Central Bank Introduces Risk Management Framework to Combat Money Laundering and Terrorist Financing

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Introduction

Kingston, Jamaica - November 2018 - The Central Bank of Jamaica has introduced a comprehensive Risk Management Framework aimed at identifying and mitigating risks related to money laundering and terrorist financing.

Key Features of the Framework

• Regular risk assessments will be conducted to identify potential threats and vulnerabilities within the institution’s operations.
• Effective measures will be developed to prevent the use of Central Bank services for illegal activities.
• The framework identifies key areas of risk, including:
  • Corrupt officers and employees
  • Undue influence from the private sector or politically exposed persons
  • Use of Central Bank services to commit or facilitate money laundering or terrorist financing

Operating Risks Identified for Banking Department

• Inadequate awareness among staff of their AML/CFT/CFP responsibilities
• Doing business with politically exposed persons without proper safeguards
• Incomplete information provided by government agencies or customers

Potential Threats and Weaknesses

• Correspondent banks with weak AML/CFT controls
• Transactions involving counterfeit notes, forged signatures, and high cash value transactions

Enhanced Measures to Address Risks

• The Central Bank will apply enhanced measures where a higher risk scenario is identified.
• The institution has committed to making its risk management framework readily available to:
  • Officers
  • Employees
  • Internal auditors
  • External auditors

Ongoing Due Diligence and Emerging Issues

• Ongoing due diligence required in transactions involving the exchange of local coins for Jamaican dollar notes.
• Effective responses needed to emerging issues such as cybercrime and fast-changing typologies related to money laundering and terrorist financing.

Commitment to Combating Money Laundering and Terrorist Financing

According to a Central Bank spokesperson, “The introduction of this risk management framework is a critical step towards ensuring that our institution remains vigilant in combating money laundering and terrorist financing. We are committed to protecting the integrity of our financial system and upholding international standards.”

Availability of the Framework

The Central Bank’s Risk Management Framework has been made available to all officers, employees, internal auditors, and external auditors, as required by regulatory guidelines.