Grenada Threatens To Close Bank Crozier, Say Reports

by Carla Johnson, Investors Offshore, London

15 May 2003

Rumours swirling around Bank Crozier in Grenada may be scotched today when customer accounts which have been frozen for two weeks are due to be unfrozen, according to a Grenadian official of the bank who spoke to investors offshore news yesterday. Bank Crozier's head office in Barclelona says that they are not aware of any fundamental problem with the Grenadian bank.

PricewaterhouseCoopers, who have been acting as controllers of the bank since last autumn under a Section 20 Order of the Offshore Banking Act, confirmed this week that Grenada's Finance Minister Anthony Boatswain announced on 30th April his intention to revoke the Bank's license, and it is this that led to the freezing of customer accounts. It is understood that the Bank's management has been protesting against the closure order.

Bank Crozier is one of the few Grenadian banks not closed down by the Government after its blacklisting by the Financial Action Task Force (FATF), which was reversed after a visit by FATF officials ealier this year which is said to have included some type of inspection of Bank Crozier.

PwC's extended control of the bank has continued for an unusually long time, although they have previously said that only relatively minor procedural points were at issue. It is unclear why the Minister has threatened revocation of Crozier's license when a number of lesser sanctions were open to him under the Offshore Banking Act. Grenada's International Financial Services Authority - the Bank's immediate regulatory authority - is expected to issue a statement today after expiry of the 14 days allowed under the Act for the subject of a Section 20 Order to lodge an objection to it.

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