Financial Crime World

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Amendments to POCA Strengthen Oversight Powers

Date: June 14, 2018 Volume: 352, Issue J8 Section: 46, TPA (Taxation and Payments Act) POCA Sections: 97(2)(e), 100, and Regulation 3(4) of the POC (Money Laundering and Proceeds of Crime Regulations)

In a bid to combat money laundering and terrorism financing, amendments have been made to the Proceeds of Crime Act (POCA) in Jamaica. The changes aim to enhance the oversight powers of the competent authority, ensuring greater vigilance in the fight against financial crimes.

New Section 91A: Additional Functions of Competent Authority

A new section, 91A, has been inserted into POCA, outlining the additional functions of the competent authority. These include:

  • Requiring regulated businesses to comply with registration and reporting procedures
  • Conducting inspections or verification procedures
  • Issuing directions to prevent, detect, or reduce the risk of money laundering or terrorism financing
  • Examining and copying information or documents relating to a regulated business’s operations
  • Sharing information with regulatory counterparts, supervisory authorities, or designated authorities

Penalties for Non-Compliance

Non-compliance with the competent authority’s directives or requirements is an offence punishable by both criminal (fine up to JMD$250,000) and administrative penalties (revocation of operating license).

Pre-POCA Position: BOJ as Designated Competent Authority

Prior to the amendments, the Bank of Jamaica (BOJ) was designated as the competent authority for banks, merchant banks, building societies, credit unions, cambios, and remittance service providers.

Offences under Section V (Money Laundering)

Section 92 of POCA creates an offence where a person engages in a transaction involving criminal property, conceals, disguises, disposes of, or brings into Jamaica criminal property, converts or transfers or removes criminal property from Jamaica, knowing or having reasonable grounds to believe that the property is criminal property.

Financial Institutions Must Take Note

The successful prosecution of an offence under the AML regime requires proof of knowledge or wilful blindness on the part of the person charged. Financial institutions are advised to pay particular attention to this category of offence, as it can be committed without a traditional transaction taking place.

Conclusion

The amendments to POCA demonstrate Jamaica’s commitment to combating money laundering and terrorism financing. Financial institutions must remain vigilant in their efforts to prevent these financial crimes, ensuring the integrity of the Jamaican financial system.