(CMR) Deputy Governor of the Bank of Jamaica, Dr. Jide Lewis, has warned that Jamaica is at risk of being fiscally blacklisted for not complying with recommendations made by the Financial Action Task Force, FATF. Jamaica is now on the Grey list.
Dr. Lewis said Jamaica’s global financial grey list status, a consequence of money laundering, has impacted foreign direct investment, Nationwide News Network reported.
In FATF's latest assessment in December 2022, Jamaica was found to have a number of deficiencies. The technical deficiencies included the incompletion of the national risk assessment (NRA), lack of involvement by the private sector in the conduct of the NRA, and no requirement for ensuring that the risk assessment is up-to-date.
Another deficiency identified is that Jamaica has no mechanism in place to provide information on the risk assessment(s) to relevant competent authorities, Financial Institutions, Designated Non-Financial Businesses and Professions, and self-regulating bodies.
Other deficiencies are that Jamaica also has no requirement to allocate resources based on the understanding of risk, and Terrorist Prevention Act (TPA) Regulations do not apply to DNFBPs.
According to a Nationwide News Network, FATF has strongly urged Jamaica to swiftly demonstrate significant progress in completing its action plan by the February 2023 deadline, or it will take action. This means Jamaica will remain on FATF’s Grey List or be placed on the Black list.
Speaking Thursday at the annual Anti-Money Laundering And Counter-Terrorism Forum in Jamaica, Deputy Governor of the Bank of Jamaica, Dr. Jide Lewis, said local institutions must comply with the recommendations.
He’s hailed the recent Privy Council ruling saying it will help in areas of compliance.
The Judicial Committee of the Privy Council has overruled the Court of Appeal and upheld Jamaica’s anti-money laundering reporting regime as it relates to attorneys.
The ruling means attorneys must file a report if they believe their clients used illicit funds as part of their transactions.
Dr. Lewis notes Jamaica has completed 33 out of forty recommendations given to them.
He says the outstanding recommendations must be addressed expeditiously should Jamaica be removed from FATF’s Grey List.