Senate Approves Order to Tackle Money Laundering

• The Senate recently approved the Proceeds of Crime (Designated Non-Financial Institution) (Trust and Corporate Services Providers) Order, 2022. This act has been incorporated to strengthen Jamaica’s stance in its fight against money laundering. 
• The implementation of the act provides a signal to international stakeholders that Jamaica will comply with set international obligations and practices. In February 2020, Jamaica was placed on a ‘grey list’ by the Financial Action Task Force (FATF) for weaknesses in its Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) regime. 
• This new law represents a step in the right direction as it aims to strengthen the effectiveness of Jamaica’s AML/CFT framework and address identified technical compliance deficiencies with the Financial Action Task Force (FATF) recommendations. 
• Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Senator Matthew Samuda, who brought the Order before the Senate, said “It should be noted that the designation of the Trust and Corporate Services Providers as Designated Non-Financial Institutions under the Act will allow any person or entity providing a trust service, or a corporate service to fall within the regulated sector.”
• As the government implements measures to tackle uncertainties surrounding money laundering and terrorism financing through regulation, this increases the likelihood of Jamaica being removed from the FATF’s grey list as well as its status as a high risk third party country will be repealed. This would cause banks and other and financial and tax firms to scrutinize less closely their clients with dealings or investments, with or in Jamaica. Consequently, this would enhance Jamaica’s attractiveness to international stakeholders and may provide a boost in foreign direct investment.

• (Sources: JIS News & NCBCM Research)