One of the country's oldest and largest commercial banks has been the subject of litigation by customers operating unregulated investments schemes who are seeking to resist the bank's notice to them to close their accounts within a stipulated time. The actions of the bank to close these accounts have elicited cries of discrimination and 'bullyism' from some members of the public.
The financial services sector is one of, if not, the most highly regulated sector of the economy. Financial services institutions must operate within an extensive regulatory framework which includes strict adherence to provisions under the Proceeds of Crime Act and the Proceeds of Crime (Money Laundering Prevention) Regulations (POCA), as well as Guidance issued by the Regulators (the Bank of Jamaica and the Financial Services Commission).
Prevent money laundering
Under the provisions of POCA, financial institutions (i.e. commercial banks, merchant banks, building societies, credit unions, securities dealers and investment advisers, insurance companies and intermediaries, money remitters and cambios) must establish programmes, policies and procedures to detect and prevent money laundering. Among the policies and procedures which are followed are Know Your Customer (or Customer Due Diligence) procedures which include establishing the true identity of customers, the intended nature and purpose of the customers business, monitoring and verification of customers' transactions.
Where the transaction profile of a customer's account(s) has changed without a plausible or credible reason, the financial institution must make a report of the transaction(s) to the Financial Investigations Division (FID). The FID can then request further information from the institution pertaining to the report which has been made and can also seek, for example, a Monitoring Order instructing the institution to provide information on the transactions which take place through the account(s) over a stipulated period of time. The institution will maintain the account(s) and when the order expires will close the account(s) and/or sever its relationship with the customer. It should be noted that the bank and its employees cannot disclose to anyone that a report has been made, or an order has been served on the bank, or that an investigation is taking place. Disclosure attracts a penalty of a fine and/or imprisonment.
Cross-border transactions
Commercial banks, in particular, are part of an international banking system and have banking relationships with overseas banks to facilitate cross-border transactions for their customers. Overseas banks operate under similar anti-money laundering/proceeds of crime legal regimes as that of local banks. The latter must ensure that their customers' activities do not jeopardise their relationship with overseas banks. For example, relations with banks in the United States of America are governed by the USA Patriot Act. Certain provisions under the Patriot Act can lead to the US bank ending its relationship with a Jamaican bank because of the deemed 'status' of the customer of a local bank by the US authorities. Jamaican banks must therefore comply with certain legal provisions under which their overseas counterparts operate.
Jamaica's largest banks have parent companies/major shareholders in North America. These banks must also comply with certain laws governing the operations of their parent companies/major shareholders. Failure to do so will jeopardise the operations of their parent companies/major shareholders.
In the international arena, unregulated investment schemes are considered to be high-risk vehicles for fraud, money laundering, tax evasion and other types of financial crimes.
It is prudent for a bank to sever its relationship with any scheme(s) which the court has stated is operating in breach of the law; which admits that it is operating in contravention of the law; or which the bank reasonably believes may pose a threat to its licensed status or that of its overseas parent companies/shareholders and its relationship with overseas banks.
http://www.jamaica-gleaner.com/gleaner/20080128/cleisure/cleisure3.html
Showing posts with label Jamaica. Show all posts
Showing posts with label Jamaica. Show all posts
on Wednesday, May 23, 2012
Government prosecutors have begun marshalling evidence in the trial involving the National Commercial Bank (NCB) which is accused of breaching the Money Laundering Act.
The trial started on Monday in the Half-Way-Tree Criminal Court.
Charges were laid against NCB last year that it allegedly breached the Act by failing to report the financial transactions of alleged drug kingpin Norris 'Deedo' Nembhard.
In a landmark move, the Financial Investigation Division (FID) of the Ministry of Finance served summonses on NCB in February last year concerning six threshold transactions.
The FID accused the bank of failing to report to the relevant authority, information on Deedo Nembhard's accounts.
The Act requires banks to report all cash transactions above US$50,000 to the FID.
NCB confirmed that the transactions occurred on Mr. Nembhard's accounts at one of its branches over a period of eight months in 2003.
However, in its defence NCB said when the transactions, totalling $US870,000, were discovered, it took disciplinary action against the employees involved.
The bank said it also filed the requisite reports based on information available at the time.
But investigators said the bank only filed the reports after they began probing the financial accounts of "Deedo" Nembhard and his family.
Government prosecutors intend to argue that NCB failed to report on multi-million dollar transactions of the accused drug kingpin during the "period specified" as outlined under the Act.
But NCB intends to argue that there is no set time line under the Act which requires the bank to report on the transactions, therefore they cannot be held liable.
The trial continues on September 8.
http://www.radiojamaica.com/content/view/8278/26/
The trial started on Monday in the Half-Way-Tree Criminal Court.
Charges were laid against NCB last year that it allegedly breached the Act by failing to report the financial transactions of alleged drug kingpin Norris 'Deedo' Nembhard.
In a landmark move, the Financial Investigation Division (FID) of the Ministry of Finance served summonses on NCB in February last year concerning six threshold transactions.
The FID accused the bank of failing to report to the relevant authority, information on Deedo Nembhard's accounts.
The Act requires banks to report all cash transactions above US$50,000 to the FID.
