Financial Crimes Statistics in Jamaica on the Rise: FID Chief Warns of Increased Vulnerability to Cybercrimes
The Financial Investigation Division (FID) in Jamaica has sounded a warning about the rise of financial crimes, particularly cybercrimes, in the country. According to FID’s Chief Technical Director Selvin Hay, certain sectors are facilitating breaches of the million-dollar limit for cash transactions and potentially participating in or enabling other financial crimes.
Sectors at Risk
Hay identified several sectors that are vulnerable to financial crimes, including:
- Used-car dealers
- Hardware merchants
- Real estate agents and developers
These sectors have been found to be facilitating breaches of the million-dollar limit for cash transactions, which is a major concern in terms of money laundering.
Cybercrimes on the Rise
Hay also highlighted the increasing risk of cybercrimes in Jamaica. With the introduction of Jam-DeX, the central bank digital currency, lawbreakers have been able to use mobile phones or laptops to reduce their risk profile and commit fraud against financial institutions.
FID’s Warning
The FID chief emphasized that technology has enabled lawbreakers to commit fraud more easily, and that credit card fraud is rampant in Jamaica. He also warned that staff from outsourcing firms, banks, and telecommunications companies, as well as some account holders, are part of cyberfraud networks.
Recommendations
To combat these crimes, Hay recommended that financial institutions:
- Standardize their security and compliance practices
- Cooperate more effectively with law enforcement agencies
He also emphasized the need for increased vigilance and cooperation among financial sector representatives to combat money laundering.
Response from Bank of Jamaica
A representative from the Bank of Jamaica defended Jam-DeX, stating that significant consideration was given to ensuring the digital wallet would not compromise the country’s AML/CFT regime. The central bank is urging financial institutions to invest in advanced technology to strengthen their digital platforms and data security.
National Identification System (NIDS)
The NIDS is expected to improve authentication and reduce identity theft, while assisting “know your customer” procedures and onboarding new customers. The Bank of Jamaica is considering relaxing requirements for new account holders to provide references when NIDS comes into effect.
Overall, the FID’s warning highlights the need for increased vigilance and cooperation among financial sector representatives in Jamaica to combat financial crimes, particularly cybercrimes.