Gov’t Rallies Stakeholder Support to Combat Multibillion- Dollar Illicit Trade

With illicit trade estimated to cost Jamaica more than J$10 billion in lost tax revenue annually, Deputy Prime Minister and Minister of National Security, Hon. Dr. Horace Chang, is urging stakeholders, including private-sector interests, to partner with the Government to counter this threat.

He was speaking during the Jamaica Chamber of Commerce (JCC) inaugural Anti-Illicit Trade Forum at the AC Hotel by Marriott Kingston on Wednesday (April 30).

Dr. Chang said illicit trade represents one of the most pervasive threats to global security and economic stability in the modern world.

He cited a study conducted by the Organization for Economic Cooperation and Development (OECD), which indicates that counterfeit and pirated goods account for about 3.3 per cent of global trade or approximately US$500 billion annually.

Dr. Chang noted that consequent on its strategic location, Jamaica faces significant challenges in combatting illicit trade at its borders, leading to not just loss of revenue but other negative implications.

“For Jamaica, the consequences extend far beyond economic losses. They continue to undermine public health, threaten national security, and erode the very foundation of legitimate commerce. And in damaging commerce, it damages the growth of our economy and denies the Government significant revenue,” the Minister pointed out.

While noting that illicit trade in Jamaica has surged in recent years, Dr. Chang said increased collaboration amongst relevant organisations, such as the Jamaica Customs Agency (JCA), the police, and entities engaged in border control, has yielded significant gains in tackling the problem.

“Between 2016 and 2024, the Intellectual Property Unit of C-TOC (Counter-Terrorism and Organised Crime Investigation Branch) seized counterfeit goods valued at approximately J$1billion,” Dr. Chang stated.

He said despite these successes, there are still areas of concern, including the rise of trade-based money laundering – the process of disguising the origins of illicit funds through trade transactions – often by manipulating the price, quantity or quality of goods, hence putting legitimate business at risk.

“In Jamaica we are seeing clear signs of this nexus. Criminal organisations are increasingly using trade as a cover to move valuable goods across borders, supporting goods from high-end liquor, used vehicles, high-end electronics [to] beauty products, pharmaceuticals [and] top-shelf liquors, which are purchased with proceeds from illicit activities,’ Dr. Chang informed.

He noted that these goods allow criminal actors to out-compete lawful businesses and integrate themselves into the legal economy, in addition to carrying out money laundering.

“It is for this reason that Jamaica’s ongoing national risk assessment by the security teams includes a dedicated focus on trade-based money laundering to identify, quantify, and mitigate exposure to trade-based laundering,” the Minister noted.

Dr. Chang lamented that persistent illicit trading of goods deters both domestic and international investment.

He emphasised the important security role that agencies like the JCA and Jamaica Defence Force (JDF) play in maintaining a strong border control system.

“Since Customs have gotten more deeply involved in non-intrusive inspection, we have been apprehending a significant amount of contraband goods, including firearms, which have seen a significant increase in the last few months,” Dr. Chang indicated.

In his remarks, Head of C-TOC, Assistant Commissioner of Police (ACP), Dr. Anthony McLaughlin, underscored the importance of collaboration in tackling illicit trade, which he noted, often funds gang activity.

“A lot of these monies in Jamaica, when you look at some of the counterfeit products, go towards funding criminal activities. It’s one of the means by which gangs get their finances,” he indicated.

Dr. McLaughlin also noted that some illicitly traded goods utilise sub-standard materials or ingredients in their manufacturing that could lead to health risks for consumers.

He highlighted illicit male sexual enhancement tablets, being sold across the island, as a product of concern.

“They are plentiful out there. We do not know the composition of those tablets, whether or not the right quantity of the different ingredients are put in them. But… men gravitate to them and, in many instances… they harm themselves. So, again, we appeal to persons not to purchase these things on the road,” ACP McLaughlin said.

Meanwhile, JCC President, Phillip Ramson, reiterated that the impact of illicit trading is far-reaching and can have significant implications for public safety.

“Illicit trade is often a topic that flies under the radar. It’s rarely spoken [of] until you see a headline about a major drug bust or a seizure of illicit goods… but this issue goes much deeper. Whether it involves counterfeit products, smuggling alcohol or tobacco, substandard pharmaceuticals, pirated goods, or illegal fuel, this impact is far-reaching. Legitimate businesses suffer, the Government loses vital revenue, and public safety is compromised,” he outlined.

The JCC President commended the Ministry of National Security for its ongoing efforts to tackle the issue, citing recent increased investments in technology and law enforcement.

Mr. Ramson expressed the hope that greater investments will be made in the area and that heightened public awareness will be brought to the issue.

The JCC Anti-Illicit Trade Forum was held under the theme ‘Combatting Illicit Trade in Jamaica: A Multi-Stakeholder Approach’.