NCB confirmed that the transactions occurred on Mr. Nembhard's accounts at one of its branches over a period of eight months in 2003.
However, in its defence NCB said when the transactions, totalling $US870,000, were discovered, it took disciplinary action against the employees involved.
The bank said it also filed the requisite reports based on information available at the time.
But investigators said the bank only filed the reports after they began probing the financial accounts of "Deedo" Nembhard and his family.
Government prosecutors intend to argue that NCB failed to report on multi-million dollar transactions of the accused drug kingpin during the "period specified" as outlined under the Act.
But NCB intends to argue that there is no set time line under the Act which requires the bank to report on the transactions, therefore they cannot be held liable.
The trial continues on September 8.
http://www.radiojamaica.com/content/view/8278/26/
on Wednesday, May 9, 2012
A 45-year-old Jamaican woman was arrested by the Drug Enforcement Commission (DEC) in Zambia for alleged money laundering activities involving more than US$7 million.
The accused is systems analyst and businesswoman Ingrid Loiten.
Ms. Loiten, who reportedly resides in Johannesburg, South Africa, was arrested more than a month ago and faces multiple fraud charges.
The Sub Saharan Informer, a Zambian newspaper, revealed that the money was deposited in an account with a Zambian commercial bank called Investrust.
DEC public relations and press liaison officer, Rosten Chulu, said the anti-money laundering unit arrested Ms. Loiten, after she claimed the funds came from a genuine source.
Zambian investigators accused Ms. Louiten and other persons of fabricating false Jamaican company documents from which she received approximately US$7 million.
Zambian newspapers reported that Ms. Loiten said the project proposal she intended to implement with the money was supported by family members and financiers from the European Union and Oil Producing Countries (OPEC).
The DEC has seized the funds.
http://www.radiojamaica.com/content/view/7918/26/
The accused is systems analyst and businesswoman Ingrid Loiten.
Ms. Loiten, who reportedly resides in Johannesburg, South Africa, was arrested more than a month ago and faces multiple fraud charges.
The Sub Saharan Informer, a Zambian newspaper, revealed that the money was deposited in an account with a Zambian commercial bank called Investrust.
DEC public relations and press liaison officer, Rosten Chulu, said the anti-money laundering unit arrested Ms. Loiten, after she claimed the funds came from a genuine source.
Zambian investigators accused Ms. Louiten and other persons of fabricating false Jamaican company documents from which she received approximately US$7 million.
Zambian newspapers reported that Ms. Loiten said the project proposal she intended to implement with the money was supported by family members and financiers from the European Union and Oil Producing Countries (OPEC).
The DEC has seized the funds.
http://www.radiojamaica.com/content/view/7918/26/
on Tuesday, May 1, 2012
Many of us by now have heard of the Proceeds of Crime Act ("POCA") and of the global concern relating to money laundering. But for many, these are viewed as issues that concern financial institutions and criminals not everyday law-abiding citizens.
If this is what you think, you could not be more wrong. True, POCA and money laundering are issues that financial institutions must be particularly concerned about, primarily in light of the specific regulatory procedures which are spelt out for the regulated sector concerning reporting obligations as well as understanding how to deal with forfeiture and restraint orders which can impact the security interest which the financial institution may hold.
The everyday law-abiding citizen must, however, also become familiar with POCA and the requirements concerning money laundering as these issues can also impact them.
The ordinary law-abiding citizen may have unwittingly received criminal property against which the Financial Investigation Division of the Ministry of Finance ("FID") may seek to get a forfeiture order or a restraint order for that property to be forfeited to the crown or for persons to be prohibited from dealing with such property. It is important for such law-abiding citizen to know that recourse is available under POCA where the property was received for valuable consideration by a person acting in good faith and without notice. Quick action may, however, be necessary to safeguard the innocent person's interest in the property.
As for money laundering, although the regulations to POCA which have so far been issued are directed only at the regulated sector, it is important to note that every day citizens, can generally only protect themselves from unwittingly committing acts of money laundering if they report their suspicions to the FID, police or customs officer. The definition of moneylaundering is wide, and a person will be found to have committed this offence if he:
(a) engages in a transaction that involves criminal property;
(b) conceals, disguises, disposes of or brings into Jamaica any such property; and
(c) converts, transfers or removes any such property from Jamaica and knows or has reasonable grounds to believe at the time he does any of the above, that the property is criminal property.
Further a person will commit an offence if he enters into or becomes concerned in an arrangement that he knows or has reasonable grounds to believe facilitates (by whatever means) the acquisition, retention, use or control or criminal property by or on behalf of another person.
Let us consider the example of an ordinary law-abiding citizen who has entered into an arrangement to sell his house to another party and later becomes aware, before this sale is completed, of circumstances which lead him reasonably to believe that the other party was involved in money laundering activities. POCA makes it clear that in those circumstances, the ordinary law-abiding citizen could be guilty of money laundering if he without more, proceeds to complete the sale.
There is, however, a very simple easy step which could be taken to avoid the commission of the offence. The act provides that a person does not commit the offence of money laundering if he makes an "authorised disclosure" either before doing the act and after he has the appropriate consent, or after doing the act, if had intended to make the disclosure before but has a reasonable excuse for not doing so and the disclosure is made as soon as is reasonably practicable after doing the act.
