Small Ferguson…This recognition by the FATF provides a further boost to our local capital markets.
Financial industry leaders and experts have welcomed Jamaica’s removal from the Financial Action Task Force (FATF) “grey list” following the country’s completion of measures to strengthen its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) protocols.
The announcement came on Friday after the FATF’s three-day plenary meeting in Singapore, which saw Jamaica and Turkey removed from the grey list and Monaco and Venezuela added.
Jamaica was first added to the grey list in February 2020 and has been threatened on multiple occasions with being “blacklisted” if it does not quickly complete its action plan, which expires in January 2022.
Jamaica’s removal comes on the heels of other regional countries being removed from the grey list: Barbados was removed from the list in February 2024, Panama and the Cayman Islands in October 2023, and Trinidad and Tobago in February 2020. Haiti remains the only Caribbean region on the grey list, along with 20 other territories.
“A FATF team visited Jamaica in April this year and found that substantial steps had been taken to improve the AML/CFT/CPF program and that all items in the action plan had been addressed. This included improving understanding of money laundering and terrorist financing risks, implementing risk-based supervision of financial institutions, and, as a third example of oversight, demonstrating that accurate, up-to-date and timely beneficial ownership information is available,” FATF Chairman T. Raja Kumar said at a hybrid press conference on Friday.
FATF is an intergovernmental organization that aims to combat money laundering and terrorist financing. Jurisdictions that are subject to increased scrutiny are placed on the grey list, while others that are subject to requests for action are placed on the black list. Currently, there are 21 jurisdictions on the grey list and three on the black list. Being blacklisted has severe economic consequences for the listed country, including foreign banks reducing transactions with the listed country. This move restricts their ability to engage in commercial activities such as online shopping, importing goods, and expanding their businesses.
The announcement, posted on X (formerly Twitter), was met with thunderous applause as lawyer Grace Lind and compliance analyst Victoria Houghton commended the actions of all involved in getting Jamaica off the list. Other leaders also hailed the development.
“Jamaica’s removal from the grey list is a very positive development for the financial sector and the economy as a whole, as it sends a signal to international investors and financiers that Jamaica is a safe destination for their funds. This achievement for Jamaica is the result of years of hard work by legislators, regulators, the Ministry of Finance, industry experts from the financial services sector and several other sectors. We should all be proud of this and congratulate all involved,” Christopher Zacca, president and CEO of Sagicor Group Jamaica, said in an emailed response to the Jamaica Observer.
Ramon Small Ferguson, president of the Securities Dealers Association of Jamaica, added: “I view Jamaica’s removal from this list as tantamount to FATF’s endorsement of Jamaica’s domestic regulations and compliance in all areas of CFT/AML. Further, Jamaica’s domestic regulations are consistent with international best practice norms. Domestic securities dealers play an increasingly important role in attracting and allocating capital to a wide range of national projects, such as infrastructure and large scale commercial projects. This endorsement by FATF is a further boost to Jamaica’s domestic capital markets.”
“The findings of this study allow Jamaica to close a challenging but very enlightening chapter, while simultaneously beginning a new one in which we consolidate and build on the achievements of this period. This chapter has enabled us to develop a framework that ensures that Jamaica’s AML/CFT/CPF infrastructure remains up-to-date, appropriate and contextually tailored to support our broader economic plans, enable greater financial inclusion, and help us continue to develop our financial, legal and law enforcement services while ensuring they are future-ready,” said Jamaica’s Finance Minister Nigel Clarke in his opening remarks at the Singapore Assembly.
Singapore’s Kumar’s term as FATF Chair ended today, June 30, with Friday’s session marking the sixth and final plenary session of his term. Mexico’s Elisa de Anda Madrazo will become the next FATF Chair, serving from July 2024 to June 2026. Anda Madrazo outlined five key priorities for her presidency, including ensuring the success of the new assessment round, strengthening the cohesion of the global network, and supporting the effective implementation of revised FATF standards with a focus on asset recovery, beneficial ownership, and virtual assets.
Jamaica will assume the chair of the Caribbean Financial Action Task Force (CFATF) at the organization’s 59th General Assembly, which will be held in Jamaica in December 2024. MR (Angelo) Brete from Albania will serve as CFATF Chair for 2023-2024, while Dawn Spicer from Trinidad will serve as CFATF Executive Secretary. Dr Clark is currently Vice-Chair of the CFATF and will assume the role of Chair in December.
“As such, Jamaica, like other countries, is preparing for the fifth round of globally applicable AML/CFT/CPF Mutual Evaluations, scheduled for mid-2026. Accordingly, by the end of 2025, Jamaica will need to amend or enact new legislation to (i) regulate virtual assets and virtual asset providers, (ii) require registration of not-for-profit entities, and (iii) promulgate regulations addressing specific targeted financial sanctions related to proliferation,” the Treasury press release concludes.
