AMERICAN-OWNED COMPANY, HAVING LOST $50m DEPOSITED IN NOW TOTALLY INSOLVENT HAMILTON RESERVE BANK, SUES NEVIS REGULATOR, MINISTER OF FINANCE AND ATTORNEY GENERAL, TO RECOVER ITS FUNDS

One of the recurring nightmares that anyone who tempts the fates, and places large amounts of their capital in any offshore bank located in a Caribbean financial center has is waking up one morning to find that your millions of US Dollars are gone, and as there is no government insurance or other means of security, the loss is total and permanent. I can tell you from personal experience that it is a devastating, potentially life-changing event that I never want to wish on anyone.

A company, having deposited fifty million at Nevis-based HAMILTON RESERVE BANK, a dodgy offshore institution where a number of its clients have lost their funds, has taken the extraordinary step of filing suit, in a Caribbean court, against the local financial regulatory agency, the Minister of Finance, and the Attorney General, asserting massive violations of the NEVIS INTERNATIONAL BANKING ORDINANCE.

The victim, US-owned INTERCOASTAL FINANCE LTD. alleges that the defendants failed to properly supervise Hamilton's operations, which resulted in a breach of their duty to actively protect depositors and the public, and then later, when issues arose, failed to take control of the bank and its assets, neither revoking its banking license, nor properly winding down the bank's affairs.

In essence, the plaintiff asserts that the defendants were negligent, and violated banking statutes. They blame Nevis Premier MARK BRANTLEY, whom they allege secured their banking license, notwithstanding a clear conflict of interest, and whose political rise was supported by the bank.

Whether this litigation will ultimately affect the NEVIS ISLAND ADMINISTRATION, and result in the people of Nevis having to financially pick up the tab for governmental malfeasance, and this scandal have a knock-on effect on the Caribbean financial structure in general, is a major concern in the region. the case could severely impact the attractiveness of Caribbean offshore financial centers to new foreign investors, who will point to this scandal as evidence of instability, and look to financial services providers elsewhere. Even if a solution is eventually found, Nevis may not easily recover, and if other investors and clients of the bank go down this road, the consequences for Nevis will be catastrophic.