FSRC and BOI Bank sued

A lawsuit against Antigua and Barbuda’s Financial Services Regulatory Commission (FSRC) and the BOI Bank has brought the operations of both entities into question.

Last week, in an order seen as a victory for the depositor, the court in St Johns ruled that BOI Bank, within 72 hours, place $US2.5 million into an interest-bearing account until the determination of the matter

The man reported that he had tried without success to withdraw his deposit from BOI Bank, which has a branch in Antigua, but to no avail. He then sought the services of Attorney Lawrence Daniels who took the matter to court

Apart from the BOI Bank, Daniel is also taking legal action against FSRC whose Chief Regulatory Officer is Paul Ashe

The reason why the FSRC was named in the lawsuit according to reports was primarily that the financial regulatory body apparently kept renewing the license of the BOI Bank amidst speculations from depositors that they were having problems withdrawing their funds.

Daniel said on radio Monday evening that the consequences for the FSRC could be grave if the funds cannot be repaid to the client.

“If the bank is unable to produce the funds, then clearly the FSRC would have failed and there could be serious consequences. The FSRC is responsible for renewing the license of these banks and therefore they are responsible for ensuring that the persons who are operating under the license operate with a measure of integrity,” he added

The reputed lawyer said he has written numerous times to Chief Regulatory Officer Paul Ashe asking to take action without getting any response.

He had to threaten to sue the FSRC to receive a stalling reply but got nothing concrete, rather having to note that BOI bank’s license was continually being renewed. For this reason, he initiated legal action in Court against both the bank and the FSRC.

Sources close to the matter says an internal investigation is currently under in the matter.

BOI Bank Corporation has been operating in Antigua and Barbuda since 1991.