By Alfred Sasako
THERE is good news for Pan Oceanic Bank (POB) and it’s largely logging company clients at long last.
Central Bank of Solomon Islands (CBSI) Governor Denton Rarawa told Island Sun this week he was confident the issue of correspondent banking relationship (CBR) should be cleared before the deadline at the end of December this year.
The issue threatens the stability of the nation’s financial system and has implications for the economy.
Mr Rarawa met with the Senior Vice President of the Federal Reserve Bank of New York (FRBNY) and the Group Chief Executive Officer (CEO) of the Crown Agent Bank (CAB) in Bali, Indonesia this week.
He said after the meeting that he was confident the matter would be resolved before the December end deadline.
“I met with Senior Vice President of FRBNY and Group CEO Crown Agent Bank (CAB) here in Bali (on Tuesday) and they are very pleased with the progress POB is making towards complying with the requirements of CAB.
“The Group CEO of CAB has indicated that they will establish a CBR with POB before the deadline. So I am confident that we will meet the end December deadline,” Mr Rarawa said.
Despite this positive development, serious allegations remain. These include ill-treatment of local staff, particularly female officers, appointments to the POB Board of two individuals, said to be identified in the Panama Papers as international money launderers.
Mr Rarawa had earlier acknowledged that these allegations were undermining efforts by CBSI to rectify the issue of correspondent banking relationship (CBR).
He denied there was any substance to these and other allegations contained in a lengthy letter sent to Island Sun this week.