- 4 months ago
The recent discovery of millions of U.S. dollars awaiting export has sparked widespread public debate, with many questioning why a bank would move physical cash overseas in an age of electronic banking. While billions of dollars are transferred digitally every day, financial institutions do still transport banknotes internationally under tightly controlled conditions. Tonight, we explain why banks move physical cash, how the process normally works, and what investigators typically examine to determine whether a shipment complied with international banking and security standards.
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00:00NCB Merchant Bank Limited has confirmed that the U.S. 2 million seized by customs and excise officials at the
00:07Piako Airport belong to the bank.
00:09The bank also says the cash was being transported in the ordinary course of business and that the shipment complied
00:17with all applicable laws, regulations and industry protocols.
00:21The express questioned the NCB Merchant Bank and its executive, Chief Executive Officer Marley A. Kreese, who provided the following
00:30answers.
00:31The cash referred to belonged solely to the bank. It was being couriered in the normal course of business in
00:37compliance with all applicable laws and regulations.
00:41He said the bank was contacted by the Customs and Excise Division in relation to the shipment for additional verification
00:49and confirmation.
00:50The bank said it complied with all requests.
00:54Kreese said additional supporting documentation was requested and provided.
00:58As far as NCB is aware, the funds remain in the custody of the central bank awaiting clearance for shipment.
01:06Kreese maintains all usual and required protocols were adhered to.
01:11Well, the recent discovery of millions of U.S. dollars awaiting export has sparked widespread public debate with many questioning
01:20why a bank would move physical cash overseas in an age of electronic banking.
01:27Tonight, we explain why banks move physical cash, how the process normally works and what investigators typically examine to determine
01:35whether shipment is compliant.
01:39Most people think of moving money between countries, they think of wire transfers, but commercial banks around the world still
01:47move physical currency across international borders.
01:50Our research has revealed that these shipments are uncommon compared to electronic transfers, but they remain a normal part of
01:58international banking.
02:00Our research was based on international banking and cash in transit standards published by organizations such as the Financial Action
02:08Task Force, the Federal Financial Institutions Examinations Council, and the World Customs Organization recognized authorities on these procedures.
02:18Banks may transport physical U.S. currency for several legitimate reasons.
02:24They may have accumulated more U.S. cash than they need and want to return the access to correspondent banks
02:30overseas.
02:31They may need to replenish supplies of U.S. banknotes in another jurisdiction, or older or damaged notes may be
02:39shipped to be replaced.
02:41Banks may also move cash to support foreign exchange operations, balance their cash inventories,
02:47or meet customer demand for U.S. currency.
02:50The process usually begins inside the bank's vault.
02:54The banknotes are counted using high-speed currency machines authenticated to detect counterfeit notes,
03:00sorted by denomination and bundled according to international banking standards.
03:05Every bundle is recorded and reconciled against the bank's internal cash records.
03:11The cash is then placed into tamper-evident security bags or sealed containers,
03:16fitted with uniquely numbered security seals designed to show any attempt at interference.
03:23At the same time, extensive documentation is prepared.
03:26That documentation can include shipment manifests, insurance certificates, declarations of value,
03:33customs paperwork, export documentation, and detailed chain of custody records
03:39identifying every person or company responsible for handling the shipment from beginning to end.
03:45The shipment is then transferred under strict security.
03:49Rather than using an ordinary courier service, banks generally rely on special cash logistics companies
03:55that transport high-value currency worldwide using armored vehicles,
04:00trained security personnel, GPS tracking, and strict handling procedures.
04:05The cash is taken to the airport where customs officials review the relevant documentation
04:11before the shipment undergoes aviation security screening.
04:15Once cleared, it's loaded as secured cargo for transport.
04:19On arrival overseas, customs authorities process the shipment before it's delivered to the receiving bank or cash vault.
04:26The receiving institution recounts the money, verifies the seals, and documentation,
04:32authenticates the banknotes, and credits the sending bank's account.
04:36Throughout the journey, every transfer of responsibility is documented to preserve an unbroken chain of custody.
04:43Financial experts say those safeguards are designed to ensure every dollar can be accounted for
04:49from the moment it leaves the vault until it reaches its final destination.
04:54So what attracts the attention of investigators?
04:58Well, experts say transporting millions of dollars in cash is not by itself unusual for a commercial bank.
05:05Instead, investigators focus on whether every required procedure was followed.
05:10Among the questions they seek to answer are whether the shipment was properly declared to customs,
05:16whether all supporting documentation accompanied the cash,
05:19whether the shipment was insured, whether an approved cash logistics provider was used,
05:25whether security protocols were maintained throughout the journey,
05:28and whether there was a complete and verifiable chain of custody.
05:33Investigators also examine whether the shipment complied with anti-money laundering regulations,
05:39airline cargo requirements, and banking procedures.
05:42Questions may also arise about how the money was packaged.
05:46While banknotes are ordinarily expected to be secured in sealed, tamper-evident bank cash bags or security containers,
05:55experts note that an outer-woven polypropylene sack, commonly known in Trinidad and Tobago as a crocus bag,
06:02may sometimes be used simply as an external protective covering during transport.
06:09On its own, the use of a crocus bag does not necessarily indicate wrongdoing.
06:14What matters is whether the cash inside remained properly sealed, documented,
06:19and continuously accounted for throughout the shipment.
06:22Ultimately, investigators assessed the totality of the circumstances,
06:27not just the amount of money or the appearance of the packaging.
06:31The focus is on whether the shipment complied with banking procedures,
06:35customs requirements, aviation security rules,
06:38and international anti-money laundering standards from departure to destination.
06:45We asked Finance Minister Divinjanath Tanku for some insight into the procedure
06:50and what could have been the red flag in this instance to cause concern for customs officials.
06:56He said the answers ought to be directed to the Central Bank of Trinidad and Tobago.
07:01Governor Larry Hawaii did not respond to our request for information up until news time.
07:06will be presented to number five foundationalities as well.