Financial Crime World

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Jamaica Completes National Risk Assessment, Identifies Vulnerabilities in Anti-Money Laundering and Counter Financing of Terrorism Regime

Jamaica has recently completed its National Risk Assessment (NRA), a comprehensive report that identifies vulnerabilities and threats to the country’s anti-money laundering (AML) and counter financing of terrorism (CFT) regime. This move aims to strengthen Jamaica’s AML/CFT regime, providing valuable insights for policymakers and financial institutions to address areas of risk that require attention.

Background

The NRA is a requirement under the Financial Action Task Force’s (FATF) 40 Recommendations on International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation. The assessment is an established mechanism used by most countries to demonstrate their understanding of their risk and circumstances.

Methodology

The three-year multi-agency exercise covered 11 financial and designated non-financial businesses and professions sectors in Jamaica, with a focus period spanning from January 2016 to December 2019. Stakeholder groups including competent authorities, law enforcement agencies, and the designated authority were involved in the assessment process, which also included public sector consultations and surveys.

Key Findings

The NRA report highlights the money laundering threats, vulnerabilities, and risks faced by Jamaica, providing guidance for financial institutions to assess the level of AML/CFT risk posed by customers from identified high-risk sectors. Stakeholders are advised to consider the results of the NRA when evaluating their own AML/CFT risk factors in relation to:

  • Products and services offered
  • Transactions undertaken
  • Delivery channels
  • Susceptibility to typologies

Implementation

The NRA is a live document that will be regularly updated to ensure that Jamaica’s understanding of money laundering/terrorism financing risks remains current and relevant. The assessment provides a critical tool for policymakers and financial institutions to implement effective measures to combat these risks and maintain the integrity of Jamaica’s financial system.

By implementing the recommendations outlined in the NRA report, Jamaica aims to strengthen its AML/CFT regime and reduce the risk of money laundering and terrorism financing activities.