Jamaica’s Risk-Based Approach to Anti-Money Laundering and Counter-Terrorist Financing Under Scrutiny Amid Ongoing EU Monitoring

Background

In June 2024, the Financial Action Task Force (FATF) removed Jamaica from its Grey list, following its listing in 2020. Despite this development, Jamaica remains on the European Commission’s list of high-risk third countries with regards to anti-money laundering and counter-terrorist financing (AML/CFT).

Commitment to Improvement

Jamaican authorities have committed to working closely with the FATF and the Caribbean Financial Action Task Force (CFATF) to bolster its AML/CFT regime. To address concerns, Jamaica has taken concrete steps towards improving its framework, including aligning its definition of beneficial ownership with international standards.

Strategic Deficiencies

The FATF previously urged Jamaica to address several strategic deficiencies, particularly:

• Ensuring adequate risk-based supervision across all designated non-financial businesses and professions (DNFBPs) sectors
• Demonstrating the availability of accurate and up-to-date basic and beneficial ownership information to competent authorities in a timely manner
• Applying effective, proportionate, and dissuasive sanctions

EU Assistance

In response to these concerns, the EU Global Facility conducted a scoping mission to Jamaica in March 2022 to assess the country’s current AML/CFT regime and identify potential areas for technical assistance. The facility has since delivered various training programs and activities aimed at helping Jamaican authorities:

• Rectify strategic deficiencies in their national framework
• Enhance capacities in AML/CFT

By addressing these concerns, Jamaica is taking concrete steps towards improving its risk-based approach to anti-money laundering and counter-terrorist financing, ultimately enhancing the country’s financial integrity and reducing the risk of money laundering and terrorist financing.