Jamaica Bankers Association Head Calls for Tougher Penalties on Financial Frauds

A Call for Change Amidst Growing Public Outrage

A top official from Jamaica’s banking sector has called for an overhaul of the country’s laws to impose harsher penalties on those convicted of financial fraud. The move comes amidst growing public outrage over a recent sentencing that saw a former NCB Capital Markets employee, Khadene Thomas, sentenced to just two years in prison after fleecing three customers of $74.5 million.

Wrong Message Sent

Dane Nicholson, head of the Jamaica Bankers Association’s Anti-Fraud Committee and also head of fraud prevention at NCB, said the current leniency in sentencing is sending the wrong message to potential fraudsters. “In my view, the sentencing sent a wrong message to onlookers and has served to color the public perception of the financial sector,” he noted.

Establishing a Specialized Financial Court

Nicholson believes that establishing a specialized financial court could help address the issue and restore public trust. “Given the prevalence of this matter and the rise in financial fraud over the past few years, perhaps it is prudent now that a financial court be established to treat with matters of this nature,” he said.

Stricter Sentencing for Financial Crimes

The head of fraud prevention also pushed for special legal provisions for individuals working in the financial sector who breach their fiduciary responsibilities. “If they are convicted for financial fraud, whether larceny as a servant or forged document, and even if you plead guilty and restitution is given to the financial entity, the minimum sentence that they should receive is 10 years because you are placed in a position of trust,” he emphasized.

Reviewing Plea Deals

Nicholson believes that cases like Thomas’s should be tried in the Supreme Court and called for a review of how plea deals are negotiated to ensure they do not disregard the severity of the crimes committed.

Importance of Internal Controls and Public Awareness Campaigns

In addition to his call for stricter penalties, Nicholson also highlighted the importance of internal controls and public awareness campaigns. Local banks have implemented various measures to minimize fraudulent activities, including background checks and “Know Your Employee” frameworks. However, he noted that the loophole often lies in employees manipulating customers and taking advantage of them.

Decline in Online Frauds

Year-on-year, Nicholson reported a decline in online frauds across local financial institutions. Nevertheless, the recent sentencing has sparked a renewed push for tougher penalties to deter future financial frauds in Jamaica.

Conclusion

The call for stricter penalties and a review of plea deals is timely given the growing public outrage over financial crimes in Jamaica. As the country grapples with an increase in financial crimes, it is crucial that the government takes steps to address this issue and restore public trust in the financial sector.