Central Bank Unveils Corporate Risk Management Framework to Combat Money Laundering and Terror Financing
Strengthening AML/CFT Framework in Jamaica
November 2018 - The Central Bank of Jamaica has introduced a comprehensive Corporate Risk Management Framework to enhance its anti-money laundering and combating the financing of terrorism (AML/CFT) framework.
Objectives of the Framework
The framework aims to identify, assess, and mitigate potential risks associated with money laundering and terrorist financing. It is designed to ensure that the Central Bank’s operations are carried out in a manner that minimizes the risk of being used for illicit activities.
Key AML/CFT Risks Identified
Under the framework, the Central Bank has identified key AML/CFT risks, including:
- Corrupt officers and employees
- Undue influence from the private sector or politically exposed persons
- Use of its services to commit or facilitate money laundering or terrorist financing
Operating Risks Facing the Banking Department
The framework also highlights specific operating risks facing the Banking Department within the Central Bank, such as:
- Lack of awareness among staff regarding their AML/CFT responsibilities
- Doing business with politically exposed persons without proper safeguards
- Absence of information from government agencies or customers
Implementation of the Framework
To address these risks, the framework requires the Central Bank to:
- Conduct regular risk assessments
- Identify potential threats and vulnerabilities
- Implement effective measures to prevent money laundering and terrorist financing
- Stay up-to-date with changing trends and typologies in AML/CFT methods and tactics
Availability of the Framework
The Central Bank has made the framework available to its officers and employees, as well as internal and external auditors, to ensure that everyone is aware of their roles and responsibilities in preventing money laundering and terrorist financing.
Commitment to Compliance
“This framework is a critical step towards ensuring that our operations are transparent, secure, and compliant with international standards,” said a Central Bank official. “We are committed to protecting the integrity of our financial system and preventing the misuse of our services for illicit activities.”
Importance of the Framework
The framework is seen as an important tool in Jamaica’s efforts to combat money laundering and terrorist financing, and it will be closely monitored by regulatory bodies and international organizations to ensure its effectiveness.