Financial Crime World

Jamaica’s Policy Framework Gets Boost from Line Ministries

The Jamaican government has taken significant steps to strengthen its policy framework, with key ministries playing a crucial role in the development and implementation of policies.

Enhancing Transparency and Accountability

Recent guidelines require line ministries to submit their policies to parliament for information purposes only. This move aims to enhance transparency and accountability within the government’s policy-making process.

Improving Fiscal Policy Framework

The government is working to improve its fiscal policy framework, with notable developments including:

  • The head of the independent Fiscal Commission (FC) has been sworn in.
  • A new Fiscal Research Institute has been established at the University of West Indies.
  • The expansion of fiscal accounts, strengthening cash management, and improving fiscal risk reporting.

Strengthening Financial System Oversight

The Central Bank of Jamaica (BOJ) is working to adopt climate budget tagging with support from the Inter-American Development Bank (IDB). Additionally:

  • An updated safeguards assessment has been completed, concluding that financial reporting practices and audit mechanisms are broadly guided by international standards.
  • The BOJ has licensed another Financial Holding Company (FHC).
  • Amendments to the Financial Services Act aim to place supervision of financial conglomerates without DTIs under the Financial Service Commission (FSC).

Roadmap for Unifying Financial Supervision

The government is defining a roadmap to unify its framework for financial supervision, with plans to organize it under a “twin peaks” regime. The FSC will continue to supervise the non-bank financial system, with its mandate strengthened by amendments to the FSC Act.

Strengthening AML/CFT Framework

Steps are being taken to strengthen the AML/CFT framework, including efforts to implement approved legislation. Notable developments include:

  • The judicial committee’s upholding of the application of AML/CFT legislation to attorneys-at-law.
  • Parliament’s approval of amendments to the Companies Act.

Conclusion

Overall, these developments demonstrate Jamaica’s commitment to strengthening its policy framework and enhancing transparency and accountability within government operations.