Financial Fraud on the Rise: Bank of Jamaica Takes Action
The Bank of Jamaica (BOJ) has taken note of recent reports of alleged fraud involving financial institutions in the country, sparking concerns about the potential impact on public confidence in the financial system.
Assurance of Deposit Safety and Security
Despite these developments, the central bank assures that its supervised Deposit-Taking Institutions - commercial banks, building societies, and the sole merchant bank in Jamaica - remain adequately capitalised and liquid. All deposits in these institutions are deemed safe and secure, with ongoing regulatory oversight remaining rigorous to ensure compliance with laws and regulations.
Supervision of Financial Institutions
The BOJ supervises 12 financial institutions, including:
- Bank of Nova Scotia Jamaica Limited
- Citibank, N.A.
- FirstCaribbean International Bank (Jamaica) Limited
- Others
These institutions are required by law to record all assets and liabilities on their balance sheets, ensuring transparency and accountability.
Strengthening Internal Controls
To strengthen internal controls and prevent fraud, the BOJ is working closely with supervised institutions to upgrade their systems, including:
- Deploying advanced technological reporting and analytic tools globally accepted standards.
- Implementing stringent internal control measures to detect irregular transactions early on.
Recent Case of Alleged Fraud
In a recent case of alleged fraud at a commercial bank, the central bank’s stringent internal control measures enabled early detection of irregular transactions, minimizing the risk to the institution’s capitalization. The BOJ continues to monitor the financial sector closely, working with stakeholders to maintain public confidence in the system and ensure that clients’ funds are safe and secure.
Maintaining Public Confidence
The bank emphasizes that a strong and resilient financial system is built on client trust, knowing that their money is safe and accessible when needed. With ongoing efforts to strengthen internal controls and prevent fraud, the BOJ remains committed to maintaining public confidence in Jamaica’s financial system.