Olympus Bank and Trust, a Canadian-owned private bank, has been forced to close down by the Central Bank of Barbados. This action has be...

Olympus Bank and Trust, a Canadian-owned private bank, has been forced to close down by the Central Bank of Barbados.

This action has been taken over the bank's failure to comply with the provisions of the International Financial Services Act, a law passed in Barbados in 2002, which replaced the earlier Offshore Banking Act, and gives the financial regulators more regulatory powers.

Olympus is owned by a Canadian hedge fund firm, the Norshield Financial Group, which is currently under investigation over the disappearance of $130 million.

Canadian regulators are currently trying to locate more than $300 million of client money that was sent offshore by Norshield.

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.

Norshield, once one of Canada's largest hedge fund companies, was put into receivership last month by the Ontario Securities Commission amid concerns about mounting redemptions and a lack of co-operation with regulators.