Regulation of virtual assets and voluntary registration of non-profit organizations coming

Durrant Pate/Contributor

While Jamaica has been removed from the Financial Action Task Force (FATF) grey list, the government has started work on the remaining three recommendations that the country is partially compliant with.

Jamaica is now compliant with 37 of the 40 FATF recommendations, which resulted in the country being removed from the grey list of countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) frameworks that could threaten the global financial system. This was done at FATF’s June Plenary, which took place in Singapore on June 26–28, 2024.

In a statement to the House of Representatives on Tuesday, July 9, Dr Nigel Clarke, Minister of Finance and Public Service, declares that the administration has already commenced work to promulgate the necessary legislation to allow the country to become compliant with the remaining three FATF recommendations.

He gave a commitment to the parliament that legislation for the regulation of virtual assets and their service providers and provisions to make the now voluntary registration of non-profit organizations would be tabled for passage.

Preparing for FATF 5th round mutual evaluation 

This is in addition to legislation to ensure that the appropriate regulations are in place for targeted financial sanctions related to the proliferation of weapons of mass destruction and their financing, in keeping with Jamaica’s obligations to comply with the United Nations Security Council Resolutions (UNSCRs).

“I will therefore be seeking the support of this Honourable House in getting these pieces of legislation passed in time for them to be considered in our 5th round mutual evaluation,” Clarke said.

Jamaica will also undergo its 5th round of mutual evaluation in mid-2026, for which preparation has already started. These laws are to be in place by the first quarter of 2025, the latest for them to be considered to be in effect for the purposes of the mutual evaluation. 

As part of the improvement of Jamaica’s AML/CFT framework, the Finance and Public Service Minister declared his commitment to “continuing and ramping up the use of technology in important infrastructure, such as electronic registries, supervisory technologies, and a centralized electronic identification database that will all allow for ease in accessing financial services. Importantly, this will help us to continue understanding the ever-evolving nature of ML/TF/PF (proliferation financing) risks so that we can put the necessary measures in place to appropriately mitigate and manage them.” 

Removal from grey list

Jamaica was removed from the list of countries, marking the end of a challenging four-year period during which Jamaica was classified as a grey-listed country. Throughout this time, Jamaica worked diligently to meet the requirements of the 13-point Action Plan, which was necessary for exiting the FATF’s increased monitoring process and ultimately being delisted.

Clarke said the conclusions from the FATF Joint Group endorse the sustainability of the measures that Jamaica has implemented in modernizing its AML/CFT architecture, noting that this achievement is one that this government is committed to sustaining and building upon. 

According to him, “the modernization of Jamaica’s AML/CFT regime will allow Jamaica to close an extremely edifying and clarifying chapter. It has also afforded us a springboard for ensuring that Jamaica’s AML/CFT infrastructure is always up-to-date, relevant, and tailored to our circumstances—a framework that will support our broad-based economic program and allow for financial inclusion.”

He says this framework will serve Jamaica well as the country continues to develop its financial services, legal structure, and law enforcement services such that the country is in a good position to meet any future evaluations, promising, “This government will ensure that laws and regulations are promulgated on a timely basis, and we will continue supporting the various agencies, including the National Anti-Money Laundering Committee (NAMLC) that reports directly to me.“