Myth: Proceeds from local crime are laundered through offshore banks

Fact: In many instances Caribbean nations are flagged as high risk nations by banks with which they hold correspondent relationships. These nations are seen as trans-shipment points for drugs from South America going to Europe and the US and that the drug monies are laundered through their offshore banks.

However, offshore banks in these jurisdictions are legally prohibited from doing business with locals and therefore any proceeds from the drug trade, involving locals, cannot be deposited with these banks. These funds are usually laundered in the jurisdictions where the drugs are sold.