Jamaica's central bank has advised investor caution on plans by Capital Solutions Limited to partner with an overseas trust company to offer offshore banking services.

Capital Solutions immediately reacted to the release saying it had not in any way solicited funds for the purpose.

"The Bank of Jamaica views with concern, recent announcements in the press relating to the offering of offshore banking services to the Jamaican public by parties that are not licensed to either solicit for or accept deposits or to conduct banking business in Jamaica," said the bank in a release.

The BoJ specifically referred to a Financial Gleaner story which reported on plans by William Massias to partner with Jerry James of American International Deposit and Trust of Colorado, United States on the service.

"In an article entitled, 'Capital Solutions offering offshore banking service', carried in the Financial Gleaner, December 15, 2006, reference was made to the offering of banking services and the offering of deposit facilities as a result of a partnership between Capital Solutions Limited and American International Depository and Trust," said the BoJ release.

"The public should note that neither institution is licensed under The Banking Act or The Financial Institutions Act to carry out such activities in Jamaica."

Breach of local banking laws

The central bank also noted that the taking of deposits without the requisite licence constitutes a legal breach of local banking laws.

But under the signature of president and CEO Massias, Capital Solutions said it has always operated within the law, and that it does not offer offshore banking services nor solicited funds for the purpose.

"CSL values our relationship with our clients, regulators and the public," said Massias. "We remain committed to the highest ethical practices in the provision of financial services."

At a Kingston reception December 8, Massias had announced that his firm would, starting January, partner with AIDT to offer offshore services to local investors, saying that the funds would be treated as investments.

"We are adding our banking gateway," said Massias at the cocktail function.

"The service will go through Capital Solutions as an investment."

James said then that the minimum investment would be US$200,000.

"The public should therefore refrain from conducting any transaction that would place their funds at risk under any illegal deposit-taking arrangement," said BoJ.

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