Authorised disclosure is merely a disclosure to an authorised officer (FID, police or customs officer) or a nominated officer, in the case of the regulated sector. Although no form has as yet been prescribed for the making of disclosures by persons outside the regulated sector, a letter or some other similar step should suffice in the absence of such regulations.
"Appropriate consent" is either: (a) express consent given directly by the FID in response to an authorised disclosure to take whatever step is next contemplated by you, for example completion of your sale; (b) or will be deemed to have been given either by the end of the period of seven (7) days from receipt of the disclosure where no express notice is received that consent is refused, or by the end of the period of ten (10) days from express refusal of consent.
This therefore is an important protection for the ordinary law-abiding citizen who happens to find himself involved in a transaction with someone who he has reasonable grounds to believe is engaged in money-laundering activity.
Such law-abiding citizen should make a report to the police, the FID or a customs officer setting out the transaction with which he is involved and the grounds of which he is aware which cause him to believe that the other person is involved in money-laundering activity. If after seven (7) days, where the FID has not refused consent, or where they have refused consent, if after ten (10) days, no order has been obtained from the court prohibiting the transaction, the ordinary citizen will be able to proceed to complete his transaction without fear of himself committing an act of money laundering.
It is clear therefore that POCA and money laundering are issues not only for the financial sector but also for ordinary law-abiding citizens. Although the ordinary citizen does not have an obligation to report as is imposed on the regulated sector, the failure by the ordinary citizen to make a report could result in the commission of the offence of money laundering by the ordinary citizen which offence could easily have been avoided.
Hilary Reid is a Partner at Myers, Fletcher & Gordon and a member of the Firm's Commercial Department.
Source: Jamaica Observer
If this is what you think, you could not be more wrong. True, POCA and money laundering are issues that financial institutions must be particularly concerned about, primarily in light of the specific regulatory procedures which are spelt out for the regulated sector concerning reporting obligations as well as understanding how to deal with forfeiture and restraint orders which can impact the security interest which the financial institution may hold.
The everyday law-abiding citizen must, however, also become familiar with POCA and the requirements concerning money laundering as these issues can also impact them.
The ordinary law-abiding citizen may have unwittingly received criminal property against which the Financial Investigation Division of the Ministry of Finance ("FID") may seek to get a forfeiture order or a restraint order for that property to be forfeited to the crown or for persons to be prohibited from dealing with such property. It is important for such law-abiding citizen to know that recourse is available under POCA where the property was received for valuable consideration by a person acting in good faith and without notice. Quick action may, however, be necessary to safeguard the innocent person's interest in the property.
As for money laundering, although the regulations to POCA which have so far been issued are directed only at the regulated sector, it is important to note that every day citizens, can generally only protect themselves from unwittingly committing acts of money laundering if they report their suspicions to the FID, police or customs officer. The definition of moneylaundering is wide, and a person will be found to have committed this offence if he:
(a) engages in a transaction that involves criminal property;
(b) conceals, disguises, disposes of or brings into Jamaica any such property; and
(c) converts, transfers or removes any such property from Jamaica and knows or has reasonable grounds to believe at the time he does any of the above, that the property is criminal property.
Further a person will commit an offence if he enters into or becomes concerned in an arrangement that he knows or has reasonable grounds to believe facilitates (by whatever means) the acquisition, retention, use or control or criminal property by or on behalf of another person.
Let us consider the example of an ordinary law-abiding citizen who has entered into an arrangement to sell his house to another party and later becomes aware, before this sale is completed, of circumstances which lead him reasonably to believe that the other party was involved in money laundering activities. POCA makes it clear that in those circumstances, the ordinary law-abiding citizen could be guilty of money laundering if he without more, proceeds to complete the sale.
There is, however, a very simple easy step which could be taken to avoid the commission of the offence. The act provides that a person does not commit the offence of money laundering if he makes an "authorised disclosure" either before doing the act and after he has the appropriate consent, or after doing the act, if had intended to make the disclosure before but has a reasonable excuse for not doing so and the disclosure is made as soon as is reasonably practicable after doing the act.
Authorised disclosure is merely a disclosure to an authorised officer (FID, police or customs officer) or a nominated officer, in the case of the regulated sector. Although no form has as yet been prescribed for the making of disclosures by persons outside the regulated sector, a letter or some other similar step should suffice in the absence of such regulations.
"Appropriate consent" is either: (a) express consent given directly by the FID in response to an authorised disclosure to take whatever step is next contemplated by you, for example completion of your sale; (b) or will be deemed to have been given either by the end of the period of seven (7) days from receipt of the disclosure where no express notice is received that consent is refused, or by the end of the period of ten (10) days from express refusal of consent.
This therefore is an important protection for the ordinary law-abiding citizen who happens to find himself involved in a transaction with someone who he has reasonable grounds to believe is engaged in money-laundering activity.
Such law-abiding citizen should make a report to the police, the FID or a customs officer setting out the transaction with which he is involved and the grounds of which he is aware which cause him to believe that the other person is involved in money-laundering activity. If after seven (7) days, where the FID has not refused consent, or where they have refused consent, if after ten (10) days, no order has been obtained from the court prohibiting the transaction, the ordinary citizen will be able to proceed to complete his transaction without fear of himself committing an act of money laundering.
