Financial Crime World

Banking Regulation Updates Aimed at Enhancing Consumer Experience in Jamaica

New Service Standards for Deposit-Taking Institutions (DTIs) Implemented by Bank of Jamaica (BOJ)

The Bank of Jamaica (BOJ) has issued eight new service standards for deposit-taking institutions (DTIs) to implement for their automated banking machines (ABMs). The guidelines aim to address long-standing concerns consumers have raised about ABM downtime and lack of adequate cash.

Key Requirements

  • At least 90% of ABMs must be operational at all times.
  • Machines in urban or resort areas should not be out of cash for more than 60 consecutive minutes.
  • Machines in rural areas should not be out of cash for more than three hours.
  • Banks must implement board-approved ABM cash-risk-management policies and procedures to ensure adequate cash levels are maintained.

Consumer Benefits

  • Consumers will have the right to transparent information about ABM fees and charges, with banks required to disclose them prominently at ABM locations.
  • The BOJ will commission assessments of ABM-related fees to determine their reasonableness and relevance.
  • Banks must provide financial education programs to increase customers’ knowledge about the proper use of ABMs and associated risks.

Additional Requirements

  • DTIs must inform customers how to recognize tampered-with ABMs that may facilitate fraud.
  • Banks are expected to have real-time notification systems in place to alert customers when a machine is out of service or malfunctions.

Timeline and Consequences

  • The guidelines were issued on Tuesday, with DTIs given a nine-month transition period to bring themselves into conformity.
  • Non-adherence to the standards may lead to supervisory concerns around safety and soundness, but no monetary sanctions will be applied as a result of breaches.

Reaction from Parliament Member

Member of Parliament Fitz Jackson welcomed the BOJ’s move, saying he is “indeed pleased” that the central bank has acted on the decision of Parliament to establish standards for ABMs. However, he also expressed hope that further regulations will be implemented, including pecuniary penalties for breaches of the standards.

Future Developments

The BOJ’s new framework is part of its Twin Peaks system of financial sector regulation, which is being developed. The guidelines are expected to be supported by appropriate legislation in the future.