Financial Crime World

Title: FATF Evaluates Jamaica’s Progress in Anti-Money Laundering and Counter-Terrorist Financing Compliance

The Financial Action Task Force (FATF), an international organization setting standards for combating money laundering and terrorist financing, has assessed Jamaica’s progress in implementing its recommendations.

FATF Ratings

FATF ratings indicate a country’s adoption of the technical requirements of the FATF Recommendations, ranging from Compliant (C), Largely Compliant (LC), Partially Compliant (PC), to Non-Compliant (NC).

Jamaica’s Follow-up Report 2023

Jamaica’s follow-up report for 2023 demonstrates the following ratings:

Risk assessment and applying a risk-based approach

  • Largely Compliant (LC)

National cooperation and coordination

  • Largely Compliant (LC)

Money laundering offense

  • Largely Compliant (LC)

Confiscation and provisional measures

  • Partially Compliant (PC)

Terrorist financing offense

  • Partially Compliant (PC)
  • Largely Compliant (LC)
  • Largely Compliant (LC)

Non-profit organizations

  • Non-Compliant (NC)

…

Powers of law enforcement and investigative authorities

  • Compliant (C)

Other forms of international cooperation

  • Largely Compliant (LC)

…

The evaluation highlights areas requiring improvement for a robust and effective anti-money laundering and counter-terrorist financing framework.

Key Findings and Improvement Areas

Jamaica’s follow-up report for 2023 reveals the following ratings. This evaluation provides an opportunity for reinforcement of efforts in improving areas like:

  • Confiscation and provisional measures (Non-Compliant – PC)
  • Terrorist financing offense (Partially Compliant – PC)
  • Targeted financial sanctions related to terrorism and terrorist financing (Largely Compliant – LC, but improvements needed)
  • Targeted financial sanctions related to proliferation (Largely Compliant – LC, but improvements needed)
  • Non-profit organizations (Non-Compliant – NC)
  • Financial intelligence units (Compliant – C, but improvements can be made in sharing information and coordination)
  • Regulation and supervision of DNFBPs (Non-Compliant – NC)
  • Transparency and beneficial ownership of legal persons and arrangements (Non-Compliant – NC, NC)
  • Customer due diligence (Partially Compliant – PC)
  • Financial institution secrecy laws (Compliant – C, but the implementation may need reevaluation)
  • Higher-risk countries (Non-Compliant – NC, but efforts are underway for improvement)
  • Money or value transfer services (Partially Compliant – PC)
  • Reporting of suspicious transactions (Partially Compliant – PC)
  • Wire transfers (Partially Compliant – PC)
  • Reliance on third parties (Largely Compliant – LC)
  • Internal controls and foreign branches and subsidiaries (Largely Compliant – LC)
  • Regulation and supervision of financial institutions (Partially Compliant – PC)
  • Powers of supervisors (Compliant – C)
  • Transparency and beneficial ownership of trusts (Not assessed)
  • Use of new technologies (Non-Compliant – NC)
  • Designated Non-Financial Business and Professions (DNFBPs) customer due diligence (Partially Compliant – PC)
  • DNFBPs: Other measures (Partially Compliant – PC)
  • Designated Non-Financial Business and Professions (DNFBPs): risk-based approach (Partially Compliant – PC)
  • Money transfer businesses (Partially Compliant – PC)
  • Sanctions (Largely Compliant – LC, but improvements can be made in implementing targeted financial sanctions)
  • External cooperation and mutual legal assistance (Compliant – C)

In conclusion, the FATF evaluation offers valuable insights into the strengths and weaknesses of Jamaica’s anti-money laundering and counter-terrorist financing framework. By focusing on the areas identified for improvement, the country can continue working towards a robust and compliant system.