Financial Crime World

Central Bank Issues Guidelines for Effective Risk Management

Preventing Money Laundering and Terrorist Financing

The Central Bank of Jamaica has issued a comprehensive risk management framework to ensure the effective prevention of money laundering and terrorist financing. The guidelines were made available in November 2018.

Identifying Key Risks

According to the guidelines, the Central Bank identified several key risks that pose a threat to its operations:

  • Corrupt officers and employees
  • Undue influence from the private sector or politically exposed persons
  • Use of services to commit or facilitate money laundering or terrorist financing

Operating Risks

The Banking Department within the Central Bank also identified specific operating risks, including:

  • Inadequate awareness among staff of their AML/CFT/CFP responsibilities
  • Doing business with politically exposed persons without proper safeguards
  • Lack of information from government agencies or other customers

Mitigating Risks

To mitigate these risks, the Central Bank has implemented enhanced measures, including:

  • Requiring officers to undertake regular risk assessments
  • Providing training on AML/CFT/CFP laws and regulations
  • Increasing monitoring and reporting mechanisms to ensure that all transactions are properly vetted

“We take the prevention of money laundering and terrorist financing very seriously,” said a Central Bank spokesperson. “These guidelines demonstrate our commitment to ensuring that our operations are transparent, secure, and compliant with international standards.”

Risk Assessment Guide Highlights

The risk assessment guide highlights several key threats and vulnerabilities, including:

  • Cyber-related crimes
  • Economic and social environment factors
  • Weaknesses in national infrastructure and internal controls

“The rise of cybercrime and the fast-changing typologies in relation to money laundering and terrorist financing require us to be proactive in our approach,” said the spokesperson. “We will continue to monitor emerging trends and threats and adjust our risk management framework accordingly.”

Availability of Guidelines

The Central Bank has made the guidelines available to all officers and employees, as well as internal and external auditors, to ensure that everyone is aware of their responsibilities and obligations under the AML/CFT/CFP regime.

Risk Management Framework Highlights:

  • Identifies key risks posed by corrupt officers and employees, undue influence from the private sector or politically exposed persons, and use of services to commit or facilitate money laundering or terrorist financing
  • Requires regular risk assessments and training on AML/CFT/CFP laws and regulations
  • Enhances monitoring and reporting mechanisms to ensure proper vetting of transactions
  • Highlights key threats and vulnerabilities, including cyber-related crimes, economic and social environment factors, and weaknesses in national infrastructure and internal controls

Source: Central Bank of Jamaica