Photo: Former FIU Director, Kent Clare
BELIZE CITY, Thurs. Mar. 30, 2023
Shockwaves rippled through Belize’s financial system when the word spread on Friday, February 20, that Belize’s longstanding Director of the Financial Intelligence Unit (FIU), Kent Clare had been suddenly dismissed.
Minister of State in the Ministry of Finance, Hon. Christopher Coye, who had reportedly wielded the axe on Cabinet’s behalf, said to the media a few days ago in response to questions posed by the reporters that, “I’m not sure what basis you think should be covered, but I understand there is a claim that has been lodged for judicial review, that is now a matter before the court, and I think that has to be dealt with accordingly through attorneys.”
His statement followed another given to Channel 7 via WhatsApp on February 24: “the Caribbean Financial Action Task Force Mutual Evaluation Anti Money Laundering Peer Review is upcoming later this year and it is imperative that we do all that it takes to be given favourable consideration … it was determined that a change is now warranted, a new direction is needed with new energetic leadership in place. Leni Ysaguirre McGann, Deputy Director of FIU, will now serve as Acting Director of the FIU.”
When contacted by media houses following that announcement in February, Clare would only say that he was reserving comment as he examined his legal options; but last week the news broke that he had retained the services of former prime minister and senior counsel the Rt. Hon. Dean Barrow, and had filed a suit in the Belize Supreme Court and is seeking a judicial review by the Chief Justice of the dismissal.
Clare told AMANDALA that he was called to a meeting late Friday afternoon, February 20th, with Minister Coye and Financial Secretary Joseph “Joe” Waight at the Treasury’s offices at the Eleanor Hall Building on Chetumal Street in Lake Independence, Belize City, and was abruptly given notice that he would not be receiving a new 3-year contract. He was surprised, shocked by the dismissal, since he and his staff had been working hard and closely with the Ministry of Finance, the Central Bank and the administration for several months to prepare for an evaluation.
He had served two 3-year terms as FIU Director since being appointed in November 2016 by the Barrow administration, and had been assured several times by the Minister that his contract, which expired in November last year, was being renewed. In fact, said Clare, Joe Waight had forwarded to him a copy of the new contract that only needed the signature of the Minister of Finance, the Honourable Prime Minister John Briceño, three months ago.
Kent Clare was the Commissioner of Income Tax when he was tabbed to replace Marilyn Williams and then Eric Eusey as Director of the Financial Intelligence Unit in 2016. Belize had just failed its inaugural 24-member Caribbean Financial Action Task Force (CFAFT) review and evaluation, and one of the consequences of that failure was that Belize’s banks had started to rapidly lose corresponding banking relationships with US and international banks in the developed countries.
Following the passage of anti-money laundering legislation, Belize was able to gain membership in CFAFT but faced another arduous review of regional financial systems beginning last year, which is to be concluded late next month or in May. Only 2 of the 18 nations so far evaluated, Aruba and Bermuda, have been given their good housekeeping seal of approval. Belize has completed and submitted its Terms of Compliance Questionnaire (TCQ) and is awaiting the arrival of the evaluation team.
This will come as the FIU just recently led Belize’s first and, so far, only successful anti-money laundering conference here on February 13-14th, in conjunction with the US Embassy, the University of Belize and the Financial Services Commission.
Kent Clare is bewildered that he was in effect fired just 10 days later, and while he refuses to speculate, he said that Minister Coye’s last words to him as he left the offices of the GOB Chetumal Street complex still resonate in his memory.
“Director,” Coye said to him, “let me remind you of your oath of secrecy”.
There are now unverified reports that the FIU, which has yet to successfully prosecute any case of money laundering in Belize, is currently analysing and examining a purported transfer of BZ$1.8 million from a foreign PEP (Politically Exposed Person) to a Belizean PEP. Clare would not comment on the allegation when questioned.
Clare returned to what was his office that Friday and could not speak with his staff, who had nearly all left for the weekend, but was able to speak to his Deputy Director Mrs. Leni McGann, who had become the Acting Director with immediate effect.
On his return to retrieve his personal effects the following day, Saturday, he found out that he had been locked out of all the FIU’s internal information systems.
He noted that the Caribbean Financial Action Task Force had faulted Belize’s FIU’s lack of sufficient autonomy, if not independence, from its government administrations as one of the reasons for its initial failures, and there are now questions about whether it will do so again.