Financial Crime World

Jamaica Faces Financial Crime Risk Assessment Concerns, Says FATF Report

Kingston, Jamaica - A recent report by the Financial Action Task Force (FATF) has highlighted several areas of concern in Jamaica’s efforts to combat financial crime.

The Follow-Up Report 2022 assesses the country’s progress in implementing the technical requirements of the FATF Recommendations. While Jamaica has made significant progress in some areas, the report identifies several shortcomings that need to be addressed.

Areas of Compliance

  • Customer due diligence (R.10): Jamaica is largely compliant with this requirement.
  • Record keeping (R.11) and reliance on third parties (R.17): The country has also made significant progress in implementing these requirements.
  • Risk-based approach (R.1): Jamaica has assessed and mitigated risks associated with money laundering and terrorist financing.

Areas of Concern

  • Prevention of misuse of financial institutions secrecy laws (R.9): Jamaica lacks effective measures to prevent the misuse of financial institutions secrecy laws.
  • Reporting of suspicious transactions (R.20): The country needs to improve its reporting of suspicious transactions.
  • Powers of supervisors (R.27): Jamaica’s powers of supervisors need to be improved.
  • Transparency and beneficial ownership information for legal persons (R.24): The country needs to provide greater transparency and beneficial ownership information for legal persons.

Additionally, Jamaica has been criticized for:

  • Limited implementation of targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • Lack of progress in implementing measures to prevent the proliferation of weapons of mass destruction (R.7).
  • Regulation and supervision of non-profit organizations (R.8) and DNFBPs (R.22-23): Jamaica’s regulation and supervision of these entities have been deemed partially compliant.

Conclusion

The report concludes that Jamaica has made some progress in addressing financial crime risks, but more needs to be done to fully implement the FATF Recommendations. The Jamaican government must take immediate action to address the identified shortcomings and ensure that its financial system is adequately protected from money laundering and terrorist financing threats.

Access the Full Report

The full Follow-Up Report 2022 can be accessed on the FATF website.