From RJR News

Representatives of Jamaica National Building Society (JNBS) are heading to the Cayman Islands on Friday, in an attempt to convince Cayman National Bank to continue cash transfer services.

Money transfer companies, used to send cash remittances overseas, including to Jamaica, face an August 25 deadline to find a new bank or face closure.

Cayman National Bank has decided it no longer wants to provide banking services for money transfer companies in that jurisdiction. This as cash transfer businesses face multiple layers of regulation, mainly from authorities in the United States, to address concerns about cash-based services being used to fund terrorism and launder money.

According to local news agency, Cayman Compass, Robert Hamaty, a Board member of JN Money Transfer, and President of Tortuga Rum, confirmed that executives from the company would be visiting Cayman on Friday. He said they will be meeting with Cayman National Bank to try to extend the deadline and see if they can come up with a new deal to continue the banking services.

Mr. Hamaty said JN has not been able to find a new bank to handle the local cash transfers, and even if the company did find a new bank, it would take two months to get services up and running.

He added that JN offered to increase the fees it pays to Cayman National, if the increasing cost of complying with new rules is part of the decision, but he said the bank did not take up that offer.

According to Cayman Islands Monetary Authority data, residents of Cayman sent almost US$180 million overseas last year through cash transfers, with more than US$110 million of that going to Jamaica.

Western Union closed its Caymanian operation suddenly in July, when Fidelity Bank decided it would no longer be involved in the money transfer business.

For more on this story go to: http://rjrnewsonline.com/local/jn-pressing-for-cash-transfer-services-to-continue-in-cayman