Financial Crime World

JAMAICA FACES TOUGH TEST IN COMBATING FINANCING OF TERRORISM

The Jamaican government’s efforts to combat the financing of terrorism have been put under scrutiny, with a recent report highlighting both progress and areas for improvement.

Compliance with FATF Recommendations

According to the Jamaica Follow-Up Report 2022, Jamaica has made varying levels of progress in complying with the Financial Action Task Force (FATF) recommendations. The report found that Jamaica was:

  • Compliant in a few areas, including:
    • Regulation and supervision of financial institutions
    • Powers of supervisors
    • Reporting of suspicious transactions
  • Partially compliant in several areas, including:
    • Assessing risk and applying a risk-based approach
    • National cooperation and coordination
    • Confiscation and provisional measures
    • Targeted financial sanctions related to terrorism and terrorist financing
    • Money or value transfer services
  • Non-compliant in some areas, including:
    • Implementation of financial institution secrecy laws
    • Customer due diligence
    • Record keeping
    • Internal controls and foreign branches and subsidiaries
    • Relying on third parties
    • Transparency and beneficial ownership of legal persons and arrangements
    • Statistics

Areas for Improvement

The report identified several areas where Jamaica needs to improve, including:

  • Implementing stronger anti-money laundering regulations
  • Increasing cooperation with international partners
  • Enhancing financial intelligence capabilities

Consequences of Inaction

Jamaica’s failure to effectively combat the financing of terrorism is a serious concern, as it can have significant implications for national security and stability. The government has been urged to take concrete steps to address these deficiencies and bring its laws and regulations in line with global standards.

In conclusion, while Jamaica has made some progress in combating the financing of terrorism, there are still areas where improvement is needed. It is essential that the government takes immediate action to address these shortcomings and ensure the country’s compliance with international standards.