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There has been much public commentary surrounding the criminal charges against Alliance Investment Management Limit (AIML), the Bank of Jamaica (BOJ) first suspending then terminating the licence of Alliance Financial Services Limited (AFSL)  and Alliance Finance Limited (AFL) admitting to a number of breaches.

Both Peter Chin and Robert Chin, former lead principals of the Alliance group of companies are of the view that the Bank of Jamaica gave no quarter to them and allowed Alliance’s business to go under before being sold to Sagicor.

Despite the Bank of Jamaica insisting that AFL were not a licensee and therefore not authorised to carry out lending in foreign currency and accepting deposits, both Chin brothers maintain BOJ’s unyielding and renitent manner damaged their reputations irreparably and had the effect of crippling a business built over decades, forcing them to walk away from it.

They now want it brought to the public’s attention that the Alliance team have always sought to be compliant with the law and requirements stipulated by the regulators. In fact, they declare, that when they discovered its transactions (which were not prohibited under the then presiding Money Lending Act) would constitute a breach of the Microcredit Act of June 2021 and restrictions imposed by S.22 of the Bank of Jamaica Act, it expeditiously moved to report this to the Bank of Jamaica to ensure that it did not run afoul of the Central Bank’s stipulations. In other words, they sought to be laudable corporate citizens.

Additionally, it must be noted the Chins say, that other entities were doing exactly what Alliance was engaged in but their heads were not placed on the guillotine block.

The Chin brothers provided documentary evidence to Our Today, dated September 24, 2021, showing that Alliance wrote to the Deputy Governor Dr Wayne Robinson furnishing him with correspondence indicating that it had completed the process of clearing its foreign currency loan book and that the hard copies would be delivered to the Bank of Jamaica on Monday, September 27, 2021. The Chins added they went further, requesting a meeting with the Bank of Jamaica to ensure they were above board and fully compliant with the relevant regulations.

They ask attention be drawn to pertinent correspondence from Senior Deputy Governor Dr Wayne Robinson where he writes, “ The Bank notes Alliance Finance Limited advice and the confirmation provided by your external auditor that the process of converting or liquidating all foreign currency loans on your books are complete.

“Bank of Jamaica expects that AFL will remain compliant with the obligations pursuant to Section 22 of the Bank of Jamaica Act.

The Chin brothers still remain aghast that they found themselves charged and their licences first suspended and then taken away by the Bank of Jamaica two months later.

“They were penitent, forthright and came forward to make amends but despite this, they were hung, drawn and quartered by the Bank of Jamaica. Why?  Why was the Bank of Jamaica so harsh and were so quick to judgement? Questions must be asked,” said a lawyer connected to the criminal case.

For their part, the way the Chin brothers see it, the Bank of Jamaica acted hastily and its imperiousness and heavy-handedness cost them their business which they had to sell for north of J$3 billion. They refute having loaded pockets but draw attention to having to clear off debts, pay off staff, and meet other financial obligations. The sums received were not top of the market but rather they had to settle for what could get from an auction sale.

The Bank of Jamaica has reiterated that Alliance and the Chin brothers were under investigation for some time, in fact before Richard Byles came on board as Governor.

It again cites that the Chin and AFL readily admit to acting in contravention of the BOJ Act. 

Senior officers of the Bank of Jamaica retort that AFL did not hold a licence to conduct business and were dead and buried when the Chins and the company pled guilty. 

The Bank of Jamaica maintains it did the right thing, it did its job as the country’s leading banking and financial services regulator.

“We cannot run a banking network if people who are not fit and proper are working in it,” said one of its officers.

Deputy Governor Natalie Haynes added: “ If people  are breaking the legislation, then we take action.” 

The Chins have revealed that while the investigation into the company AFSL was going on, they were prepared to remove themselves from the company until they were absolved. 

They claim the Bank of Jamaica remained unremitting and did not allow the company to continue operations. This rigid stance therefore meant they were left with the only option – to sell their business.

“How can the Bank of Jamaica say we were not fit and proper before we were tried and convicted? People see this as unfair, ” said Peter Chin.

“The Bank of Jamaica saw it fit to suspend AFSL’s licence to conduct cambio and remittance services with immediate effect even though no charges have been laid against it. The immediate sanction caused severe and debilitating damage to AFSL and the reputation of Peter and Robert Chin,” read a statement from the Chins.

Mark Kappart speaking from New York said: “ I suspect the Chin brothers will be looking to sue the Bank of Jamaica for damage done to their reputations. They built a very good business that at its height controlled 30 per cent of the Money Gram transactions and close to 9 per cent of the remittances coming into Jamaica. 

“What you have to understand here is that the Bank of Jamaica is insisting they breached regulations which the Chins have admitted to. We all know they were charged with criminal offences under the Proceeds of Crime Act which were thrown out. Now as a result of that FID charge and investigations, they lost their ” fit and proper” accreditation and were forced to sell their business. Breaching regulations and being a malicious financial criminal like Bernie Madoff are two different things. After the SSL fiasco and the mismanagement there, the Alliance situation doesn’t make Jamaica look good on the international financial scene. People are looking on and saying to themselves, those fellas down in Jamaica are a bunch of cowboys where anything goes. You are taking one hell of a risk doing business there.”