Financial Crime World

Jamaica Embarks on Risk-Based Approach to AML/CFT

Jamaica is taking a significant step forward in strengthening its anti-money laundering (AML) and countering the financing of terrorism (CFT) regime by adopting a risk-based approach to tackle money laundering and terrorist financing threats.

International Recommendations

As per international recommendations, countries are required to identify, assess, and understand the risks posed by these illegal activities in order to develop effective measures to mitigate them. This approach enables countries to allocate resources efficiently and prioritize efforts on areas posing the greatest threat.

Key Features of the Risk-Based Approach

  • Designating an authority or mechanism to coordinate actions aimed at assessing Jamaica’s AML/CFT risks and allocating resources accordingly
  • Ensuring that anti-money laundering and counter-terrorism financing measures are proportionate to the level of risk identified
  • Enabling efficient resource allocation across the AML/CFT regime, allowing Jamaica to prioritize efforts on areas posing the greatest threat

Effective Risk Management

Under this approach, financial institutions and designated non-financial businesses and professions (DNFBPs) in Jamaica will be required to:

  • Identify their own money laundering and terrorist financing risks
  • Assess these risks and take effective action to mitigate them
  • Implement measures that are proportionate to the level of risk identified

This move is expected to enhance the overall effectiveness of Jamaica’s AML/CFT efforts and reduce the risk of illegal activities compromising its financial system.

Strengthening the Financial Sector and International Cooperation

The adoption of a risk-based approach to AML/CFT in Jamaica marks an important step towards strengthening the country’s financial sector and enhancing international cooperation in combating money laundering and terrorist financing. This strategic move will help Jamaica to:

  • Enhance its reputation as a responsible financial actor
  • Improve its ability to combat money laundering and terrorist financing
  • Strengthen its relationships with other countries and international organizations

By adopting a risk-based approach, Jamaica is demonstrating its commitment to preventing the misuse of its financial system and ensuring that it remains a safe and secure place for businesses and individuals to operate.