Jamaica Takes Steps to Prevent Financial Crime, Issues Standards of Best Practice

The Bank of Jamaica has taken a significant step towards preventing financial crime in the country by issuing standards of best practice for deposit-taking institutions. The move is aimed at promoting principles of sound corporate governance and reducing the risk of financial crimes such as money laundering and terrorism financing.

Standards of Best Practice

The standards provide clear guidance on supervisory expectations of boards and management in implementing appropriate systems to assess, measure, monitor, and mitigate risks in identified operational areas. The standards cover a range of critical areas including:

• Fitness and Propriety: Ensuring that institutions operate with integrity and comply with regulatory requirements.
• Cyber Resilience: Protecting against cyber-attacks and maintaining the confidentiality, integrity, and availability of information systems.
• Corporate Governance: Promoting sound governance practices to ensure effective decision-making and risk management.
• Capital Conservation Buffer: Maintaining adequate capital buffers to absorb potential losses.

Revised Guidelines on Money Laundering and Terrorism Financing

The Bank has also issued revised guidelines on the prevention of money laundering and combating the financing of terrorism, which align with international standards and legislation. These guidelines provide a framework for deposit-taking institutions to identify, assess, and mitigate risks associated with these financial crimes.

Prudential Reporting Requirements

In addition, the Bank has developed prudential reporting requirements for deposit-taking institutions, including specific schedules and returns that must be submitted electronically. The reports are used by the Bank to monitor the financial health of institutions and detect any potential risks or irregularities.

Benefits of the Move

The move is seen as a major step towards strengthening Jamaica’s financial system and preventing financial crimes. It is expected to benefit both deposit-taking institutions and customers, who will have greater confidence in the integrity of the banking system.

“We are committed to promoting sound corporate governance practices and reducing the risk of financial crime,” said a spokesperson for the Bank of Jamaica. “These standards and guidelines will help us achieve this goal and maintain the stability and integrity of our financial system.”

Accessing the Standards and Guidelines

The standards and guidelines are available on the Bank’s website and can be accessed by deposit-taking institutions, customers, and other stakeholders.

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