Microcredit licences granted under the new Microcredit Act
/ Our Today
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The Bank of Jamaica has announced that five institutions have been licensed under the Microcredit Act, 2021.
In a statement, the Central Bank offered congratulations to:
Access Financial Services Limited Trublu Financial Services Limited Kingston Finance Limited Nykhana Investment Company Limited and Kris An Charles Investments Company Limited
“These organisations are the first of more than 100 applicants to have achieved this milestone,” the BOJ said.
The Microcredit Act, passed in January last year, is aimed at licensing and regulating microcredit institutions (MCIs) that provide financing to individuals, micro, small and medium sized enterprises. Under the Act, Bank of Jamaica is charged with general administration, as well as the supervision of microcredit institutions. The Consumer Affairs Commission is named as the body with responsibility for making and issuing a code of conduct for licensees on consumer related matters and the investigation of complaints brought to it by a consumer of a microcredit service.
The aims of the Act are:
- To minimise the likelihood of the sector being used as a conduit for money laundering and the financing of terrorism;
- To facilitate the development of the sector; and
- To support consumer protection for individuals and businesses who borrow from MCIs.
According to the BOJ, the new licensees will have an obligation to strengthen their internal control environments to become resilient to money laundering, terrorism financing and related risks, and make the required reporting to the appropriate authorities where they become aware of illicit activities.
“It is also expected that, with time, licensees will benefit from the advantages that accrue as a consequence of the formalisation of their business operations,” the BOJ said.
The Bank said it was looking forward to the approval of additional applicants as it recognised the significant role played by the microcredit sector in reaching an underserved segment of the population and facilitating Jamaica in achieving its economic goals.
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