Banker's Academy AML Training by Country

Anti Money Laundering (AML) By Country: Jamaica

Anti Money Laundering (AML) in Jamaica

Jamaica has never been considered a major hub for money laundering. Still, the country has recently experienced many changes, which have increased the potential for illegal funds transfers. Also, changes may soon come within the country, including establishing an offshore financial center and the licensing of large casino gaming that could increase the risk of money laundering.

The majority of laundered funds in Jamaica result from drug trafficking, organized crime groups, domestic fraud and extortion schemes. These illegal funds are generally transferred into legitimate markets through the use of unregulated investments and remittances. In 2007, the Government of Jamaica passed the Proceeds of Crime Act (POCA), criminalizing money laundering related to narcotics offenses, fraud, firearms and human trafficking, terrorist financing and corruption. The Act allows for the criminal and civil forfeiture of money and property related to these activities, applying to all property or assets associated with an individual suspected or convicted of involvement with a money laundering crime.

The POCA also set up regulations for financial institutions, requiring institutions to maintain records concerning transactions and identification for at least five-years and to report all transactions greater than 15,000 USD. The POCA also requires all financial institutions to report any suspicious transactions, no matter the amount, to Jamaica�s Financial Intelligence Unit (FIU), a unit within the Financial Investigation Division of the Ministry of Finance. The Bank of Jamaica, Jamaica�s Central Bank, ensures that institutions within the financial sector comply with anti-money laundering and counterterrorist financing provisions.

The Economy of Jamaica

Although the Jamaican economy has experienced a history of development, it has recently been struggling. Jamaica currently has a large debt burden, resulting from government bailouts to failing sectors of the economy. Unemployment is also a major problem, affecting the Jamaican economy and hindering growth.

However, the Jamaican economy continues to thrive in certain sectors. The country�s economy is highly reliant on the services industry, which currently accounts for more than 60% of the country�s GDP. Along with services, the country continues to derive growth from foreign exchange and remittances, which account for nearly 20% of Jamaica�s GDP.

Banking in Jamaica

The Bank of Jamaica is Jamaica�s Central Bank, established by the Bank of Jamaica Law in 1960. The Central Bank was created to aid the country�s development by creating a regulated financial structure.

The Bank was created to serve four major functions: the issuing and redeeming of notes and coins; keeping and administering Jamaica�s reserves; influencing the volume and conditions of supply credit, thereby promoting the greatest expansion in production, trade and employment; and fostering the development of money and capital markets in Jamaica, including acting as banker to the Government.

Jamaica's Currency

The currency in Jamaica is the Dollar, which has been Jamaica�s official currency since 1969, replacing the Jamaican Pound at a rate of one dollar to ten shillings. Since its inception, the Dollar has been subject to high rates of inflation, affecting the Jamaican economy.

The Dollar is issued in both banknotes and coins. Coins currently circulated include those with denominations of 1, 10 and 25 cents, although these coins are rarely used, and 1, 5, 10 and 20 dollars. Banknotes are circulated in denominations 50, 100, 500, and 1000 dollars. A 5000 dollar banknote is scheduled to be released in 2009.