Money Transfer Company Folds

Details

Banking

Thursday, 28 April 2011 02:30

By Everton Barnes

Antigua St John's - A company engaged in wire transfer services in Antigua for the past six years has closed, citing an inability to sustain business after its relationship with a commercial banking facility was severed.

Director of Itech Money Transfer Sheldon Lawrence said the company is folding, with about a quarter million dollars owed to customers.

In a letter to the Financial Services Regulatory Commission (FRSC) dated April 26, Itech asked to have its application for a remittances license withdrawn immediately.

“The closure of the banking facilities by RBTT–Antigua has had devastating impact on our ability to deal (on a best practices basis) with our partners (agents) through our network," Lawrence said.

"The bank’s reason is that they are directed by their Barbados Offices to close such accounts, as their correspondent United States bank will not execute such wire transfers. Hence, the company is now operating at significant losses and cannot continue operations in this climate, albeit our best effort to attract partners for merger or buy-in."

According to Lawrence, Itech said it became impossible for the company to effect outgoing/incoming reimbursements with agents, and therefore it could not cover expenses and repay creditors including Partner Plan customers at this time.

Lawrence said he is pursuing two options. First, there is a plan to seek new investors to inject capital into the company, and second, there are plans to liquidate company assets to raise money to pay back customers.

He disclosed that along with wire transfers, Itech also engaged in a saving scheme called Partners Plus. Through this service, customers made a weekly or monthly deposit for a specified time and were later paid a lump sum, similar to the local "box" system.

Lawrence said his company started this service because the revenue from wire transfers was not keeping the company viable.


“Monies are owed to our Partners Plus customers, many of whom have been with the company since we started this service some three years ago,” he added.

Meanwhile, he said his focus is on repaying customers owed amounts ranging from a few hundred dollars to $9,000 in one case. The immediate plan is to be able to begin repaying customers by September, and complete the process by the end of the year.

Itech Money Transfer operated on Redcliffe Street, and had three employees.

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