Jamaica’s Banking Fraud Cases Reach $700-800 Million Annually
A senior official at the Bank of Jamaica (BOJ) has revealed that fraud cases in the country’s banking system have reached an estimated $700 million to $800 million per annum. This disclosure was made by Dr. Jide Lewis, Deputy Governor of the BOJ, during a seminar on anti-money laundering and combating the financing of terrorism.
Fraud Losses Decline but Remain Significant Concern
While the value of fraudulent activity has declined compared to previous estimates, it is still a significant concern for Jamaica’s financial system. According to Dr. Lewis, fraud losses averaged $1 billion per annum over a 46-month period ending in 2021, representing approximately 0.95 percent of Jamaica’s total output.
Most Incidents Relate to Credit and Debit Card Fraud
The study by the BOJ found that most incidents of fraud relate to credit and debit card fraud, with an estimated loss of $3.3 billion or four-fifths of the total fraud.
Improvement Needed to Combat Money Laundering and Terrorist Financing
Dr. Lewis emphasized that while Jamaica is not doing badly relative to other jurisdictions, it still requires improvement in its efforts to combat money laundering and terrorist financing.
Country’s Efforts to Get Off FATF Grey List Ongoing
The country’s efforts to get off the Financial Action Task Force (FATF) grey list are ongoing, with 13 action items remaining to be completed by summer. The FATF has committed over 200 jurisdictions to strive towards ridding the world of havens for money laundering and funding of terrorism.
Meeting with FATF Later this Month
Dr. Lewis noted that the BOJ will meet with the FATF later this month to discuss progress on the outstanding action items. He emphasized that Jamaica must demonstrate significant progress in addressing these issues by summer, when its fate as a jurisdiction will be decided.
UK Privy Council Ruling Implications for Jamaica
The official also made reference to a recent UK Privy Council ruling, which has implications for Jamaica’s efforts to combat money laundering. The ruling states that lawyers in Jamaica are required to report suspicious transactions under the Proceeds of Crime Act, and failure to do so will result in sanctions.
Challenges Ahead but Aim is to Get Off FATF Grey List by Summer
Jamaica is expected to complete its action plan by summer, with the aim of getting off the FATF grey list. However, Dr. Lewis emphasized that there are still several issues to be addressed, including ensuring that all stakeholders support the country’s efforts to combat money laundering and terrorist financing.
Key Takeaways
- Fraud cases in Jamaica’s banking system reach an estimated $700-800 million per annum
- Credit and debit card fraud accounts for most incidents of fraud, with a loss of $3.3 billion
- Improvement is needed to combat money laundering and terrorist financing
- Efforts are ongoing to get off the FATF grey list, with 13 action items remaining to be completed by summer
- Meeting with FATF later this month to discuss progress on outstanding action items