Financial Crime World

Jamaica Financial Services Commission and Jamaica Deposit Insurance Corporation: Enhancing Financial Regulations

Kingston, Jamaica - The Jamaica Financial Services Commission (FSC) and the Jamaica Deposit Insurance Corporation (JDIC) are working together to develop subsidiary legislation aimed at strengthening financial regulations and promoting a safe and stable financial system.

AML/CFT Supervisory Rules

The FSC is currently developing draft instructions for AML/ CFT supervisory rules under the Banking Services Act, 2014 and the Bank of Jamaica Act. The proposed rules will:

  • Codify risk-based examinations and oversight processes related to AML/CFT oversight functions of the Bank of Jamaica
  • Outline areas in the Bank of Jamaica’s AML/CFT Guidance Notes that compliance with which will be expressly mandated

The proposed rules will cover key areas such as:

  • Risk-based framework
  • Know-your-customer
  • Customer due diligence
  • Record keeping

A third draft of the AML/CFT Rules has been issued for feedback.

National Identification Registration Act

The National Identification Registration Act, 2021 aims to provide a system of national identification and administration of civil registration in conformity with all laws applicable to civil registration. The act establishes the National Identification Registration Authority, which will be responsible for:

  • Developing policies, procedures, and protocols for the creation, management, and operation of the National Identification System
  • Ensuring the protection of identity information and personal data

Data Protection Act

The Data Protection Act, 2020 aims to protect Jamaicans from unlawful or reckless disclosure of their personal information. The act sets standards for data processing to ensure that:

  • Personal data is processed fairly and lawfully
  • Personal data is only processed where necessary
  • Exemptions are provided for regulators to undertake statutory regulatory functions

The Minister of National Security can issue a certificate of exemption from any of the standards or disclosure requirements in order to safeguard national security. The act is being implemented on a phased basis, with responsibility for implementation and administration falling under the Ministry responsible for information and communications technology through the Office of the Information Commissioner.

FATF Recommendations

The Financial Action Task Force (FATF) is an intergovernmental body established in 1989 to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. The FSC and JDIC are working closely with the FATF to implement its recommendations and ensure compliance with international standards in the fight against:

  • Money laundering
  • Terrorist financing
  • Other financial crimes

The FSC and JDIC are committed to implementing these recommendations to promote a safe and stable financial system in Jamaica.