Jamaica’s Financial Crime Problem: Used-Car Dealers, Real Estate Agents Among Those Facilitating Breaches of Cash Transaction Limit

The financial sector in Jamaica is facing a major crisis as used-car dealers, hardware merchants, and real estate agents are accused of facilitating breaches of the million-dollar limit for cash transactions. According to Selvin Hay, Chief Technical Director of the Financial Investigation Division (FID), these groups are hindering efforts to combat money laundering.

Facilitating Financial Crimes

Hay revealed that intelligence gaps are hindering efforts to combat money laundering, and urged financial sector representatives to step up their reporting of suspicious transactions. He also warned that property developers and lawyers, who are not included in Jamaica’s Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) legislative regime, may be participating in or facilitating financial crimes.

Absence of Property Developers and Lawyers from AML/CFT Legislative Regime

The country’s inclusion on the Financial Action Task Force (FATF) blacklist of non-compliant jurisdictions is partly attributed to the absence of these two groups from the AML/CFT legal framework. Hay called for greater cooperation between law enforcement and the private sector to tackle the issue, citing delays in addressing legislative weaknesses and legal loopholes.

Rise of Cybercrimes

Hay also expressed concerns about the rise of cybercrimes in Jamaica with the advent of Jam-Dex, the central bank digital currency (CBDC) issued by the Bank of Jamaica. He warned that the country’s increased risk profile may lead to stricter international scrutiny.

Need for Standardized Security and Compliance Practices

The FID Chief highlighted the need for financial institutions to standardize their security and compliance practices, as well as take a less adversarial approach to cooperating with institutions like the FID to combat financial crimes. He urged lawmakers to make laws designed to prevent and punish financial crimes more robust and resilient.

Defending Jam-Dex

A representative from the Bank of Jamaica (BOJ) defended Jam-Dex, stating that significant consideration was given to ensuring that it would not compromise the country’s AML/CFT regime. The BOJ is urging financial institutions to invest in advanced technology, including artificial intelligence and machine learning, to strengthen their digital platforms, data security, and processes.

Conclusion

The article highlights Jamaica’s ongoing struggle with financial crime, particularly money laundering and cybercrime. Emphasis is placed on the need for greater cooperation between law enforcement, the private sector, and lawmakers to address these issues.