It is clear therefore that POCA and money laundering are issues not only for the financial sector but also for ordinary law-abiding citizens. Although the ordinary citizen does not have an obligation to report as is imposed on the regulated sector, the failure by the ordinary citizen to make a report could result in the commission of the offence of money laundering by the ordinary citizen which offence could easily have been avoided.
Hilary Reid is a Partner at Myers, Fletcher & Gordon and a member of the Firm's Commercial Department.
Source: Jamaica Observer
on Wednesday, February 14, 2007
Plans are in the final phase for insurance brokers and intermediaries to be designated as financial institutions.
The Senate has approved a resolution to designate these entities as financial institutions for the purpose of the Money Laundering Act.
Senator Noel Monteith, who moved the Money Laundering Resolution, said the measure was part of the country's efforts to meet its international obligations in terms of reducing money laundering.
He says it was recommended that anti-money laundering obligations be placed on all financial institutions including insurance brokers and intermediaries which remain outside the anti-money laundering regime.
Senator Monteith says the omission places the insurance sector in a risky position of being used by brokers and intermediaries to facilitate the laundering of the proceeds of crime.
http://www.radiojamaica.com/news/story.php?category=5&story=32851
The Senate has approved a resolution to designate these entities as financial institutions for the purpose of the Money Laundering Act.
Senator Noel Monteith, who moved the Money Laundering Resolution, said the measure was part of the country's efforts to meet its international obligations in terms of reducing money laundering.
He says it was recommended that anti-money laundering obligations be placed on all financial institutions including insurance brokers and intermediaries which remain outside the anti-money laundering regime.
Senator Monteith says the omission places the insurance sector in a risky position of being used by brokers and intermediaries to facilitate the laundering of the proceeds of crime.
http://www.radiojamaica.com/news/story.php?category=5&story=32851
Arising from the mention of the charges laid against National Commercial Bank Jamaica Limited in the Resident Magistrate's Court on February 8, and the statement issued by our bank also on February 8, several reports have been carried in the local and international media regarding the summonses served for failure to report threshold transactions under the Money Laundering Act.
Given the nature of this matter, our ability to respond to speculation and allegations is constrained by the fact that the matter is before the courts.
However, we are compelled to take steps to safeguard our reputation by responding to the inaccuracies stated in the news reports that have been carried to date with the following facts:-
1. The Money Laundering Act requires banks to report to the local Financial Investigations Division of the Ministry of Finance and Planning all cash transactions equal to and above US$50,000 or the equivalent in any currency (known as "threshold transactions"). The six summonses served on our bank made no mention of a failure to report "suspicious transactions".
2. The six summonses were for failure to report threshold transactions. The transactions described in the summonses in question were deposits for approximately J$50 million or approximately US$871,000 in total. The news reports of the charges levied on the Bank for several different transactions ranging from US$20 million to a total of US$27 million are grossly inaccurate.
3. No employee of National Commercial Bank Jamaica Limited has been named in any of the summonses received.
We wish to strongly encourage fair, accurate and balanced reporting in this matter, which took place four years ago, as failure in this regard does not promote the interest of justice and will detract from the significant advances that National Commercial Bank Jamaica Limited has made since 2003, to improve its compliance reporting regime and to increase its ability to assist in the fight against money laundering, terrorist financing, fraud and other illegal activity.
http://www.jamaica-gleaner.com/gleaner/20070214/business/business5.html
Given the nature of this matter, our ability to respond to speculation and allegations is constrained by the fact that the matter is before the courts.
However, we are compelled to take steps to safeguard our reputation by responding to the inaccuracies stated in the news reports that have been carried to date with the following facts:-
1. The Money Laundering Act requires banks to report to the local Financial Investigations Division of the Ministry of Finance and Planning all cash transactions equal to and above US$50,000 or the equivalent in any currency (known as "threshold transactions"). The six summonses served on our bank made no mention of a failure to report "suspicious transactions".
2. The six summonses were for failure to report threshold transactions. The transactions described in the summonses in question were deposits for approximately J$50 million or approximately US$871,000 in total. The news reports of the charges levied on the Bank for several different transactions ranging from US$20 million to a total of US$27 million are grossly inaccurate.
3. No employee of National Commercial Bank Jamaica Limited has been named in any of the summonses received.
We wish to strongly encourage fair, accurate and balanced reporting in this matter, which took place four years ago, as failure in this regard does not promote the interest of justice and will detract from the significant advances that National Commercial Bank Jamaica Limited has made since 2003, to improve its compliance reporting regime and to increase its ability to assist in the fight against money laundering, terrorist financing, fraud and other illegal activity.
http://www.jamaica-gleaner.com/gleaner/20070214/business/business5.html
on Friday, February 9, 2007
The Financial Investigative Division has charged the National Commercial Bank (NCB) with breaches of the Money Laundering Act after investigators discovered suspicious financial transactions in the account of accused drug dealer Norris 'Deedo' Nembhard.
The financial institution, represented by attorney Garth McBean, appeared at the Corporate Area Resident Magistrate's Court yesterday after being notified of the charges three days ago.
