Financial Crime World

Jamaica’s Efforts to Combat Money Laundering and Terrorist Financing Receive Mixed Review in Follow-Up Report

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A recent report by the Financial Action Task Force (FATF) has evaluated Jamaica’s implementation of anti-money laundering policies, revealing a mixed bag of compliance with international standards. The country received ratings ranging from “largely compliant” to “partially compliant” across various requirements.

Areas of Progress

The FATF Recommendations, which guide countries in their efforts to combat money laundering and terrorist financing, were assessed in the Jamaica Follow-Up Report 2022. The report highlighted several areas where Jamaica has made progress:

  • Assessing risk and applying a risk-based approach (R.1)
  • National cooperation and coordination (R.2)
  • Regulation and supervision of financial institutions (R.26)

Shortcomings

However, the country was found to be partially compliant in several key areas, including:

  • Laws regarding confiscation and provisional measures (R.4) and targeted financial sanctions related to terrorism and terrorist financing (R.6), deemed insufficient.
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs), including customer due diligence (R.22) and other measures (R.23).

Furthermore, Jamaica was found to be non-compliant or required improvement in the following areas:

  • Financial institution secrecy laws (R.9)
  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Reporting of suspicious transactions (R.20)
  • Powers of law enforcement and investigative authorities (R.31) and extradition procedures (R.39)

Action Plan

The FATF report provides Jamaica with an action plan to address these shortcomings and bring its anti-money laundering and combating the financing of terrorism (AML/CFT) regime in line with international standards. The country’s financial sector regulator, the Financial Services Commission, will work closely with stakeholders to implement the necessary reforms and improve its overall compliance.

Government Response

The Jamaican government has acknowledged the report’s findings and is committed to addressing the identified deficiencies. In a statement, the Ministry of Finance and the Public Service noted that the country is “determined to strengthen its AML/CFT framework and ensure that it meets international standards.” The ministry emphasized the importance of effective anti-money laundering measures in preventing financial crimes and protecting the integrity of Jamaica’s financial system.

Conclusion

While Jamaica has made progress in some areas, there are significant challenges ahead in terms of implementing the necessary reforms to improve its compliance with FATF Recommendations. The country will need to demonstrate concrete progress in addressing the identified deficiencies if it is to maintain its position as a member of the international community and avoid potential sanctions.