So we will just try to make it through it and I will attempt to monitor it. All eyes are on Venezuela today, and Venezuela's effect on the Caribbean nations from energy to trade and other things are extremely worrying, particularly Eastern Caribbean countries. So, I guess the concern that I have is, all six nations of the Company of Eastern Caribbean States are members of Article source the Bolivarian Alliance referred to as ALBA, that includes efforts to promote regional cooperation and reduce poverty; so to what level have ALBA and Petrocaribe increased Venezuela's impact in the Caribbean? I believe I can address that question tremendously.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant concern if you will of the area. Venezuela is a country that is in collapse. Economically, some are saying it is no longer a democracy. It is a country that has severe and long lasting internal issues which it is going to take years to get beyond. And so, the relationship that Venezuela has established with a variety of countries of the Caribbean in excellent times has actually become stretched, due to the fact that the largesse that Venezuela has been able to honestly distribute or to provide a concessionary on concessionary terms has been much constrained in the present environment.
I guess what I would state is in the existing environment, since of the difficulties that Venezuela is having and honestly because of the chances that we have in the United States through the whole transformation of energy that we have seen in our own nation over the last several years, we have an opportunity to come into the Caribbean as a partner and say, look, you understand the programs and the activities that you may have been finishing with Venezuela are no longer appropriate and we can supply the exact same things that you need without the political or without the ideological overhang that you may have had formerly - How to finance an investment property.
Duncan. Let me ask you something about that. Is there enough trust of the United States for us to enter that space with those nations? I don't know the response to that. Mr. Farnsworth. Well, I think in the existing environment we require to do some foundation. We need to do some spade work. I suggest, look, Petrocaribe was an extremely successful program and we understand why. I suggest, it was timely, it provided something that the leaders required when they required it. It was symbolic. It was very, very simple to discuss to individuals. I indicate, here we are getting oil from Venezuela.
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It was on one concern. And I believe often, when the United States engages with the countries of the Caribbean, we have a lot of well suggesting programs and wonderful concepts, however they are diluted, right? Not misguided, however watered down in regards to the effort and the focus. Under Petrocaribe, it was one item easily explained, extremely symbolic, and people said Venezuela's our buddy - How to finance an engagement ring. And I think what we require to do much better from the United States' perspective is to build that level of trust through an ongoing sustained engagement with the region so that individuals can say, look, we do trust you. What happened to yahoo finance portfolios.
Mr. Duncan. I personally think energy is a great opportunity for us, no doubt about that. Let me explore cash laundering and terrorism financing a little bit. There is a big push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking institutions. Does that policy work to minimize cash laundering and chances for terrorist organizations to access the financial system? And that is most likely to Sally. Ms. Yearwood. In a lot of methods it does the opposite, due to the fact that once U.S. banks vacate the region what you have actually created in reality is a space and that becomes filled by other organizations.
So, what is being created is a circumstance where there is more chance for terrorist financing or something to go incorrect and someone to exploit that space. So I would say that the U.S. banks absolutely need to be a key and essential player in the regional money system. Mr. Duncan. I am most likely less worried, and maybe I should not be, however less concerned about terrorism financing through the Caribbean banks as I am about cash laundering. Which of the following approaches is most suitable for auditing the finance and investment cycle?. We just saw in Panama, a huge $800 million money laundering scheme, real estate participation, substantial number of staff members included in a genuine business-- still a cash laundering scheme.
Ms. Yearwood. Part of the problem is the perception of danger versus the reality of the danger. Banks are not leaving the Caribbean due to the fact that there is money laundering. Banks are leaving the Caribbean because the costs of compliance are extremely stacked against the banking system. You have little jurisdictions and for each account that you are dealing with you need to put a big amount of money into ensuring that the cost of-- that business is tidy. But what we have to carry out in impact is create a system where the regulators, the banks, everyone is working together, information is being shared, and when information is passed in between the regulators and the Treasury or the regulators and the banks, people understand where deep spaces are.
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And the problem in the Caribbean is that the economies are small, putting these systems in location costs a lot, however all the Caribbean will tell you that they fulfill the compliance policies. And so there is a detach between what is really occurring and what individuals are saying is taking place. I think among the common complaints is the breakdown in between what is going on in overseas financial services and what is going on in banking. https://simonxzks933.edublogs.org/2022/04/17/indicators-on-what-time-does-security-finance-open-you-should-know/ And the Panama Documents were very largely connected to the offshore financial services market versus the reporter banking and de-risking concern that is presently being dealt with.
Mr. Duncan. I am presuming that the Federal Government is keeping an eye on-- in Panama Papers an individual is never ever linked in that and start shifting funds around, in potentially, the Caribbean country. I am assuming our Treasury and FBI are monitoring that, I would assume. So I am going to proceed and accept the ranking member. Mr. Sires. One of the reasons that I supported, or I still support the export of energy from this country is to offset the influence of Venezuela due to the fact that generally they were using it for political function. You know, if you look at the votes they took at the U.N.
So now Venezuela is in difficulty. I think their production is something like 40, half less, and there is a void there that we can help fill and, you know, we can really help in regards to simply having a bit more affect on people. The other thing that stresses me is that on the eastern part of the Caribbean. Essentially, we have an Embassy in Barbados and it serves all those islands there. On the other hand, you have Venezuela, Cuba, Brazil, they all have an existence there. So I was just wondering just how much of a competitive downside this puts us when we do not have, truly, a presence in the Eastern Caribbean.