Jamaica Completes National Risk Assessment to Combat Financial Crime

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Jamaica has recently completed its National Risk Assessment (NRA), a crucial exercise aimed at identifying vulnerabilities and threats to the country’s Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regime. The NRA report is the culmination of a three-year multi-agency effort that covered 11 financial and designated non-financial businesses and professions sectors in Jamaica.

Background

The assessment, which covers the period January 2016 to December 2019, has identified the money laundering threats, vulnerabilities, and risks that Jamaica faces. A wide range of stakeholders were involved in the process, including competent authorities, law enforcement agencies, and the designated authority. Feedback was also received from the public sector through stakeholder consultation sessions and surveys administered to several sectors.

Key Findings

The NRA report highlights certain sectors as having higher money laundering/terrorism financing risk, which financial institutions should consider when assessing the level of risk posed by customers from these sectors. Stakeholders are also urged to take into account the results of the NRA when assessing their risk factors in relation to products and services offered, transactions undertaken, delivery channels, and susceptibility to typologies identified in the report.

Implementation

The NRA is a live document that will be frequently updated to ensure that Jamaica’s money laundering/terrorism financing risks remain understood and that measures implemented to combat these risks remain relevant. The country’s efforts to understand its AML/CFT/PF risks and circumstances arise from the Financial Action Task Force’s (FATF) 40 Recommendations on International Standards on Combating Money Launderling and the Financing of Terrorism and Proliferation, which sets standards for effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and proliferation financing.

Conclusion

The completion of Jamaica’s National Risk Assessment marks a significant step in the country’s efforts to combat financial crime. The report will serve as a valuable tool for stakeholders to identify and mitigate risks associated with money laundering and terrorism financing.