Gov’t Committed to Strengthening Jamaica’s Financial Framework

• Minister of Education, Skills, Youth and Information, Senator Dr. the Hon. Dana Morris Dixon, affirmed the Government of Jamaica’s (GOJ’s) commitment to strengthening the country’s financial regulatory framework to safeguard citizens’ interests and ensure full compliance with global standards.
• Minister Morris Dixon was contributing to a debate on the Financial Services Commission (Amendment) Act, 2024 in the Senate on Friday, November 1, 2024. The Bill seeks to address deficiencies in existing laws to fight money laundering and ensure compliance with international anti-money laundering standards.
• Dixon noted that the legislation represents an essential step to modernise and strengthen Jamaica’s regulatory framework to respond to local needs and put its systems on par with international standards and best practices. She cited the tireless work done to implement policies and laws, which resulted in the country being removed from the Financial Action Task Force’s (FATF) Grey List on June 28 this year.
• Minister Moris Dixon also pointed to the Twin Peaks Model of Financial Regulation and Supervision as one measure in enhancing the country’s financial sector supervision and regulation. Under the twin peaks model, the Bank of Jamaica (BOJ) will be fully responsible for the prudential supervision of all bank and non-bank financial institutions. Meanwhile, the Financial Services Commission (FSC) will be transformed into a new regulatory entity that will supervise the market conduct of all bank and non-bank financial institutions to protect consumers.
• Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, in piloting the Bill, said…the legislation gives Jamaica another regulatory tool to enhance financial sector stability and offer a greater level of protection for financial consumers.
• While the GOJ pushes for a stronger financial framework, Jamaica faces stability challenges like high interest rates and consequent credit and market risk increases, financial groups’ interconnectedness, climate, and cyber risk. These risks are prevalent in other Caribbean countries. That said, Jamaica has some specificities compared to its Caribbean neighbours like a developed security market and the significant role played by security dealers. Against this background, financial stability is equally as important as other policies requiring comprehensive strategies and the support of the government and other key stakeholders like the Central Bank to support financial stability.

(Sources: JIS, IMF & NCBCM Research)