The Bank of Jamaica (BOJ) expects certain positive developments from Jamaica’s removal last week from the Financial Action Task Force (FATF) grey list.

The grey list represents countries identified as having strategic deficiencies in their Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) frameworks. Arising from Jamaica’s removal from the list, the BOJ expects more seamless financial transactions between persons in the country and those overseas, inclusive of remittance transfers.

In welcoming Jamaica’s removal from the grey list, the BOJ says “This action has significant positive implications for the country’s reputation in the international financial community. The development will enhance confidence among investors and trading partners thereby improving Jamaica’s economic potential.”

In a recent statement, the Central Bank noted, “Exiting the enhanced monitoring process also sends an important signal to correspondent banking partners, who facilitate the transfer of funds internationally, that Jamaica is a reputable jurisdiction that now should not require enhanced review of transnational transactions. In this context, exiting the FATF ‘grey list’ is an important milestone in a series of initiatives aimed at significantly reducing or eliminating the threat of further de-risking by correspondent banks”.

De-risking negatively impacted the ability of some Jamaican financial institutions to provide services to persons and businesses.

The BOJ points to the importance that the collective efforts and synergies that resulted in Jamaica exiting the FATF grey list become entrenched to ensure that Jamaica maintains its positive standing in the global economic and financial system. 

In this regard, the BOJ is working with other AML-CFT authorities, will continue the implementation of measures to strengthen its capacity for AML/CFT oversight.

The FATF at its Plenary held in Singapore last Friday (June 28), removed Jamaica from the list of countries identified as having strategic deficiencies in its AML/CFT frameworks.