July 2, 2024
The Bank of Jamaica (BOJ) highlighted that on Friday, June 28, 2024, that the Financial Action Task Force (FATF), at its Plenary in Singapore (June 26-28), has removed Jamaica from the list of countries identified as having strategic deficiencies in their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) frameworks, commonly known as the ‘grey list.’
This action has significant positive implications for the country’s reputation in the international financial community. The development will boost confidence among investors and trading partners and therefore improve Jamaica’s economic potential. Exiting the enhanced monitoring process also sends a crucial signal to correspondent banking partners, who facilitate the transfer of funds internationally, indicating that Jamaica is now a reputable jurisdiction that should not require enhanced review of transnational transactions. In this context, exiting the FATF ‘grey list’ is a significant milestone in a series of initiatives aimed at reducing or eliminating the threat of further de-risking by correspondent banks. Recently, de-risking negatively impacted the ability of some Jamaican financial institutions to provide services to individuals and businesses. Additionally, with the recent action by FATF, financial transactions between individuals in Jamaica and those overseas, including remittance transfers, could become more seamless over time.
BOJ noted that it is crucial that the collective efforts and synergies that led to Jamaica exiting the FATF grey list be maintained to ensure Jamaica’s positive standing in the global economic and financial system. In this regard, the Bank of Jamaica, in collaboration with other AML/CFT authorities, will continue implementing measures to strengthen its capacity for AML/CFT oversight.
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