The bank was slapped with the charges after police received reports that major players in a drug cartel had recruited a worker at the bank to assist them in laundering cash allegedly accrued from drug running.
The police say the bank made no report of lodgments, withdrawals and transfers which were way above the financial threshold.
Allegations are that Nembhard lodged and withdrew US$27 million in several different transactions in 2003 without any of them being reported to the relevant authorities.
Under Jamaican financial law, any transaction over US$50,000 must be reported to the authorities. The penalty for failing to report each transaction could result in a fine of up to $400,000.
Nembhard, former police corporal Herbert 'Scarry' Henry, Robroy 'Spy' Williams, Vivian Dalley, Glenford Williams, Leebert Ramcharan, Colombian national Faustino Archibald, Dennis Petagay, and Adrian Armstrong a Montego Bay Cambio dealer, are now locked up at the New Horizon Remand Centre in Kingston after being ordered extradited by the local court on drug trafficking charges. All have appealed the extradition order.
Nembhard and Ramcharan were described by United States president George W Bush as drug kingpins in 2004.
http://www.jamaicaobserver.com/news/html/20070208T230000-0500_118918_OBS_NCB_CHARGED_WITH_BREACHES_OF_MONEY_LAUNDERING_ACT.asp
The financial institution, represented by attorney Garth McBean, appeared at the Corporate Area Resident Magistrate's Court yesterday after being notified of the charges three days ago.
The bank was slapped with the charges after police received reports that major players in a drug cartel had recruited a worker at the bank to assist them in laundering cash allegedly accrued from drug running.
The police say the bank made no report of lodgments, withdrawals and transfers which were way above the financial threshold.
Allegations are that Nembhard lodged and withdrew US$27 million in several different transactions in 2003 without any of them being reported to the relevant authorities.
Under Jamaican financial law, any transaction over US$50,000 must be reported to the authorities. The penalty for failing to report each transaction could result in a fine of up to $400,000.
Nembhard, former police corporal Herbert 'Scarry' Henry, Robroy 'Spy' Williams, Vivian Dalley, Glenford Williams, Leebert Ramcharan, Colombian national Faustino Archibald, Dennis Petagay, and Adrian Armstrong a Montego Bay Cambio dealer, are now locked up at the New Horizon Remand Centre in Kingston after being ordered extradited by the local court on drug trafficking charges. All have appealed the extradition order.
Nembhard and Ramcharan were described by United States president George W Bush as drug kingpins in 2004.
http://www.jamaicaobserver.com/news/html/20070208T230000-0500_118918_OBS_NCB_CHARGED_WITH_BREACHES_OF_MONEY_LAUNDERING_ACT.asp
on Friday, January 19, 2007
Friday, January 19, 2007
KINGSTON, Jamaica (JIS): The Jamaican House of Representatives this week approved a Resolution moved by Dr Omar Davies, Minister of Finance and Planning, to designate Insurance Brokers and Insurance Intermediaries as financial institutions for the purpose of the Money Laundering Act.
Davies pointed out that Jamaica was a signatory to the mutual evaluation agreement by the Caribbean Financial Action Task Force, which assesses, which member countries are compliant with various agreements to minimize the incidence of money laundering.
He added that in April 2005, Jamaica "underwent its mutual evaluation, because the way countries are assessed is that you agree to be examined by other members of the Financial Action Task Force".
"During that exercise, the framework for money laundering and combating financing of terrorism was examined, to determine whether the regime in Jamaica was consistent with the various recommendations laid down by the financial task force," said Davies.
The Minister said that the task force acknowledged that a "great deal of progress has been made by Jamaica towards its fulfillment of its international obligations, but there were certain areas where they could not testify to full compliance as there were additional measures that needed to be implemented".
He pointed out that one specific area which was identified and which could be corrected very quickly was the requirement that an anti money laundering legislation should apply to all financial institutions, "specifically insurance brokers and insurance intermediaries who are not covered by this legislation".
The Minister said that by putting Insurance Brokers and Insurance Intermediaries under the Money Laundering Act, it would "eliminate one additional deficiency, which will then seek to put Jamaica further on the road towards compliance with international regulation".
"As providers of financial services related to insurance, the omission places the insurance sector, which is regulated by the Financial Services Commission, in an unnecessary risky position of being used by brokers and intermediaries to facilitate the laundering of the proceeds of any money laundering activities," explained Davies.
http://www.caribbeannetnews.com/cgi-script/csArticles/articles/000052/005241.htm
KINGSTON, Jamaica (JIS): The Jamaican House of Representatives this week approved a Resolution moved by Dr Omar Davies, Minister of Finance and Planning, to designate Insurance Brokers and Insurance Intermediaries as financial institutions for the purpose of the Money Laundering Act.
Davies pointed out that Jamaica was a signatory to the mutual evaluation agreement by the Caribbean Financial Action Task Force, which assesses, which member countries are compliant with various agreements to minimize the incidence of money laundering.
He added that in April 2005, Jamaica "underwent its mutual evaluation, because the way countries are assessed is that you agree to be examined by other members of the Financial Action Task Force".
"During that exercise, the framework for money laundering and combating financing of terrorism was examined, to determine whether the regime in Jamaica was consistent with the various recommendations laid down by the financial task force," said Davies.
