The Private Sector Organisation of Jamaica (PSOJ) has called for the Government to take urgent steps to fully empower the relevant agencies and oversight bodies to address all shortcomings related to the detection, prosecution and deterrence of fraud under the Financial Institutions Act 1992 (amended 2004), the Bank of Jamaica Act 1960 and the Proceeds of Crime Act 2007.

In a statement today (January 18), responding to recent revelations of fraudulent activities involving a number of local financial institutions, the PSOJ said these activities are of grave concern given the devastating impact that corporate malfeasance can have on all areas of society.

“We acknowledge and welcome the pursuit of remediative steps that are currently being pursued by the impacted institutions and our regulatory and oversight bodies,” the PSOJ statement read.

“We urge speedy and fulsome communication to the public of the results of these remedies so that the chips are seen to fall wherever they may.”

The organisation also stressed the importance of the “gatekeeper” role played by these bodies in protecting the island’s financial ecosystem from instances of misappropriation, misconduct or illegal activity.  

“We anticipate transparency from all parties involved concerning the identification of material risk, the efficacy of internal quality control standards to mitigate such risk and the robust exercise of a duty of fiduciary care to the public,” the PSOJ said.

“We also look forward to the appropriate disclosure of results from ensuing investigations.”    

According to the PSOJ, in the continued pursuit of including more individuals in the formal financial sector, all stakeholders must ensure that the highest standards of financial oversight are maintained to protect the financial assets and investments made by customers. 

In making its call for Government to take steps to fully empower the relevant agencies and oversight bodies to address shortcomings, the organisation said it acknowledged the findings from oversight bodies, including the Financial Services Commission (FSC), which indicate that these fraudulent activities, “to the best of their knowledge”, are not systemic.

The PSOJ noted that the FSC, in its press briefing earlier today, highlighted that “this despicable alleged act of dishonesty by an employee at SSL (and possibly collaborators) cannot be taken as symptomatic of the risk for the entire industry”.

Said the organisation: “The ongoing efforts to identify and prosecute employees who breach the confidence and trust of the clients they’ve committed to serving are of paramount importance.

“To attain our goal of strengthening the country’s financial development, we must ensure that all citizens benefit from a resilient financial system that serves their best interests and that justice applies equally to all.” 

The PSOJ added that it would continue to monitor the ongoing situation and work with all relevant stakeholders to maintain transparency and integrity.