Two more banks are being investigated by the Barbados securities exchange, according to Central Bank governor Dr Marion Williams, after Olym...

Two more banks are being investigated by the Barbados securities exchange, according to Central Bank governor Dr Marion Williams, after Olympus Bank and Trust, a Canadian-owned private bank, was forced to close down by the Central Bank of Barbados last month. The names of the banks have not been revealed at this stage.

According to Dr Williams, due to onsite inspections of international business companies, a process that started three years ago, the Barbados Central Bank has seen a higher success rate in uncovering acts of wrongdoing in the offshore financial sector.

Olympus is owned by a Canadian hedge fund firm, the Norshield Financial Group, which is currently under investigation over the disappearance of $130 million. According to documents filed in court by the receiver, RSM Richter, the money appears to have moved through several entities based in the Caribbean, but it is not clear where it is now nor how much will be recovered.

The action against Olympus had been taken over the bank's failure to comply with the provisions of the International Financial Services Act.