The Minister said that the task force acknowledged that a "great deal of progress has been made by Jamaica towards its fulfillment of its international obligations, but there were certain areas where they could not testify to full compliance as there were additional measures that needed to be implemented".
He pointed out that one specific area which was identified and which could be corrected very quickly was the requirement that an anti money laundering legislation should apply to all financial institutions, "specifically insurance brokers and insurance intermediaries who are not covered by this legislation".
The Minister said that by putting Insurance Brokers and Insurance Intermediaries under the Money Laundering Act, it would "eliminate one additional deficiency, which will then seek to put Jamaica further on the road towards compliance with international regulation".
"As providers of financial services related to insurance, the omission places the insurance sector, which is regulated by the Financial Services Commission, in an unnecessary risky position of being used by brokers and intermediaries to facilitate the laundering of the proceeds of any money laundering activities," explained Davies.
http://www.caribbeannetnews.com/cgi-script/csArticles/articles/000052/005241.htm
on Wednesday, January 10, 2007
Gregory A. Simms, former senior investigator at the Financial Services Commission, has been awarded anti-laundering credentials by the Association of Certified Anti-Money Laundering Specialists (ACAMS), the world's leading organisation of professionals in the anti-money laundering field.
The CAMS (Certified Anti-Money Laundering Specialist) designation is only awarded to professionals who successfully complete a rigorous examination, demonstrating their aptitude and expertise in anti-money laundering detection and enforcement.
About 2,000 people in the world have passed the CAMS examination, which is prepared by an independent testing company in collaboration with anti-money laundering experts around the globe.
International reputation
"I think the designation is useful for all regulators, in particular those in the government sector as they seek to protect the international reputation of their countries in a world where illegal financial gains can destroy the hard work of their countries," said Mr. Simms.
"Earning the CAMS credential is a significant achievement for professionals in the anti-money laundering detection and enforcement field because it will provide their employers and their business partners around the world with the assurance that they are working with someone with proven capabilities in this challenging field," said Geoffrey Chunowitz, executive director of ACAMS.
Mr. Simms holds a LLM in international law from the Patrice Lumumba University, Moscow, Russia, and a diploma in teaching from the Mico Teachers' College and has participated in a number of specialised training in the areas of securities regulation and investigating white collar crimes.
Mr. Simms, who now lives in Trinidad and Tobago, is married to Gail and is a Jamaica Football Federation Certified Level 1 Football Coach and is a former assistant general secretary and chairman of the competitions committee for the Kingston and St. Andrew Football Association.
ACAMS facts
Founded in 2001, ACAMS now has 3,700 members in over 100 countries. Since its founding, ACAMS has provided a global platform for career development and networking for leading professionals in the AML field. ACAMS gives members the insight, information and inspiration they need to protect their institutions against the threat of money laundering and terrorist financing and the tools to advance their skills and reach their career objectives
ACAMS also promotes the development and implementation of sound anti-money laundering policies and procedures.
http://www.jamaica-gleaner.com/gleaner/20070109/business/business1.html
The CAMS (Certified Anti-Money Laundering Specialist) designation is only awarded to professionals who successfully complete a rigorous examination, demonstrating their aptitude and expertise in anti-money laundering detection and enforcement.
About 2,000 people in the world have passed the CAMS examination, which is prepared by an independent testing company in collaboration with anti-money laundering experts around the globe.
International reputation
"I think the designation is useful for all regulators, in particular those in the government sector as they seek to protect the international reputation of their countries in a world where illegal financial gains can destroy the hard work of their countries," said Mr. Simms.
"Earning the CAMS credential is a significant achievement for professionals in the anti-money laundering detection and enforcement field because it will provide their employers and their business partners around the world with the assurance that they are working with someone with proven capabilities in this challenging field," said Geoffrey Chunowitz, executive director of ACAMS.
Mr. Simms holds a LLM in international law from the Patrice Lumumba University, Moscow, Russia, and a diploma in teaching from the Mico Teachers' College and has participated in a number of specialised training in the areas of securities regulation and investigating white collar crimes.
Mr. Simms, who now lives in Trinidad and Tobago, is married to Gail and is a Jamaica Football Federation Certified Level 1 Football Coach and is a former assistant general secretary and chairman of the competitions committee for the Kingston and St. Andrew Football Association.
ACAMS facts
Founded in 2001, ACAMS now has 3,700 members in over 100 countries. Since its founding, ACAMS has provided a global platform for career development and networking for leading professionals in the AML field. ACAMS gives members the insight, information and inspiration they need to protect their institutions against the threat of money laundering and terrorist financing and the tools to advance their skills and reach their career objectives
ACAMS also promotes the development and implementation of sound anti-money laundering policies and procedures.
http://www.jamaica-gleaner.com/gleaner/20070109/business/business1.html
on Friday, January 5, 2007
PHILIPSBURG--Nevis-born Coleen Novia Wattley (38) was found guilty by the Court of First Instance of having cashed no less than 51 false US postal money orders and travellers’ cheques at local banks and casinos between June and November 2006.
Her friend P.J.B. (40) of Jamaica, who allegedly had assisted her in the money laundering scheme, was acquitted for lack of convincing evidence.
