Dennise Williams, Staff Reporter
OLINT CORPORATION, barred from currency trading in Jamaica, has registered as a company in St Kitts/Nevis but has no licence to conduct financial services operation in that east Caribbean country to which it told clients it had relocated after its troubles here, according to officials in Basseterre, the St Kitts capital.
"Olint registered as an exempt/off shore company," confirmed Fidela Clarke, the director general of the Registrar of Companies in the twin-island federation. "This means they cannot transact business with citizens of St. Kitts or Nevis."
But Clarke also made clear that neither could Olint, despite its registration, conduct business with foreigners through the St Kitts/Nevis registered company.
LICENCE TO OPERATE
She said: "Because of the nature of their business, currency trading, they need a licence to operate from us to conduct business with anyone in the world. And this applies to any company doing business of a financial nature.
The company is aware that it needs this licence but they have not applied for one."
Olint, controlled by Jamaican broker, David Smith, had branded itself an investment club, offering its members substantially higher than market rates - up to 10 per cent a month - on US dollars placed with it.
But in March Jamaica's Financial Services Commission (FSC), moved against Olint and Smith, saying that they were not licensed as securities dealers. Smith argued that neither he nor Olint required such designations given the club/membership nature of their operation.
Smith could not be contacted for comment and Bryan Winter, the FSC's executive director declined to comment, citing the 'extremely sensitive' nature of the issue.
However, with the Jamaican court granting an injunction against Olint to operate and allowed the FSC's confiscation's of its files, Smith left Jamaica and late last month the company e-mailed clients telling them it would in the future operate from St Kitts/Nevis, a member state of the Caribbean Community (CARICOM).
"Olint Corp St. Kitts is incorporated in the island of St Kitts and Nevis," the e-mailed notice said. "This is where the activities of international currency trading will take place. Olint Corp St. Kitts is registered through the Financial Services Division of the island of St. Kitts & Nevis."
But even beyond Clarke's rejection of Olint's ability to operate from either Basseterre or Charlestown, the Nevis capital, the authorities went further with what was tantamount to a warning to international clients on the worldwide web.
NO AUTHORITY
On May 17, the St Kitts Financial Services, the sector's watchdog agency, posted a statement, making it clear that Olint had no authority to offer its services from that island.
Said that statement: "It has been brought to our attention that Olint Corp or Olint Corporation and/or individuals associated with this entity are claiming to be 'authorised' by the Government of St. Kitts to conduct investment business (currency trading in particular) in or from within St. Kitts.
Neither Olint Corp nor Olint Corporation has ever been licensed to conduct investment or any other business in St. Kitts."
On the island of Nevis, the other partner in the federation, officials also stressed that their administration had granted no authority for Olint to operate.
"There is no company named Olint Corp St. Kitts registered here," said René Arthurton of the New Financial Services Department. And a company cannot just come to Nevis and register - you have to have a registering agent."
