SHOULD BANK OF AMERICA REDUCE ITS EXPOSURE TO RISK BY PULLING OUT OF TRANSACTIONS INVOLVING PAYMENTS FOR CITIZENSHIP BY INVESTMENT PASSPORTS?

Given the allegations contained in the RICO Complaint in the recently filed case of MSR MEDIA vs. KHAN, presently pending in US District Court in the Middle District of Florida, is Bank of America exposed, regarding Caribbean Galaxy, through correspondent accounts it maintains for National Bank of St. Kitts-Nevis-Anguilla, and Bank of St. Lucia? That is the question being asked by compliance officers who have monitoring developments in both the MSR Media case and the §782 Discovery proceeding filed by the MSR plaintiffs, which includes a pending subpoena for documents to Bank of America, involving correspondent accounts where CBI payments were routed into and through, with an alleged $2.5bn fraud, regarding payments to and from both St. Kitts & St. Lucia.

The bigger question is whether the level of potential risk, for any and all correspondent accounts at B of A, where CBI payments have transited through, being maintained for all five of the East Caribbean states that offer CBI citizenship & passport schemes, is too high for the Bank to tolerate, to continue to service them safely. All American financial institutions are required to have an effective AML/CFT risk-based compliance program, and given the allegations of illegal conduct and corruption that have surfaced of late, regarding both the St. Kitts and St. Lucia CBI/CIU programs, is not continuing to service those accounts inconsistent with the Bank's legal responsibilities?

All our efforts to contact the leadership of the National Bank of St. Kitts-Nevis-Anguilla for comments about the allegations of the RICO complaint have been met with silence from the bank. We are fully aware of the importance that the East Caribbean states attach to their indigenous correspondent accounts. In fact, St. Kitts' Prime Minister, Terrance Drew, at a Roundtable recently, said that if the B of A accounts for the National Bank are closed, it will have a serious effect on the entire country. Nevertheless, Bank of America could be exposed to a slew of civil, administrative, and even criminal, charges if it continues to operate these correspondent accounts,without full knowledge of the circumstances and the facts.

The fact that Leslie Kahn, who was the longtime head of the St. Kitts CIU, and then became the CEO of Caribbean Galaxy, was himself formerly a Vice President at Bank of America raises serious questions about his relationship with the bank, and which requires an internal investigation in itself.

The Attorney-General of St. Kitts has not deemed it necessary to respond to our inquiries, which is extremely disturbing. For that reason, and for others, we urge Bank of America to open an immediate investigation, forthwith, to conduct it with all deliberate speed, and act expeditiously upon the conclusions which result.