Judge Rick Smid stated in his ruling, which was handed down recently, that he considered the Prosecutor’s case against Wattley proven, and sentenced her to a suspended prison sentence of one year with three years’ probation. She also will have to perform 240 hours of community service and will have to pay US $6,000 in damages to RBTT Bank.
Prosecutor Paul Mooij had asked the judge during the court hearing on December 12, 2006, for an 18-month prison sentence, 10 of which to be suspended, with three years’ probation and $6,000 in damages.
Wattley had also been convicted for forgery in August 2004 while she was working as a cashier at RBTT Bank. She told Judge Smid this time she had cashed the cheques for a friend in Spain she had met during chat sessions on the Internet. This friend had told her she had an online art store and was encountering problems with cashing gift cheques. Wattley decided to help her friend, stating she had had no idea the cheques were false.
Mooij said this scheme had links with Nigeria, a country that is notorious for all kinds of Internet schemes. He said Wattley had become involved in this case because she was in deep financial problems due to a previous conviction requiring her to pay damages to her former employer.
Attorney-at-law Monique Hofman had stated her client was the victim of a professional scheme and had only wanted to help.
The Prosecutor was of the opinion that P.J.B. also should have known that something was wrong when she cashed 11 cheques at different locations on behalf of her friend Wattley. For these alleged crimes he considered a suspended sentence of six months with two years’ probation, 240 hours of community service and a $500 fine to be appropriate.
Attorney P.E. van Zon had requested acquittal for P.J.B., who he said had not been aware of the ins and outs of the operation.
The judge said P.J.B. had acted rashly in cashing the cheques for her friend, but he did not consider money laundering convincingly proven. He therefore decided to acquit her.
http://www.thedailyherald.com/news/daily/j193/Money193.html
Her friend P.J.B. (40) of Jamaica, who allegedly had assisted her in the money laundering scheme, was acquitted for lack of convincing evidence.
Judge Rick Smid stated in his ruling, which was handed down recently, that he considered the Prosecutor’s case against Wattley proven, and sentenced her to a suspended prison sentence of one year with three years’ probation. She also will have to perform 240 hours of community service and will have to pay US $6,000 in damages to RBTT Bank.
Prosecutor Paul Mooij had asked the judge during the court hearing on December 12, 2006, for an 18-month prison sentence, 10 of which to be suspended, with three years’ probation and $6,000 in damages.
Wattley had also been convicted for forgery in August 2004 while she was working as a cashier at RBTT Bank. She told Judge Smid this time she had cashed the cheques for a friend in Spain she had met during chat sessions on the Internet. This friend had told her she had an online art store and was encountering problems with cashing gift cheques. Wattley decided to help her friend, stating she had had no idea the cheques were false.
Mooij said this scheme had links with Nigeria, a country that is notorious for all kinds of Internet schemes. He said Wattley had become involved in this case because she was in deep financial problems due to a previous conviction requiring her to pay damages to her former employer.
Attorney-at-law Monique Hofman had stated her client was the victim of a professional scheme and had only wanted to help.
The Prosecutor was of the opinion that P.J.B. also should have known that something was wrong when she cashed 11 cheques at different locations on behalf of her friend Wattley. For these alleged crimes he considered a suspended sentence of six months with two years’ probation, 240 hours of community service and a $500 fine to be appropriate.
Attorney P.E. van Zon had requested acquittal for P.J.B., who he said had not been aware of the ins and outs of the operation.
The judge said P.J.B. had acted rashly in cashing the cheques for her friend, but he did not consider money laundering convincingly proven. He therefore decided to acquit her.
http://www.thedailyherald.com/news/daily/j193/Money193.html
on Wednesday, December 20, 2006
TANEISHA LEWIS, Observer staff reporter
Saturday, December 16, 2006
THE Financial Investigation Division (FID) says although money laundering is a problem in Jamaica, it cannot adequately tackle the problem until the Proceeds of Crime Act (POCA) is passed.
The Act is expected to be brought before the House of Parliament for debate next year.
Presently, people found guilty of money laundering are prosecuted under the Money Laundering Act (MLA) of 1998. However, the MLA will be repealed once the POCA is passed.
Within the current legislative network allegations of money laundering are investigated, but there is very little that can be done except for taxing the people, said Christine Chambers, chief technical director at the FID.
"Yes, [money laundering is a big problem in Jamaica], but until the POCA is enacted, we cannot properly tackle the problem," Chambers said.
"The offences are mainly fraud and larceny. If there is a nexus with a drug-related offence, the person is charged and these are before the court," she added.
Currently, there are five money-laundering cases before the courts. In Jamaica, money laundering is conducted under the guise of real estate purchases, construction, used car dealership, trade, extortion and smuggling.
Last year, only seven cases of money laundering were actually brought before the courts for a ruling since 2001. In fact, there have only been only two convictions for money laundering since the establishment of the Financial Investigation Division (FID) in the police force in 2002.
According to the FID, so far this year eight people have been convicted of breaches of the Money Laundering Act, compared to five people last year. But Chambers explained that even though the numbers are small, the eight convicted people were responsible for 20 counts of money laundering.
