Jamaica Fully or Partially Compliant with 37 of 40 FATF Recommendations

Jamaica is now either fully or partially compliant with 37 of the Financial Action Task Force (FATF) 40 Recommendations.

The recommendations constitute the international standards by which jurisdictions’ preventative measures to combat the risks posed by criminals to launder the proceeds of crime and finance terrorism and proliferation of weapons of mass destruction are assessed.

Providing the update in the House of Representatives on Tuesday (December 19), Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said this progress in the country’s Anti-Money Laundering (AML)/Counter-Terrorism Financing (CFT) legislative framework “is critically important for Jamaica and Jamaican citizens as we wage a multiple decade-long struggle with organised crime”.

Jamaica’s fourth Round Mutual Evaluation, conducted in 2015 by the Caribbean Financial Action Task Force (CFATF) and published in 2017, concluded that the country was compliant or largely compliant in only 17 of the FATF’s 40 recommendations.

Since then, Jamaica has applied for re-rating of the assessment of its compliance with the recommendations on three occasions – 2020, 2022 and 2023.

“With the 2023 re-rating, in aggregate, Jamaica’s performance has now resulted in a total of 20 recommendations being upgraded to ‘Compliant’ or ‘Largely Compliant’ since the 2015 mutual evaluation,” Dr. Clarke informed.

Jamaica and Trinidad and Tobago are now the only two countries in the FATF global network that are compliant with Recommendation 24.

Additionally, Jamaica is the only country in the global network, to date, to be compliant with both Recommendations 24 and 25 (Transparency and Beneficial Ownership of Legal Arrangements), and the country has been elected to the Deputy Chairmanship of the CFATF.

Dr. Clarke said the significant progress that has been made “required the amendment of many laws and the passage of new ones in addition to the passage of many pieces of legislation, amendments, and new regulations, and this required the resolve of this Administration and this Parliament”.
“As such, on behalf of all Jamaicans, I acknowledge the support of my parliamentary and cabinet colleagues,” the Minister stated.

Dr. Clarke urged that with these “encouraging results”, Jamaica now has to quickly address the three remaining FATF recommendations with which the country is partially compliant.

“It is imperative that Jamaica swiftly addresses these three remaining pieces of legislation, as the window for getting them in place is very narrow. Jamaica’s fifth Round of Mutual Evaluation is scheduled for mid-2026. However, the date for submitting its self-assessment of its legal framework against the FATF 40 Recommendations (Technical Compliance Template) is December 2025,” he informed.

An important requirement for the legislation being submitted for review is that it should have been in force for at least six months, indicating the need for proper implementation of the law.

This means Jamaica must complete its AML/CFT legislative agenda by March 2025, at the very latest.

“This progress is also important to return Jamaica to compliance with international standards on AML/CFT, so that international counterparts are not required to engage in enhanced due diligence when conducting business with Jamaica,” the Minister stated.

Meanwhile, Dr. Clarke highlighted Jamaica’s placement under “increased monitoring and follow-up” by FATF, otherwise known as the grey listing, and the 13-point Action Plan to address deficiencies to which the country had committed.

He updated that only one area remains outstanding, which is demonstrating the effective implementation of Jamaica’s framework for the Transparency and Beneficial Ownership of Legal Persons.

“Given the work being undertaken by the Companies Office of Jamaica and its parent Ministry, we are optimistic that Jamaica will clear the final hurdle by February 2024,” Dr. Clarke said.

Completion of the action Plan is a prerequisite for Jamaica to apply to exit FATF’s increased monitoring, which includes an onsite visit by the Task Force’s Joint Group to confirm the sustainability of the measures taken under the Action Plan to enhance the country’s AML/CFT regime.