Financial Services Commission and Jamaica Deposit Insurance Corporation: Update on Pending Subsidiary Financial Legislation
Regulations
The Financial Services Commission (FSC) and the Jamaica Deposit Insurance Corporation (JDIC) are keeping stakeholders informed about developments related to pending subsidiary financial legislation. At present, there are no pending regulations. However, proposals for drafting instructions for Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Supervisory Rules under the Banking Services Act, 2014 and the Bank of Jamaica Act are being developed.
Key Features of Proposed Rules
The proposed rules aim to codify risk-based examinations and oversight processes pertaining to AML/CFT oversight functions of the Bank of Jamaica. Additionally, they will outline areas in the Bank’s AML/CFT Guidance Notes with which compliance will be expressly mandated, allowing the Bank to directly sanction breaches of those requirements.
- Maintaining focus on risks to the system, customers, services, and quality of compliance
- Express triggers for periodic reviews
- Clear frequency and intensity of supervision dependent on risks
- Consolidated supervisory obligations with respect to AML/CFT
- Range of disciplinary and financial sanctions
Supervisory Rules
The international standards on AML/CFT and proliferation (FATF Recommendations 2013) have been updated. The revised recommendations include a number of enhanced requirements for countries to comply with, including the application of a risk-based approach to prevent or mitigate money laundering or terrorist financing.
Non-Financial Legislation
National Identification Registration Act, 2021
The National Identification Registration Act, 2021 has been passed and is expected to be brought into effect shortly. The Act aims to provide for the registration of individuals in Jamaica, ensuring that all citizens have a unique identification number.
Data Protection Act, 2020
The Data Protection Act, 2020 was also passed, seeking to protect Jamaicans from unlawful disclosure of their personal information. The Act sets standards for data processing and outlines exemptions for regulators to co-operate with domestic authorities and international counterparts.
Implementation
Responsibility for implementation and administration of the Acts falls under the Ministry responsible for information and communications technology through the Office of the Information Commissioner.
Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.