Butterfield Bank is fighting a public-relations nightmare in the Cayman Islands after retroactive charges levied on customer accounts for unpaid government stamp duty.

Cayman Compass said a software glitch meant that a 25 cent government stamp duty for qualifying debit transactions and internal online transfers was missed for six months through March 2024.

Thursday, the bank informed affected customers that their accounts would be charged on Friday in one fell swoop to make up the difference, although they agreed to cap the unpaid recovery at $15.

The bank told the Compass: “We have informed our clients of the charges, which amount to a maximum of $15 per account, and moved the collection date to 31 October, 2024. We sincerely apologise for any inconvenience caused.”

The publication reported that angry customers complained about the initial 12 hour notice of the special charge.

One complained: “Even if the amount charged for me is small, I made a complaint about it. The way they act and the fact that we received an e-mail the day before without any information is outrageous.”

The publication continued: “Butterfield over the past year has also been coming under fire from disgruntled customers after the bank implemented strict banking compliance requirements amid increased scrutiny over money-laundering threats.

“Some customers who failed to send in the extensive paperwork the bank requested in its ‘Know Your Customer’ requirements found themselves locked out of their accounts.

“Customers, many of whom have had the same bank account and the same job for decades, were asked to provide proof of funds for their current account, as well as notarised or certified identity documents.”