Financial Crime World

Jamaica’s Risk-Based CFT Regime Needs Improvement, Says Global Watchdog

Kingston, Jamaica - The efforts of Jamaica to combat terrorist financing and money laundering have been deemed insufficient by international authorities. While the country has made significant strides in reforming its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime since its last evaluation in 2005, gaps remain.

Assessment Highlights Gaps in CFT Regime

  • Jamaica’s CFT regime is still in its early stages of development and requires major improvements to bring it in line with international standards.
  • The country has limited experience in investigating and prosecuting terrorist financing cases, with no convictions secured so far.

Strengthening Targeted Financial Sanctions

  • Jamaica needs to strengthen its targeted financial sanctions (TFS) for terrorism and proliferation financing.
  • There have been delays in implementing TFS, including communicating all United Nations designations to financial institutions.

Enhancing Investigative Capabilities

  • Jamaica has established a dedicated unit to investigate terrorist financing and organized crime, but its effectiveness is limited due to lack of experience and specialized training.
  • The country’s AML/CFT regime lacks a risk-based approach, which could lead to more effective targeting of high-risk activities.

Progress Made in Other Areas

  • Jamaica has made progress in strengthening law enforcement and national cooperation mechanisms.
  • However, significant improvements are needed in transparency, beneficial ownership disclosure, and sanctions for non-compliance.

Financial Institutions’ Compliance Efforts

  • Financial institutions in Jamaica understand the risks associated with AML/CFT and have implemented group compliance programs approved by their boards of directors.
  • However, more needs to be done to address the country’s weaknesses and bring its CFT regime up to international standards.

Global Watchdog’s Assessment

The assessment was conducted by a global watchdog organization that monitors countries’ efforts to combat money laundering and terrorist financing. The organization’s findings are intended to help Jamaica strengthen its AML/CFT regime and improve its effectiveness in combating these threats.