So we will just try to survive it and I will try website to monitor it. All eyes are on Venezuela today, and Venezuela's influence on the Caribbean countries from energy to trade and other things are extremely concerning, especially Eastern Caribbean countries. So, I think the question that I have is, all 6 countries of the Organization of Eastern Caribbean States are members of the Bolivarian Alliance referred to as ALBA, which consists of efforts to promote regional cooperation and minimize poverty; so to what degree have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I think I can address that concern tremendously.
Mr. Farnsworth. Mr. Chairman, thank you. And I agree it is the pregnant concern if you will of the region. Venezuela is a nation that is in collapse. Financially, some are saying it is no longer a democracy. It is a country that has extreme and enduring internal issues which it is going to take years to get beyond. And so, the relationship that Venezuela has established with a number of countries of the Caribbean in great times has actually ended up being strained, since the largesse that Venezuela has had the ability to frankly hand out or to supply a concessionary on concessionary terms has been much constrained in the existing environment.
I guess what I would say remains in the existing environment, since of the troubles that Venezuela is having and frankly due to the fact that of the opportunities that we have in the United States through the entire transformation are there any good timeshares of energy that we have actually seen in our own nation over the last a number of years, we have a chance 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 relevant and we can offer the same things that you require without the political or without the ideological overhang that you may have had formerly - What does ltm mean in finance.
Duncan. Let me ask you something about that. Exists enough trust of the United States for us to step into that void with those countries? I https://writeablog.net/derryl0og8/some-enable-10-years-to-be-paid-off do not know the response to that. Mr. Farnsworth. Well, I believe in the existing environment we require to do some foundation. We need to do some spade work. I suggest, look, Petrocaribe was a really effective program and we understand why. I mean, it was prompt, it provided something that the leaders needed when they needed it. It was symbolic. It was really, really easy to discuss to people. I imply, we are getting oil from Venezuela.
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It was on one concern. And I think often, when the United States engages with the countries of the Caribbean, we have a lot of well implying programs and wonderful ideas, however they are watered down, right? Not misguided, but diluted in terms of the effort and the focus. Under Petrocaribe, it was one item easily discussed, highly symbolic, and people said Venezuela's our buddy - How to finance a franchise with no money. And I believe what we need to do much better from the United States' viewpoint is to build that level of trust through an ongoing continual engagement with the area so that individuals can state, look, we do trust you. What is a consumer finance account.
Mr. Duncan. I personally think energy is a terrific chance for us, no doubt about that. Let me look into money laundering and terrorism funding a bit. There is a big push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking organizations. Does that policy work to decrease money laundering and chances for terrorist organizations to access the financial system? And that is probably to Sally. Ms. Yearwood. In a great deal of methods it does the opposite, since as soon as U.S. banks move out of the area what you have produced in truth is a space and that becomes filled by other organizations.
So, what is being developed is a scenario where there is more chance for terrorist financing or something to fail and someone to make use of that void. So I would state that the U.S. banks absolutely require to be a key and crucial gamer in the local cash system. Mr. Duncan. I am probably less worried, and possibly I should not be, but less concerned about terrorism funding through the Caribbean financial institutions as I am about cash laundering. What is a consumer finance company. We just saw in Panama, a substantial $800 million money laundering plan, realty involvement, substantial number of employees included in a legitimate service-- still a money laundering scheme.
Ms. Yearwood. Part of the concern is the understanding of danger versus the truth of the danger. Banks are not leaving the Caribbean due to the fact that there is money laundering. Banks are leaving the Caribbean due to the fact that the costs of compliance are extremely stacked versus the banking system. You have small jurisdictions and for every account that you are handling you need to put a huge quantity of cash into making certain that the expense of-- that business is tidy. But what we have to do in result is develop a system where the regulators, the banks, everybody is collaborating, details is being shared, and when details is passed between the regulators and the Treasury or the regulators and the banks, people know where deep spaces are.
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And the issue in the Caribbean is that the economies are little, putting these systems in place costs a lot, however all the Caribbean will inform you that they meet the compliance guidelines. Therefore there is a detach in between what is in fact taking place and what people are saying is taking place. I think one of the typical grievances is the breakdown between what is going on in offshore monetary services and what is going on in banking. And the Panama Documents were extremely mostly linked to the overseas financial services industry versus the correspondent banking and de-risking issue that is presently being faced.
Mr. Duncan. I am presuming that the Federal Government is monitoring-- in Panama Documents a person is never linked because and begin moving funds around, in perhaps, the Caribbean nation. I am presuming our Treasury and FBI are monitoring that, I would assume. So I am going to go ahead and accept the ranking member. Mr. Sires. One of the reasons that I supported, or I still support the export of energy from this nation is to balance out the impact of Venezuela since basically they were utilizing it for political purpose. You understand, if you take a look at the votes they took at the U.N.
So now Venezuela remains in problem. I think their production is something like 40, half less, and there is a void there that we can help fill and, you understand, we can actually help in regards to just having a bit more influence on people. The other thing that frets me is that on the eastern part of the Caribbean. Generally, 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, actually, a presence in the Eastern Caribbean.