Jamaica Scores Major Win in Financial Sanctions Compliance, Avoids Blacklisting

Jamaica has made significant progress in bringing its anti-money laundering regime up to international standards, with the country now compliant or largely compliant with 37 out of 40 major recommendations made by the global financial watchdog, the Financial Action Task Force (FATF).

Compliance Progress

The impressive achievement was announced during last week’s meeting of the Caribbean Action Task Force (CFATF) in Aruba, where Jamaica’s Minister of Finance, Dr. Nigel Clarke, was elected deputy chairman.

“This is a result of productive collaboration across relevant ministries and agencies of government, through the National Anti-Money Laundering Committee, and represents considerable progress,” said Clarke, who led Jamaica’s delegation to the meeting.

Jamaica has made significant strides in improving its compliance with FATF recommendations since 2016, when it was only compliant with 17 out of 40 key measures. The global watchdog is responsible for monitoring and setting standards for anti-money laundering and combating terrorist financing across more than 200 countries.

Regional Progress

The country’s progress was noted during a meeting of the CFATF, a regional group of 24 countries that aims to implement and comply with FATF recommendations. Jamaica has been on the grey list or “jurisdictions under increased monitoring” since at least February 2020, meaning it has committed to resolving identified strategic deficiencies within agreed time frames.

Consequences of Non-Compliance

However, continued non-compliance could result in Jamaica being blacklisted as a “high-risk jurisdiction”, exposing it to economic sanctions. The FATF has urged the country to demonstrate significant progress in completing its action plan by February 2024 or face potential consequences, including:

• Enhanced due diligence measures for business relations and transactions with Jamaican entities
• Increased scrutiny of financial transactions

Optimism and Next Steps

Despite this warning, Clarke remains optimistic that Jamaica will avoid blacklisting, citing successful completion of all legislative requirements. The focus now is on operationalizing the measures to ensure full compliance with FATF standards.

Conclusion

Jamaica’s progress in financial sanctions compliance is a significant win for the country, demonstrating its commitment to implementing international anti-money laundering and combating terrorist financing standards. With continued efforts, Jamaica can avoid blacklisting and maintain its economic stability.