Antigua's Director of Gaming, Kaye McDonald has announced that Leroy King, longstanding CEO of the Financial Services Regulatory Commission has been sent on 55 days leave following the collapse of Stanford's global empire.

King had earlier said he had received no customer complaints or credible evidence that would require a formal probe of Stanford International Bank, the Caribbean arm of Stanford Group, which was being looked at by U.S. regulators.  

Later that day he said his agency was responding to inquiries from U.S. investigators.

But King re-iterated that no customers have complained and no credible evidence had emerged to trigger a formal investigation. The agency's last examination of Stanford, a few months ago, raised no red flags, he said.

Deputy FSRC Administrator, Trevor Mathurin, advised that Stanford International Bank had always been a model institution in its 20 years of operation.

"It was indeed satisfactory," King said in a telephone interview. "We have no credible information coming to us to say that they are not sound."

Mr King also served as Chairman of the Social Securities Board, which was mired in Medical Benefits Fund fraud claims that linked Stanford.

The announcement of leave also comes weeks after the US Department of State placed Antigua on a list of the world's major money laundering countries as a "jurisdiction of primary concern."

For the sixth year running the small twin Island nation has been named and shamed by International Narcotics Strategy Report. "Illicit proceeds from the trans-shipment of narcotics and from financial crimes occurring in the United Sates also are laundered in Antigua & Barbuda," warned the Report.

Weeks earlier, according to the Daily Observer newspaper, McChesney Emanuel, Antigua & Barbuda's Consul General based in New York urged, "I am of the firm view that the FSRC top brass should resign."

However, Dr Errol Cort, Minister of Finance & Economy, responded that there was always room for improvement but he had not lost confidence in the regulator, continuing "that body has the requisite human resource capacity. They are governed by the requisite laws to be able to adequately regulate the offshore financial sector as best as anywhere in the world."

The FSRC was appointed in 2002 after rare country Advisories were issued by both the US and UK Governments, which resulted in major amendments to Antigua's International Business Corporations Act and changes to the regulatory regime.

Mr King promised that there will be a reduction in regulatory gaps which will make it more difficult for international organisations to be critical of the jurisdiction. These initiatives will add to the Commission's responsibilities but we are very committed to being proactive in the regulation and supervision to safeguard the integrity of the jurisdiction."

Mr. King claimed he was anxious to have the large U.S. banks conduct their business out of Antigua and Barbuda. "Most of them have opened businesses in other jurisdictions with less stringent regulatory platforms, which make it very difficult to entice them to move to Antigua and Barbuda. However, when a potential investor or client looks more keenly at what we are doing on the regulatory side, our platform is equal or better than other jurisdictions. There are real sound and measured reasons for financial institutions to do business in Antigua and Barbuda. We have a stable economy, smooth electoral transitions every five years, low crime rates and the wealth management businesses are operated with strict confidentiality."

Meanwhile, Antigua's Caribbean FAFT triple 'A' rating is seemingly intact and the Eastern Caribbean Securities Regulatory Commission's seems content for the continued issuance of misleading and misrepresentative investment Prospectuses, which omit Antigua's expropriation of the American-owned Half Moon Bay Resort.

Antigua's financial and gaming services sectors remain open for business as usual.

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