Published On: Sun, Sep 8th, 2019

Chaos at Banco del Orinoco

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Banco del Orinoco

~ Central Bank CBCS intervenes with the application of the emergency regulation ~

WILLEMSTAD/PHILIPSBURG — Banco Del Orinoco N.V., established in Curaçao since 1987 as as international bank of Venezuelan origin, is in chaos. The financial figures are unreliable, there is no ability to pay account holders their money and there is talk of fraud and deceit.

This is evident from reading the judgment based on which the emergency regulation demanded by the Central Bank was issued yesterday, as well as the special authorizations granted to the CBCS.

In a press release, the CBCS says it nicely: “The Central Bank of Curaçao and Sint Maarten have been forced, due to shortcomings within Banco Del Orinoco nv, to ask the Court of First Instance of Curaçao to apply the emergency arrangement with regard to Banco Del Orinoco. This request was made in the interest of the depositors and other creditors of Banco del Orinoco. ”These are international customers and therefore have no direct influence on local citizens and the local economy, according to the CBCS.

According to the CBCS, the judgment states that Banco Del Orinoco (BDO) “has been seriously malfunctioning for some time”. “There has been a serious violation of anti-money laundering and anti-terrorism regulations, it has not conducted its business operations in a proper way, it is not following or not following CBCS’s instructions adequately and it is misleading CBCS about its financial position by using falsified documents.”

Not only is this more than enough reason for the withdrawal of the banking license (which happened on 2 September), but it also means serious doubts about the solvency and liquidity position of BDO. The risk that BDO cannot meet its obligations to account holders has already materialized: there are a large number of complaints from account holders about BDO’s failure to follow payment instructions, dozens of procedures have been implemented to enforce payment and BDO issues not fully enforcing judgments in which it is ordered to pay. In addition, BDO only has one correspondent bank, so that account holders can be duped. ”

All this justifies, according to the Central Bank, that a provision is made in the interest of the joint creditors. That the situation is serious can be seen from this statement from the supervisors: “The decision on the emergency regulation means that Banco Del Orinoco cannot be forced to pay its debts. Pending judgements are suspended and attached seizures are canceled ”

Source: Antilliaans Dagblad


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