Bank of Jamaica Successfully Implements KYC Mandate to Combat Money Laundering and Financing of Terrorism
Kingston, Jamaica - The Bank of Jamaica (BOJ) has announced that it has successfully implemented its Know-Your-Customer (KYC) mandate, aimed at combating money laundering and the financing of terrorism in the country.
Background
As part of its efforts to comply with international standards, the BOJ has issued guidance notes for financial institutions regulated by the central bank, including:
- Commercial banks
- Merchant banks
- Building societies
- Credit unions
- Changos/bureaux de change
- Money transfer and remittance agents
KYC Mandate Requirements
The KYC mandate requires financial institutions to verify the identity of their customers and maintain accurate records of transactions. The BOJ has emphasized that this measure is crucial in preventing the misuse of financial systems for illegal activities.
Benefits and Consequences
“We are committed to ensuring that our financial system is secure and compliant with international standards,” said a spokesperson for the BOJ. “The KYC mandate is an essential step towards achieving this goal, and we are pleased to have successfully implemented it.”
The consequences of non-compliance with the KYC obligations could result in severe penalties, including:
- Fines
- Imprisonment
FAQs Clarified
The BOJ has also clarified several frequently asked questions related to the KYC mandate, including:
- Whether the information provided will be used for taxation purposes (no)
- What the consequences would be if a person refuses to provide required information (a financial institution may refuse to do business with that person)
Strengthening Jamaica’s AML/CFT Framework
The implementation of the KYC mandate is seen as a major step towards strengthening Jamaica’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The country’s compliance with international standards is crucial to maintaining correspondent accounts overseas and participating in the global financial system.
“We hope that these questions and answers have provided a better understanding of why customers are required to provide more information prior to conducting transactions with cambios and other financial institutions,” said the BOJ spokesperson. “We believe that this measure will help to ensure the integrity of our financial system and prevent illegal activities.”
Accessing FAQs
The full text of the frequently asked questions and answers can be accessed on the Bank of Jamaica’s website at www.boj.org.jm.