The Government of Belize has revoked the licence of Atlantic International Bank due to deterioration of its liquidity condition.
The government cancelled the bank’s unrestricted ‘A’ Class International Banking Licence following the recommendation of the country’s central bank.
The licence revocation will prevent Atlantic International Bank from conducting international banking business.
Atlantic International Bank licence revoked: Background
In November last year, the United States Federal Trade Commission named Atlantic International Bank in a lawsuit involving fraud related to certain transactions.
Subsequently, the commission secured a temporary restraining order against certain of the bank’s liquid assets in the US.
It is believed that Atlantic International Bank faced increasing liquidity challenges due to reputational damage caused by being named in the lawsuit.
The bank customers also faced extended delays in accessing their money.
The Central Bank of Belize initiated two sets of remedial actions to revive the bank’s condition. However, the liquidity situation continued to worsen.
Atlantic International Bank’s CEO Ricardo Pelayo resigned last month, while its board sought central bank’s intervention.
Assessing the bank’s condition, the central authority recommended revoking its licence.
Furthermore, the central bank appointed a liquidator, Julian Murill, to oversee the operations of Atlantic International Bank and facilitate liquidation of its assets.
In a statement, Central Bank of Belize said that it is the second lender in the international banking sector to have its licence revoked in the last ten months.