Currently, the Money Laundering Act requires record keeping and reporting for financial institutions on all currency transactions over US$10,000. Exchange bureaus, or cambios, have a reporting threshold of US$50,000.
Between January and September of this year, the FID received 18,311 suspicious transaction reports (STR), 46,765 threshold transaction reports (TTR) and 30 cash transaction reports. Compared to last year, there was a significant increase in the number of STRs by 2164.
However, the number of TTRs decreased from 52,310. CTRs also saw a significant dip from 114. In 2004, 49,754 money-laundering reports on transactions regarded as being on the threshold by financial institutions were filed, but only 12 of the 231 cases deemed suspicious were investigated for money laundering.
A person commits a money-laundering offence if he or she engages in a transaction that involves criminal property; conceals, disguises disposes of or brings into Jamaica any such property or converts transfers or removes any such property from Jamaica.
Provisions pertaining to money laundering will be included in the POCA, which states that it is illegal to engage in a transaction involving criminal property. Criminal property is referred to as property which is a benefit from criminal conduct.
Chas Roy-Chowdhury, head of taxation at the Association for Chartered Certified Accountants, recently noted at an anti-money-laundering seminar that worldwide, money laundering could amount to between two and five per cent of the global GDP, which is approximately $590 billion to $1.5 trillion.
He said possible warning signs for money-laundering activity include:
. Unusually large deposits of cash made by an individual or company whose affairs would normally generate deposits by cheque or banker's draft.
. Substantial increases in cash deposits without apparent cause
. Customers depositing large numbers of smaller cash amounts which together make up a substantial sum
. Reluctance by a customer to provide routine information when opening an account; providing information which is difficult or expensive to verify
. Large withdrawals from a hitherto dormant/inactive account.
http://www.jamaicaobserver.com/news/html/20061215T220000-0500_116699_OBS_FID_CAN_T__PROPERLY_TACKLE__MONEY_LAUNDERING_WITHOUT_POCA.asp
Saturday, December 16, 2006
THE Financial Investigation Division (FID) says although money laundering is a problem in Jamaica, it cannot adequately tackle the problem until the Proceeds of Crime Act (POCA) is passed.
The Act is expected to be brought before the House of Parliament for debate next year.
Presently, people found guilty of money laundering are prosecuted under the Money Laundering Act (MLA) of 1998. However, the MLA will be repealed once the POCA is passed.
Within the current legislative network allegations of money laundering are investigated, but there is very little that can be done except for taxing the people, said Christine Chambers, chief technical director at the FID.
"Yes, [money laundering is a big problem in Jamaica], but until the POCA is enacted, we cannot properly tackle the problem," Chambers said.
"The offences are mainly fraud and larceny. If there is a nexus with a drug-related offence, the person is charged and these are before the court," she added.
Currently, there are five money-laundering cases before the courts. In Jamaica, money laundering is conducted under the guise of real estate purchases, construction, used car dealership, trade, extortion and smuggling.
Last year, only seven cases of money laundering were actually brought before the courts for a ruling since 2001. In fact, there have only been only two convictions for money laundering since the establishment of the Financial Investigation Division (FID) in the police force in 2002.
According to the FID, so far this year eight people have been convicted of breaches of the Money Laundering Act, compared to five people last year. But Chambers explained that even though the numbers are small, the eight convicted people were responsible for 20 counts of money laundering.
Currently, the Money Laundering Act requires record keeping and reporting for financial institutions on all currency transactions over US$10,000. Exchange bureaus, or cambios, have a reporting threshold of US$50,000.
Between January and September of this year, the FID received 18,311 suspicious transaction reports (STR), 46,765 threshold transaction reports (TTR) and 30 cash transaction reports. Compared to last year, there was a significant increase in the number of STRs by 2164.
However, the number of TTRs decreased from 52,310. CTRs also saw a significant dip from 114. In 2004, 49,754 money-laundering reports on transactions regarded as being on the threshold by financial institutions were filed, but only 12 of the 231 cases deemed suspicious were investigated for money laundering.
A person commits a money-laundering offence if he or she engages in a transaction that involves criminal property; conceals, disguises disposes of or brings into Jamaica any such property or converts transfers or removes any such property from Jamaica.
Provisions pertaining to money laundering will be included in the POCA, which states that it is illegal to engage in a transaction involving criminal property. Criminal property is referred to as property which is a benefit from criminal conduct.
Chas Roy-Chowdhury, head of taxation at the Association for Chartered Certified Accountants, recently noted at an anti-money-laundering seminar that worldwide, money laundering could amount to between two and five per cent of the global GDP, which is approximately $590 billion to $1.5 trillion.
He said possible warning signs for money-laundering activity include:
. Unusually large deposits of cash made by an individual or company whose affairs would normally generate deposits by cheque or banker's draft.
. Substantial increases in cash deposits without apparent cause
. Customers depositing large numbers of smaller cash amounts which together make up a substantial sum
. Reluctance by a customer to provide routine information when opening an account; providing information which is difficult or expensive to verify
. Large withdrawals from a hitherto dormant/inactive account.
http://www.jamaicaobserver.com/news/html/20061215T220000-0500_116699_OBS_FID_CAN_T__PROPERLY_TACKLE__MONEY_LAUNDERING_WITHOUT_POCA.asp
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