By Garwin Davis, Assistant News EditorTHE REFUSAL of an American financial house to do business with a local engineer on the basis that he has Jamaican ties, has raised alarm bells in the Foreign Affairs Ministry, which says it will be launching its own investigations to determine whether there are quiet attempts to blacklist the country.
George P. Lechler, who only recently was sub-contracted to do work on the Government's North Coast Highway project, was last week unceremoniously dumped by his overseas financial brokerage firm of 13 years.
The reason given to Mr. Lechler was that the firm - A.G. Edwards and Sons, Inc., operating out of Norfolk, Virginia - has been advised to immediately cease all business deals with persons residing in Jamaica.
"We are no longer permitted to conduct business with persons residing in Jamaica," said a letter from the firm to Mr. Lechler.
"We are also prohibited from maintaining any previously established relationships with clients residing in this country, even if their residency in that country is only temporary. Consequently, it is with sincere regret that we must advise you to cease all activity of any kind, including checkwriting and Visa debit card transactions, and give us written instructions to immediately transfer and/or liquidate your assets and pay the proceeds to you."
But Minister of State in the Ministry of Foreign Affairs, Senator Delano Franklyn, said he was not aware of the U.S. State Department blacklisting Jamaica as a haven for money laundering, noting that he would definitely be checking into the allegations.
"This is the first time I am hearing about this," he said. "This is something we definitely will have to look into."
Mr. Lechler said he was floored by language used in the letter and immediately called executives of the firm for an explanation. He said the manager, Robert Ballard, told him that the U.S. State Department had indicated to his company that Jamaica was on a list of countries that harboured money launderers and that there were serious penalties to pay if they continue to do business with persons residing - even on a temporary basis - in Jamaica.
When The Gleaner contacted Mr. Ballard yesterday, he referred queries to the firm's communications department. Head of that department, Margaret Welch, said there was an issue of privacy involved and that she would have to get a few "clearances" before she could comment.
UNAVAILABLE FOR COMMENT
Calls to the U.S. State Department in Washington and the local embassy in Kingston did not offer any assistance either as officials were unavailable for comment.
But up to two years ago, the State Department's position on Jamaica was not entirely favourable.
"While not a significant regional financial center, tax haven, or offshore banking center, nevertheless, some money laundering does occur, most likely through the purchase of assets, such as real estate or cars, rather than financial instruments," it said.
This assessment came even after Jamaica effected its new money laundering law in 1998, which had originally been passed in Parliament in 1996.
Mr. Lechler said his relationship with A.G. Edwards began when he invested US$100,000 that he inherited on the death of his mother in 1990.
"I am an American citizen who has been living in this country since 1957," he said. "All my ties, my business deals are done from here... this is home."
Meantime, A.G. Edwards has told Lechler that the firm "cannot accept any orders that would establish new positions or add to existing positions in your account," said the letter.
"Only orders to close existing positions will be accepted, e.g., sell orders to close existing long positions or buy orders to close existing short positions. Be aware that once we receive transfer instructions, we can no longer accept instructions to liquidate positions in your account."
