So we will simply attempt to make it through it and I will try to monitor it. All eyes are on Venezuela today, and Venezuela's effect on the Caribbean nations from energy to trade and other things are really concerning, specifically Eastern Caribbean countries. So, I think the question that I have is, all six nations of the Company of Eastern Caribbean States are members of the Bolivarian Alliance known as ALBA, that includes efforts to promote regional cooperation and ease poverty; so to what level have ALBA and Petrocaribe increased Venezuela's influence in the Caribbean? I think I can respond to that concern greatly.
Mr. Farnsworth. Mr. Chairman, thank you. And I concur it is the pregnant concern if you will of the area. Venezuela is a country that is in collapse. Financially, some are saying it is no longer a democracy. It is a nation that has severe and lasting internal problems which it is going to take years to get beyond. And so, the relationship that Venezuela has established with a number of nations of the Caribbean in great times has ended up being stretched, since the largesse that Venezuela has been able to frankly hand out or to offer a concessionary on concessionary terms has been much constrained in the current environment.
I think what I would say remains in the present environment, because of the difficulties that Venezuela is having and honestly because of the opportunities that we have in the United States through the entire transformation of energy that we have seen in our own country over the last several years, we have an opportunity to come into the Caribbean as a partner and say, look, you understand the programs and the activities that you may have been making with Venezuela are no longer pertinent and we can supply the very same things that you need without the political or without the ideological overhang that you may have had previously - What is internal rate of return in finance.
Duncan. Let me ask you something about that. Is there enough trust of the United States for us to enter that void with those nations? I do not know the response to that. Mr. Farnsworth. Well, I think in the present environment we require to do some groundwork. We require to do some spade work. I suggest, look, Petrocaribe was a very effective program and we comprehend why. I imply, it was prompt, it provided something that the leaders needed when they needed it. It was symbolic. It was very, very easy to describe to people. I imply, we are getting oil from Venezuela.
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It was on one concern. And I think sometimes, when the United States engages with the nations of the Caribbean, we have a lot of well indicating programs and terrific ideas, but they are watered down, right? Not deluded, but watered down in terms of the effort and the focus. Under Petrocaribe, it was one product easily discussed, highly symbolic, and people stated Venezuela's our pal - How to finance an engagement ring. And I think what we require to do much better from the United States' perspective is to develop that level of trust through a continuous continual engagement with the area so that people can say, look, we do trust you. How to finance a house flip.
Mr. Duncan. timeshare exit team costs I personally think energy is an excellent chance for us, no doubt about that. Let me look into money laundering and terrorism funding a bit. There is a big push by the U.S. to have U.S. banks sever relationship with Caribbean-based banking institutions. Does that policy work to reduce money laundering and chances for terrorist organizations to access the monetary system? what happens to my timeshare when i die And that is most likely to Sally. Ms. Yearwood. In a lot of methods it does the opposite, since as soon as U.S. banks vacate the region what you have created in fact is a void and that ends up being filled by other organizations.
So, what is being created is a scenario where there is more opportunity for terrorist funding or something to fail and somebody to exploit that void. So I would say that the U.S. banks definitely require to be a key and vital gamer in the regional money system. Mr. Duncan. I am probably less concerned, and maybe I shouldn't be, but less concerned about terrorism funding through the Caribbean banks as I am about money laundering. What is a consumer finance company. We simply saw in Panama, a big $800 million cash laundering scheme, genuine estate involvement, huge number of staff members involved in a genuine service-- still a cash laundering scheme.
Ms. Yearwood. Part of the problem is the perception of threat versus the reality of the risk. Banks are not leaving the Caribbean because there is money laundering. Banks are leaving the Caribbean since the expenses of compliance are extremely stacked against the banking system. You have little jurisdictions and for every account that you are dealing with you need to put a substantial amount of cash into making sure that the cost of-- that business Home page is clean. But what we have to do in result is create a system where the regulators, the banks, everybody is collaborating, info is being shared, and when details is passed in between the regulators and the Treasury or the regulators and the banks, individuals know where deep spaces are.
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And the problem in the Caribbean is that the economies are small, putting these systems in location costs a lot, however all the Caribbean will tell you that they fulfill the compliance regulations. And so there is a disconnect between what is really occurring and what individuals are stating is happening. I think among the typical problems is the breakdown between what is going on in offshore monetary services and what is going on in banking. And the Panama Documents were really mainly connected to the overseas financial services industry versus the reporter banking and de-risking problem that is currently being faced.
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Mr. Duncan. I am presuming that the Federal Federal government is keeping track of-- in Panama Papers a person is never linked in that and start shifting financial resources around, in potentially, the Caribbean country. I am assuming our Treasury and FBI are monitoring that, I would presume. So I am going to go ahead and accept the ranking member. Mr. Sires. Among the factors that I supported, or I still support the export of energy from this nation is to balance out the influence of Venezuela due to the fact that basically they were using it for political purpose. You understand, if you take a look at the votes they took at the U.N.
So now Venezuela is in difficulty. I think their production is something like 40, 50 percent less, and there is a void there that we can assist fill and, you understand, we can really help in terms of just having a little bit more affect on people. The other thing that stresses me is that on the eastern part of the Caribbean. Generally, we have an Embassy in Barbados and it serves all those islands there. Meanwhile, you have Venezuela, Cuba, Brazil, they all have a presence there. So I was just wondering just how much of a competitive downside this puts us when we do not have, truly, a presence in the Eastern Caribbean.