Disturbing BOJ request
Published:Tuesday | May 18, 2010 | 12:00 AM
The Editor, Sir:
My family operates a small retail and distribution business in a rural town. Since formation, we have used the same bankers and generally felt comfortable - until now.
Recently, we received a request from our bankers to produce a copy of our audited financials for their files. We found it a strange request since we have no borrowing relationship with the bank and all our deposits were placed there. It now turns out that the request is actually a demand, as the Bank of Jamaica requires commercial banks to keep this on client's files. While we understand the implications of money laundering, fraud and the need for regulation, something seems wrong here.
Privileged information
Why should the BOJ force a private, unlisted company to surrender privileged information, in a competitive environment, to possible competitors? How will my banker treat me if my financials show me to be more profitable than my competitor? What happens if we have other deposits elsewhere?
If this information is needed,why not obtain it from the Tax Department since they (a gov't dep't) collect copies with our annual filings? I am sure the BOJ had honourable intentions in drafting this measure. But they must bear in mind the country in which we are all operating. In an effort to evoke compliance, my bank has said the document will be placed on file and nobody will look at it. That raises some other questions.
But if that's true, then why do they need it ?
I am, etc.,
A. LINDO