Financial Crime World

Jamaica’s Insurance Companies Must Get to Know Their Customers: KYC Regulations in Force

As part of Jamaica’s efforts to combat money laundering and terrorism, the country has implemented laws aimed at preventing financial institutions from being used by criminals. The Proceeds of Crime Act requires insurance companies like JN General Insurance (JNGI) to implement systems that ensure proper customer identification.

The Financial Services Commission, JNGI’s regulator, has also issued Anti-Money Laundering guidelines for all insurance companies, which includes the requirement to “know their customers.” This means verifying the identity of customers and staying informed about their business activities.

Know Your Customer (KYC): The Process Behind It

Know Your Customer (KYC) is a process used by financial institutions like JNGI to verify the identity of its customers. The objective is to prevent institutions from being used for money laundering activities, identity theft, and financial fraud. Internationally, KYC is regarded as crucial in preventing these crimes.

Purpose of KYC

The purpose of the KYC exercise is twofold:

  • To ensure that customers are properly identified
  • To enable JNGI to anticipate its customers’ business needs and tailor products and services to meet those needs while fulfilling regulatory obligations

Requirements for KYC Compliance

To be KYC compliant, companies must request and obtain specific information from customers at the start of a new business relationship. These include:

  • Documents required from individuals:
    • Current photo ID (Driver’s Licence, Passport, Voter’s ID)
    • TRN
    • Employment information
  • Documents required from companies:
    • Certificate of Incorporation
    • TRN

Ongoing Assessment and Updates

The assessment of customer information is an ongoing process. If JNGI recognizes that previously obtained information is incomplete, it will contact the customer to request additional information.

As customers’ circumstances change over time, it is essential to ensure that information on existing customers is regularly updated to maintain accurate records.

Commitment to Compliance and Customer Education

JNGI is committed to compliance with KYC regulations and encourages its customers to understand their role in this process. By working together, we can ensure a safe and secure environment for all stakeholders involved in the insurance industry.