The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

JAMAICA - CIBC FirstCaribbean’s top regional executive yesterday said he was “reasonably satisfied” that the necessary Know Your Customer (KYC) policies were in place and being followed, even though a disgraced FIFA official hid nearly $1 million from the US tax authorities in a Bahamian account.

Rik Parkhill, CIBC’s chief executive, said the bank was conducting a “thorough review” into revelations that one of its executives deposited part of a $10 million FIFA bribe into a Nassau-based account.

Mr Parkhill, who was speaking to Caribbean journalists at a press conference yesterday ahead of CIBC FirstCaribbean’s third annual Caribbean Infrastructure Conference in Montego Bay, said the FIFA-related revelations were certainly a concern for the bank and its overall reputation.

“We have an ongoing review of all of our policies and processes associated with money laundering and fraud,” he said. “I think we have made substantial strides over the last three to four years in terms of making sure that we have the most robust regime possible.

“Certainly, we are concerned when any financial institution is linked to FIFA or any other organisation where there are allegations of misconduct. We are doing a thorough review and it does impact on not only our bank’s reputation, but the FIFA issues aren’t just Caribbean issues - there are a huge number of onshore banks FIFA used as well, outside of the Caribbean.”

Tribune Business reported earlier this month that a Bahamian CIBC FirstCaribbean banker made a round-trip to New York to pick up a $250,000 cheque from disgraced US soccer official, Chuck Blazer.

The monies, allegedly part of a $10 million ‘bribe’ to influence voting on which nation would host the 2010 FIFA World Cup, were brought back to Nassau to be deposited in Blazer’s secret CIBC FirstCaribbean account.

Court documents reveal that the banker flew back to the Bahamas on May 3, 2011, and deposited the $250,000 into Blazer’s CIBC FirstCaribbean bank account in Nassau. The $250,000 cheque payment to Blazer, who has pleaded guilty to the allegations against him, stemmed from the campaign to host FIFA’s 2010 soccer World Cup.

Blazer has also agreed to forfeit 50 per cent of the $1 million he had stashed away in his secret CIBC FirstCaribbean International Bank (Bahamas) account.

The plea agreement between the US federal authorities and Blazer, which was unsealed late on Monday, discloses that the American soccer executive had amassed $975,751 in his Nassau-based account by 2010.

“The defendant [Blazer] agrees that.... the value of his unreported account at FirstCaribbean International Bank (Bahamas) in 2010 was $975,751.48, and he is subject to a civil monetary penalty of 50 per cent of that amount, or $487,875,” the plea agreement states.

Blazer, the former general-secretary of soccer’s governing body for North and Central America, and the Caribbean, previously pleaded guilty to tax evasion charges and failing to declare his ownership of the CIBC Bahamas account to the US tax authorities.

Tribune Business previously reported how he admitted to “wilful failure” to report his beneficial ownership of a foreign bank account, as he had failed to inform the US Treasury Department and Internal Revenue Service (IRS) of its existence for income tax purposes.

Mr Parkhill yesterday said: “We have worked closely with our regulators around the region. We cooperate with any investigation. We look at our KYC processes and policies.

“In terms of ‘Know Your Client’ processes, I think we are reasonably satisfied. There is always room for improvement, but I think we are reasonably satisfied that our policies are being followed and are in place.”

Mr Parkhill said that up to this point, CIBC FirstCaribbean had not been asked to cooperate in any investigation by US authorities regading the FIFA situation.

“I don’t think that there are any policies or processes that are absolutely fail safe, but I think we are reasonably satisfied that we have the right regime in place,” said Mr Parkhill.

He declined to comment on what action has been taken against the CIBC FirstCaribbean Bahamas employee who made the round-trip to New York to collect Blazer’s cheque.