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Jamaica Country Summary

57.52 Country Rating /100
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Sanctions

No

FATF AML Deficient List

Yes

Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center

Background Information


Anti Money Laundering

FATF Status

Jamaica is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement  -  23 February 2024

In February 2020, Jamaica made a high-level political commitment to work with the FATF and CFATF to strengthen the effectiveness of its AML/CFT regime. At its February 2024 Plenary, the FATF made the initial determination that Jamaica has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of the AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.

Jamaica has made key reforms, including: (1) developing a more comprehensive understanding of its ML/TF risk; (2) including all FIs and DNFBPs in the AML/CFT regime and implementing adequate risk based supervision in all sectors; (3) taking appropriate measures to prevent legal persons and arrangements from being misused for criminal purposes, and ensuring that accurate and up to date basic and beneficial ownership information is available on a timely basis; (4) taking proper measures to increase ML investigations and prosecutions, in line with the country’s risk profile, and increase the use of financial intelligence information in ML investigations; (5) implementing targeted financial sanctions for terrorist financing without delay; and (6) implementing a risk based approach for supervision of its NPO sector to prevent abuse for TF purposes.

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Jamaica was undertaken in December 2023. According to that Evaluation, Jamaica was deemed Compliant for 10 and Largely Compliant for 27 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

US Department of State Money Laundering assessment (INCSR)

Jamaica is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview 

Money laundering in Jamaica is largely perpetrated by organized criminal groups, including some with links to powerful Jamaicans and influential players in some unregulated sectors.  In 2020, the country recorded many financial crimes related to advance fee fraud (lottery scams), corruption, counterfeit goods, small arms trafficking, and cybercrime.     

The Government of Jamaica has enforced the asset forfeiture provisions of the Proceeds of Crime Act (POCA) with moderate success, but the law still is not being implemented to its fullest potential due to difficulties prosecuting and achieving convictions in financial crime cases.  Law enforcement, prosecutors, and the judiciary lack sufficient resources to investigate and prosecute these crimes efficiently and effectively.

Sanctions

There are no international sanctions currently in force against this country.

Bribery & Corruption

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           44

World Governance Indicator – Control of Corruption             54

Economy

The Government of Jamaica (GoJ) considers foreign direct investment (FDI) a key driver for economic growth and in recent years it has reformed its economy to improve the investment climate. Despite the negative effects of the COVID-19 pandemic, the war in Ukraine, and the ongoing tightening of global financial conditions, Jamaica’s sound policy framework and policies prioritizing macroeconomic stability helped the economy recover strongly in 2022. The expansion brought the unemployment rate to historic lows, causing some challenges for employers.

The Jamaican economy grew by 5.2 percent in 2022, clawing back the lost output associated with the COVID-19 shock a year ahead of projections. This recovery was particularly impressive, as following previous shocks the Jamaican economy plunged into deeper recession. While the entire economy registered growth, tourism continued to lead the resurgence in output. The economic expansion had a positive impact on revenues, allowing the government to maintain its fiscal consolidation program, including a reduction in the debt to GDP ratio to below pre-pandemic levels. The country has now shed almost 60 percentage points from its debt to GDP ratio in less than a decade and is on track to reach its target of 60 percent of GDP by 2028. The fiscal space created by debt reduction allowed the government to execute public sector wage reforms. Inflation ended 2022 at near to 10 percent but began trending lower in 2023.

The International Monetary Fund (IMF) Article IV Consultation released on February 10 lauded Jamaica’s fiscal performance, noted international reserves remain at healthy levels, and the financial system is well capitalized and liquid. The IMF’s Executive Board approved $1.7 billion in credit to Jamaica to protect against global economic, pandemic, and climate risks – a testament to the country’s sound economic policies. Fitch Ratings upgraded the country’s sovereign debt outlook to positive in March 2023, attributing the revision to the significant progress in debt reduction, its institutional framework, and favorable financing conditions.

Despite the economic progress, Jamaica’s high crime rate, corruption, and comparatively high taxes have stymied investment prospects. The country’s Transparency International corruption perception ranking improved marginally from 70 (2021) to 69 (2022) out of 180 countries. Despite laws that prescribe criminal penalties for corrupt acts by officials, there were still reports of corruption at some ministries and agencies. Measures implemented to address crime continued into 2022, including the continuation of Zones of Special Operations in several high crime areas of the island however, it did not significantly impact the overall murder rate. Jamaica continues to have one of the highest homicide rates in the world. The Embassy has an active Overseas Security Advisory Council consisting of U.S. companies in the hospitality, aviation, and other key sectors.

In 2021, the U.S. direct investment position in Jamaica was $39 million, while Jamaica had $60 million in investment in the United States. Based on 2021 World Investment Report, Jamaica received total FDI of $321 million, up 21 percent and had outward FDI of $56 million. Spain and Mexico were the major drivers of FDI in 2021. Tourism, mining, and energy have been the major areas of investment inflows into the island. The host government has also promoted business process outsourcing (BPO), but investment in the BPO industry has been constrained by labor availability. The private sector anxiously awaits pending renewable energy tenders. Investments in improved air, sea, and land transportation have reduced time and costs for transporting goods and have created opportunities in logistics services. However, port security deficiencies and customs delays continue to present challenges.

 

Country Links

Financial Investigations Division (FID)

Financial Services Commission (Jamaica)

Bank of Jamaica

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