Financial Crime World

Here is the converted article in Markdown format:

Jamaica’s Financial Sector Enhances Exercise Efforts in Fight Against Money Laundering

Kingston, Jamaica - The Bank of Jamaica’s Financial Institution Supervision Division (FISD) has continued to strengthen its communication efforts with the financial industry regarding developments in its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulatory framework.

Strengthening Communication Efforts

In a bid to ensure that deposit-taking institutions (DTIs) are owned, managed and operated by fit and proper persons, FISD approved 38 non-objection recommendations for DTIs in 2020. This represents a record number of approvals in any given year.

Assessments and Reviews

The division also conducted various reviews and assessments, including:

  • Six assessments for the Credit Reporting Oversight function
  • 24 summary assessments for Agent Banking candidates
  • Thematic studies on wire transfers to identify potential money laundering risks

COVID-19 Relief Measures

In response to the COVID-19 pandemic, FISD implemented several measures to provide temporary relief to DTIs and financial holding companies (FHCs) in preparing their prudential returns. These measures include:

  • Guidance on the treatment of payment accommodations
  • Audited financial statements
  • Provisioning for expected credit losses

Thematic Assessment of Wire Transfers

The Bank also conducted a thematic assessment of wire transfers, which identified potential sources of money laundering risks in the Jamaican financial system. The study used network analyses to develop strategies to mitigate these risks, and its findings were shared with stakeholders in December 2020.

Commitment to AML/CFT Framework

“We remain committed to ensuring that Jamaica’s financial sector is robust and resilient in the face of emerging challenges,” said a Bank of Jamaica spokesperson. “Our exercise efforts are designed to strengthen the AML/CFT framework and protect the integrity of our financial system.”

Future Plans

The Bank’s Financial Institution Supervision Division will continue to work closely with the financial industry to implement these measures and ensure that DTIs and FHCs are equipped to operate effectively in a rapidly changing environment.

Abbreviations

  • AML - Anti-money Laundering
  • ARR - Administrative Resolution Regime
  • BOJA - Bank of Jamaica Act
  • BSA - Banking Services Act
  • CDD - Customer Due Diligence
  • CFT - Combating the Financing of Terrorism
  • D-SIFI - Domestic Systemically Important Financial Institutions
  • DTI - Deposit-taking institution (commercial banks, merchant banks and building societies)
  • FHC - Financial Holding Company
  • FI - Financial Institution (including DTIs, securities dealers, and insurance companies)
  • FISD - Financial Institution Supervision Division
  • FPRC - Fit and Proper Review Committee
  • FSC - Financial Services Commission
  • GOJ - Government of Jamaica
  • ICAAP - Internal Capital Adequacy Assessment Process
  • KYC - Know-Your-Customer
  • ML - Money Laundering
  • NSFR - Net Stable Funding Ratio
  • PWMD - Proliferation of Weapons of Mass Destruction
  • QIS - Quantitative Impact Study
  • SIF - Specialized Insolvency Framework
  • SLA - Service Level Agreement
  • SREP - Supervisory Review and Evaluation Process
  • SRR - Special Resolution Regime
  • TA - Technical Assistance