Gov’t Committed to Strengthening Jamaica’s Financial Framework

Minister of Education, Skills, Youth and Information, Senator Dr. the Hon. Dana Morris Dixon, says the Government is committed to strengthening the country’s financial regulatory framework to safeguard citizen’s interests and ensure full compliance with global standards.

“Financial regulation is not merely technical, it is at its core, a commitment to safeguarding the hard-earned monies of ordinary Jamaicans,” she said, noting that it is also about “protecting the reputation of our financial sector and building a foundation for sustainable economic growth and for the economic future of Jamaica”.

“I believe we must remain focused on putting in place a framework that will inspire investor confidence and better protect the people of Jamaica,” she added.

Dr. Morris Dixon was contributing to debate on the Financial Services Commission (Amendment) Act, 2024 in the Senate on Friday (Nov. 1).

The Bill seeks to address deficiencies in existing laws to fight money laundering and ensure compliance with international anti-money laundering standards.

Dr. Morris Dixon noted that the legislation represents an essential step in Jamaica’s ongoing efforts to modernise and strengthen the country’s regulatory framework to respond to local needs and ensure that the country’s systems are on par with international standards and best practices.

“These amendments we see here today are only a step towards building capacity within the existing framework, while simultaneously working for a longer-term more robust regulatory structure for Jamaica,” she said.

In noting the Administration’s commitment to ensuring the stability of the financial system, she cited the tireless work done to implement policies and laws, which resulted in the country being removed from the Financial Action Task Force’s (FATF) Grey List this year.

The Grey List of countries are assessed as having strategic deficiencies in their Anti-Money Laundering/Countering the Financing of Terrorism (“AML/CFT”) Regimes.

“I know that a few years ago, many individuals were concerned that Jamaica would in fact be blacklisted but…we got an amazing report from the Financial Action Task Force detailing the work of Jamaica, also saying that in many of the areas, that Jamaica is outperforming the rest of the world in our regulatory framework,” the Minister stated.

She cited the Twin Peaks Model of Financial Regulation and Supervision as one measure in enhancing the system of supervision and regulation of the country’s financial sector.

Under the twin peaks model, the Bank of Jamaica will assume full responsibility for prudential supervision of all bank and non-bank financial institutions.

At the same time, the Financial Services Commission (FSC) will be transformed into a new regulatory entity that will supervise all bank and non-bank financial institutions from the perspective of market conduct and the protection of consumers of financial services.

Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, in piloting the Bill, said the promulgation of the legislation allows Jamaica to have another regulatory tool to enhance financial sector stability and offer a greater level of protection for financial consumers.

“The amendments to the Financial Services Commission Act, consequential amendments to the Pensions Superannuation Funds and Retirement Schemes Insurance and Securities Act, will further empower the FSC to conduct group-wide supervision and the promulgation of a new set of regulations to govern the FSC’s group-wide supervisory framework,” he said.

Senators Professor Floyd Morris, Ransford Braham, Lambert Brown, and Donna Scott Mottley also contributed to debate on the legislation, which was passed without amendment.