Two years after the unanimous passing of Newlands MLA Alva Suckoo’s private member’s motion, an automated clearing house is launched for local retail banks.
The Cayman Islands Banker’s Association said the automated clearing house, or ACH, is designed to clear and settle electronic transactions and domestic payments in both US and CI currencies.
Mr. Suckoo told Cayman 27 that after 15 years of calls for an electronic clearing mechanism, it’s a welcome step.
“That motion sent a clear message that the legislature wanted it done, and now we have it. My only concern is the pricing model, that they will attach to it, will we have to pay more for the service, I don’t think we should, I think the bank should absorb the cost, because it is going to help their business as well,” said Mr. Suckoo.
The banker’s association says the ACH will be rolled out in phases, with the first being electronic funds transfer. Banks will now be able to electronically transmit bank to bank transactions in real-time, subject to the agreed daily times for exchange between banks.