Pago Pago, AMERICAN SAMOA — As ANZ Guam Inc., d/b/a ANZ Amerika Samoa Bank on Monday this week initiated the process of closing down its operations in the territory, residents and businesses alike remain concerned over the lack of a local federally insurance financial institution, through the Federal Deposit Insurance Corporation (FDIC), leaving only the Territorial Bank of American Samoa, which is not FDIC insured.

Local residents believe that the Administration should have done more to ensure there is an existing FDIC member-bank on island, giving customers confidence in their banking needs, instead of depending solely on the government owned TBAS.

“There has always been two banks on island for a very long time but now we have to depend on TBAS, another government entity, that the people have to deal with,” said an ANZ customer, who claimed having to wait for two hours last week at the TBAS branch in Utulei to open an account.

This was echoed by other residents, who believe the government should have done more to at least keep ANZ on island longer, until an FDIC-member bank is operational in the territory, just like what the Togiola Administration did before FDIC-member Bank of Hawaii officially closed its local operations a few years ago.

The Australia New Zealand Bank Group (ANZ) announced on Mar. 31 that it would exit US community banking in American Samoa to strengthen its focus on its core Pacific markets. The local ANZ branches are set to shutdown on Sept. 30.

As previously reported by Samoa News, early last month, Lt. Gov. Talauega Eleasalo Ale said ASG has no intention of asking ANZ to remain in the territory, saying that ANZ has made a business decision to leave American Samoa. And that decision was made years ago and in fact ANZ had stopped a very long time ago making loans or investing in American Samoa. (See Samoa News edition July 5 for details.)

As it winds down its American Samoa operations, ANZ sent out a notice in April to customers, of its decision, telling them to: “Act now to ensure switching banks is a smooth process” — switching to a preferred financial institution. The notice was also published on the bank’s website.

ANZ re-issued the reminder notice last month including a media advertisement (see the latest ad in today’s Samoa News edition), to “act now” and also outlined the timelines of actions that are planned. ANZ points out that local residents will continue to have the option to open accounts with off-island institutions online, including with FDIC insured banks and National Credit Union Administration (NCUA) insured credit unions, subject to those institutions’ terms and conditions.

Bank customers, contacted by Samoa News in the past two weeks, suggested that an NCUA insured credit union open in the territory, if efforts to get an FDIC member bank to open locally takes too long. They have also suggested that ASG work with the local group Community Bank of American Samoa, which wants to buy TBAS, which would allow the bank to apply for FDIC membership.

“Based on what’s been reported in Samoa News and other local news media, the ASG is not inclined in the very near future to sell TBAS, so the best option now, is an insured credit union,” said a local resident, who works in the private sector and alleges having problems dealing with TBAS, but wouldn’t elaborate further.

The local resident noted that he is aware of several in the community who have joined federal credit unions that are member-owned and not-for-profit credit unions serving the military, veterans and their families

The ANZ notice to its customers also provided what the bank says is some “helpful information to ensure switching your bank and transferring your money is a smooth process.”

At top of the list of 'helpful information' is that as of 6p.m on Aug. 1, the bank began the official process of closing its local operations: the bank’s EFTPOS terminals and ATMs would cease to operate and its International Access would be deactivated.

(Samoa News notes that the EFTOPS or electronic funds transfer at point of sale — referred to by many as simply the credit card terminal machine — is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale.)

Additionally, Automated Clearing House (ACH) Origination, BillPay payments and Wire Transfers through ANZ Online Banking (OLB) “will not be able to be made and/or processed except for the purpose of transferring your money to close your account,” said ANZ.

Furthermore, Time Certificate of Deposit (also known as ‘Time Deposit’ or TCD) auto-renewals will cease.

Customers who used ANZ accounts to pay credit card bills off island are concerned that some US banks, that issue bankcards — such as Master Card — do not recognize TBAS. For example, Samoa News has learned that there are local residents, who hold Master Cards issued by Premier Bankcard, which does not recognized TBAS as an “external bank” for use to pay bills.

TBAS’ routing number, is not accepted or recognized by Premier Bankcard.

For the EFTPOS terminals, a majority of merchants on island, use these ANZ terminals. A handful of merchants visited by Samoa News over the weekend and on Monday this week, say that they were informed by ANZ that they would be given at least a week or sufficient time, for when their credit card machines (POS) will no longer be valid for use.

“For us, we are still using the ANZ terminal to process debit and credit cards, while waiting for the final word from ANZ but at the same time, we have already requested a terminal from TBAS and at least two U.S based merchants that process credit/debit cards, for a terminal,” said a senior clerk at one of the local stores.

Some merchants have either enrolled using a PayPal account to accept credit and debit cards for payment, or are no longer accepting them while awaiting the appropriate credit card terminal for processing payments.

With ANZ-ATMs no longer in use, customers have to depend on TBAS-ATMs to get cash. And if your ATM card, including debit card is a non-TBAS account, there is an ATM fee to pay, which is automatically deducted from your account. And the same applies with debit cards issued by any US based bank and used to withdraw money through a TBAS ATM.

For ANZ checks, many businesses have already set a timeline of when they will no longer accept checks drawn from an ANZ account, citing that the bank is closing its local operations.

According to the ANZ timeline, as of 2p.m on Aug. 31, the Wire Transfers Over the Counter will not be able to be made and/or processed. And by 3p.m on Sept. 30, all ANZ Amerika Samoa branches “will close permanently.”