November 27, 2021

Cayman Islands’ remittances fall during correspondent banking crisis

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Screen Shot 2016-04-16 at 11.47.36 AMBY AVIA COLLINDER From Jamaica Observer

 In the Cayman Islands, where remittance flows were interrupted in 2015 by the threatened withdrawal of correspondent banking support and the closure of money service providers, outward remittances dropped by US$10 million when compared to 2014 figures.

Remittances fell midyear 2015 when banks in Cayman stopped offering services to the cash transfer companies.

While in 2014, according to data from the Cayman Islands Monetary Authority (CIMA), workers sent US$179.9 million abroad, this figure tanked to US$169.54 in 2015.

Remittances in 2013 were US$174.64 million, as indicated by CIMA, and US$178.73 in 2012.

Just over 50 per cent went to Jamaica — US$110 million in 2014, and US$101 million last year.

In July 2015, Western Union shuttered operations when Fidelity Bank closed its window to money service companies.

By August, Jamaica National lost its own bank and resorted to shipping cash to Jamaica for processing.

The situation was alleviated in November 2015 when Western Union and GraceKennedy Remittance Services reopened four money shops — banking arrangements were not disclosed. Jamaica National also restarted operations, and similarly have not disclosed banking arrangements.

IMAGE: An aerial shot of Grand Cayman

For more on this story go to: http://www.jamaicaobserver.com/business/Cayman-remittances-fall-during-correspondent-banking-crisis_57552

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