WILLEMSTAD - Any international payments that need to go through local bank accounts to cancel debts with the Curaçao Refinery or CRU related to the fuel oil in the tanks at Bullenbaai will be scrutinized by local banks.
In the past, Correspondent Banks, both with MCB Bank and with Banco di Caribe, had questions about transactions related to the delivery of 490,000 barrels of fuel oil, a cargo that arrived in Curaçao from Venezuela in September 2022. For Curaçao's banks, doing business with the $22 million worth of fuel oil is attractive, but there are the necessary risks related to the origin of the petroleum product, particularly in the context of sanctions imposed by the United States on PDVSA/Venezuela. Banking compliance regulations stipulated that Banco di Caribe, among others, sent a series of questions to the Curaçao Refinery in the past. These questions were related to compliance requirements imposed by the international bank Stern Bank, which had expressed concern about the origin and ownership of the 490,000 barrels of fuel oil in the tanks at Bullenbaai.
It was on July 3, 2023, that Banco di Caribe raised the alarm for more information. In a letter to the CFO at the Curaçao Refinery, the local bank asked a series of questions. These questions were about Caribbean Petroleum Refinery, former partners, and companies that participated in the delivery of the fuel oil. The questions came after a series of payments for the rental of Bullenbaai were not transferred to Banco di Caribe accounts, as it was a delicate subject. The questions were received by Hans Visssers, CFO at RdK. the bank wanted him to provide a series of information.
As mentioned, the bank wanted to know who the five payments made by Socap (former partner of CPR), on behalf of Caribbean Petroleum Refinery, were for, particularly regarding the allocation of the fuel oil and to whom the cargo of fuel oil at Bullenbaai belonged. Specifically, the bank wanted to know who owned the fuel oil at Bullenbaai between October 2022 and February 2023. Stern Bank also wanted to know where the fuel oil came from. They needed clarity on the invoicing process as well. The relationship between Socap (the company that won the Isla bidding) and CPR was also important to the correspondent bank. To secure the payments, the bank continued to ask numerous clarifying questions. It's logical that both Banco di Caribe and Stern Bank didn't want to take the risk of sanctions.
It's not known whether Refineria di Kòrsou has been able to respond to Banco di Caribe's questions. However, it is a fact that the fuel oil in the tanks at Bullenbaai is in violation of OFAC regulations, which Refineria di Kòrsou allowed to enter against the rules. Local banks will handle both the confiscation and sale of the fuel oil with due caution.