. I am assuming that the Federal Federal government is keeping an eye on-- in Panama Documents an individual is never ever implicated because and begin shifting funds around, in possibly, the Caribbean country. I am assuming our Treasury and FBI are keeping track of that, I would presume. So I am going to proceed 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 balance out the influence of Venezuela because generally they were using it for political purpose. You know, if you 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 space there that we can help fill and, you understand, we can actually help in terms of just having a bit more influence on people. The other thing that frets me is that on the eastern part of the Caribbean. Generally, 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 simply wondering just how much of a competitive disadvantage this puts us when we do not have, truly, a presence in the Eastern Caribbean.