Financial Investigations Division Act Amended

The Financial Investigations Division Act has been amended to make clearer, provision regarding the circumstances in which the Financial Investigations Division (FID) may give information to or receive information.

This information relates to other public bodies in Jamaica or a foreign financial intelligence department or association of such departments.

The Bill – Financial Investigations Division (Amendment) Act – was passed in the House of Representatives on January 20.

In her remarks, Minister of Finance and the Public Service, Hon. Fayval Williams, said the statute establishing the FID seeks to incorporate the necessary functions that will facilitate both local financial crime investigations as well as cooperation with other countries.

“The responsibilities of the division include investigations, collection of information and maintenance of intelligence database, management of seized, restrained and forfeited properties, and collaboration with local and foreign law-enforcement agencies. The FID is also the national centre for the receipt and analysis of transaction reports and other relevant information. They’re also the national centre for the dissemination of the results of that analysis,” Mrs. Williams said.

The Minister informed that the FID was admitted into membership of the Egmont Group in 2014.

She explained that the Egmont Group, which was established in 1995, facilitates international collaboration and cooperation between financial intelligence units (FIUs), to combat money laundering, financing of terrorism, proliferation financing and predicate offences.

She said the goal of the Egmont Group is to provide a forum for the financial intelligence units around the world to obtain support, including the expansion and systematic international cooperation in the reciprocal exchange of information; and fostering better and secure communication among financial intelligence units through the application of technology.

Also included are fostering increased coordination and support among the operational divisions of member FIUs; promoting the operational autonomy of FIUs; and promoting the establishment of FIUs, in conjunction with jurisdictions with an anti-money laundering (AML), counter-terrorist financing, counter-proliferation financing programme in place, or in areas with a programme in the early stages of development.

“As you may be aware, in 2017, the Financial Action Task Force/Caribbean Financial Action Task Force, approved the Mutual Evaluation Report (MER) for which Jamaica was rated partially compliant, for recommendation 40, which deals with international cooperation,” Mrs. Williams said.

“A low Mutual Evaluation Report rating serves as a trigger for a close review by the Egmont Group. The Egmont Group identified areas of deficiency in the Financial Investigations Division Act, which they interpreted as the division not being operationally independent and autonomous. This Bill seeks to address the issues relating to independence and to ensure that the FID complies with the Financial Action Task Force standards and principles of Egmont, thus maintaining membership,” she added.

The Minister further stated that the amendment is also pertinent to ensure that Jamaica is better prepared for the fifth round of the Financial Action Task Force Mutual Evaluation, as international cooperation is one of the focus areas to test for effectiveness.