The Financial Services Authority (FSA) and the Financial Intelligence Unit (FIU) have launched an investigation into allegations of financial irregularities regarding Loyal Bank Limited.
The allegations are contained in an indictment unsealed by the United States Department of Justice on March 1, 2018 implicating a number of companies and individuals, including one of its licensees – Loyal Bank Limited – in securities fraud in several countries including the United Kingdom, the United States of America and Belize.
The scheme alleges stock manipulation, money laundering and other illicit operations out of which US$225,000 out of US 50 million dollars is alleged to have been facilitated by Loyal Bank Limited.
Loyal Bank Limited is an international bank licensed to operate from within St. Vincent and the Grenadines and is regulated by the FSA.
As with all financial institutions under the regulation of the FSA, the Bank is subjected to offsite and onsite supervision and monitoring and any deviation from the law or regulatory beaches must be addressed by the FSA.
The Financial Services Authority said in a statement issued on Monday March 5, 2018, that it has thus launched its own investigation into the allegations and is, together with the relevant authority for money laundering and financial crimes – the Financial Intelligence Unit – investigating the alleged actions of the Bank officials involved and is monitoring any actions which the Bank itself is taking in view of these developments and allegations.
It said the alleged actions by the two senior officials are actions which are not in keeping with the laws of St. Vincent and the Grenadines.