Banks Rinsing Funds
One of the facts of financial life that I have had to become accustomed to here in Jamaica is the length of time it takes to deposit an overseas check.
At first I thought that the six weeks that it can take for a check to clear had something to do with how long it takes to clear an international check.
But then, I wrote a check from a U.S. account I own to a Jamaican account, and noticed that the check was withdrawn immediately, but it still took the same 4-6 time period.
What can explain the delay?
I can only imagine that whatever the reason, banks are happy to keep the status quo because they are able to make some money of their own on the cash that is being moved from one account to another.
I could be wrong here, and maybe a banker could set me straight, but I know that a Jamaican who returns is likely to find this annoying, if not downright unethical. The net effect, of course, is that it's easier to keep funds in a foreign account which operates at international standards than it is to transfer money here to Jamaica where it could be put to good use by local banks.
Like many things involving finance, it's just easier to do business elsewhere.
There must be a better way - one that benefits the greater good of all involved.