Financial Fraud Statistics in Jamaica Revealed: $700 Million to $800 Million Lost Annually

Banking System Loses Between $700 Million and $800 Million Annually Due to Fraudulent Activities

According to Dr. Jide Lewis, deputy governor of the Bank of Jamaica (BOJ), the country loses between $700 million and $800 million annually due to fraudulent activities in its banking system. This revelation was made at a recent anti-money laundering seminar.

Decline in Fraud Estimate from Previous Study

The current fraud estimate reflects a decline from the previous annual average of $1 billion found during a study covering a 46-month period ending in 2021. The study also found that fraudulent activities averaged $10 million per month per institution.

Challenges in Combating Financial Fraud and Money Laundering

Despite this decline, Jamaica still faces significant challenges in combating financial fraud and money laundering. To get off the Financial Action Task Force (FATF) grey list, which it has been on since January 2020, the country needs to complete 13 action items aimed at improving its anti-money laundering defenses.

Urgent Need for Progress

Lewis emphasized that while Jamaica’s efforts are commendable, there is still much work to be done. “We have two to three months to demonstrate our progress,” he said, noting that the FATF will meet with Jamaican officials later this month and again in the summer to assess the country’s compliance with its action plan.

Study Findings on Banking Fraud

The BOJ’s study on banking fraud among eight deposit-taking institutions found that fraudulent activities originated from internal staff, internet banking, loans, wire transfers, and other means. The report noted that most incidents related to credit and debit card fraud, which accounted for an estimated $3.3 billion or four-fifths of the total fraud.

Importance of Continued Vigilance

The findings highlight the need for continued vigilance in combating financial crime and money laundering. Jamaica’s efforts are critical not only for its own economic stability but also for its global reputation as a financial hub.

Key Takeaways

• Jamaica loses between $700 million and $800 million annually due to fraudulent activities.
• The current fraud estimate reflects a decline from the previous annual average of $1 billion.
• Jamaica needs to complete 13 action items aimed at improving its anti-money laundering defenses to get off the FATF grey list.
• The country faces significant challenges in combating financial fraud and money laundering.