Jamaica Parliament Gives Green Light To New Initiatives To Deal With Crime Proceeds

KINGSTON, Jamaica CMC – The Jamaica parliament has approved legislation that places a higher limit on cash transactions with financial institutions as the authorities move to deal with the proceeds of crime.

Parliament agreed to the Proceeds of Crime (POCA) Amendment Bill, which now places a one million dollar (One Jamaica dollar = US$0.01 cents) limit on cash transactions with financial institutions. Legislators had agreed to increase the ceiling from J$500,000 but not to the original proposal of two million.

The one million dollar limit means that under the provisions for the reporting of suspicious transactions, cash transactions of over one million cannot be undertaken by anyone other than a “permitted person,” such as a bank or licenced financial institution.

National Security Minister, Peter Bunting, who piloted the legislation, said it was important for Jamaica to be fully compliant with the requirements of the Caribbean Financial Action Task Force (CFATF).

In its last mutual evaluation in June 2005, Jamaica was assessed as being compliant with 30 of the 48 recommendations; partially compliant with 13; and non-compliant with five.

Bunting told legislators that between 2005 and 2013, the government has taken several actions to address the outstanding issues, including the passage of the POCA in 2007, which is aimed at strengthening the country’s anti-money laundering framework, and combating the financing of terrorism.

Bunting said while Jamaica continues to review its laws to ensure compliance with the requisite international standards, there were still some unresolved issues.

He said that during the 35th CFATF plenary in May 2012, it was determined that based on lack of progress in addressing the remaining deficiencies identified in 2005, Jamaica should be moved to the next stage in the follow-up process, which is a CFATF high level mission to Jamaica.

This was undertaken in September 2012, and the country submitted an action plan to address all outstanding deficiencies within specific timelines, or face sanctions.

Bunting said these sanctions could include: a public statement issued by the CFATF reflecting that Jamaica is insufficiently compliant; suspension from the CFATF; or termination of membership for default.

“Obviously, if that were to happen, we would be in a serious position,” the said.

Government legislator, Fitz Jackson, said he was concerned that small and medium-sized operations, in particular, could be forced to bear too many bank charges for daily transactions, which amount to or exceed $500,000.

“The last thing we want to do is foist any incremental expenses on their business transactions on a day-to-day basis…it is those incremental transactions that make the difference for many businesses,” Jackson said.

Opposition Spokesman on National Security, Delroy Chuck, said while it was a good idea to move away from cash transactions, there are “dangers” to having a cash limit of only J$500,000, as Jamaicans for the most part use cash.

He noted also that in developed societies such as Europe where there are limits on cash use, the systems which facilitate electronic transactions are well advanced, and easy to use.