Senators Approve Another Order to Combat Money Laundering

The Government continues to strengthen and modernise legislation to combat money laundering and terrorist financing.

Members of the Senate on Friday (January 28) approved the Terrorism Prevention (Designated Reporting Entity) (Trust and Corporate Services Providers) Order, 2022.

Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, who brought the Order before the Senate, said the designation aims to strengthen the country’s financial and non-financial systems, while making them more robust and transparent.

She said it also signals Jamaica’s compliance with set international obligations and practices.

Senator Johnson Smith said great emphasis has been placed on the international community in the fight against the twin evils of money laundering and the financing of terrorism.

She explained that money laundering is essentially the process of hiding the illegal origins of funds, while terrorist financing is the gathering or the provision of funds for terrorist purposes.

The Minister said the problem of money laundering and terrorist financing cuts across borders, as criminals exploit loopholes in domestic systems to try to move their funds through or to jurisdictions with weak or ineffective legal and institutional frameworks.

“So, strengthening our frameworks to protect and prevent these activities, therefore, plays the dual purpose of protecting us nationally and ensuring that we play our part in the global fight against these scourges,” she explained.

Senator Johnson Smith pointed out that among the goals of the Anti-Money Laundering and Counter Financing of Terrorism Framework are protecting the integrity and stability of the international financial system; cutting off the resources available to terrorists; and making it more difficult for those engaged in crime to profit from their criminal activities.

She said Jamaica’s compliance is important, not only to businesses and the business community but to a wide cross section of users at every level of banking services.

The Terrorism Prevention Act is a critical legislative tool in Jamaica’s fight against Money Laundering and the Financing of Terrorism regime.

Senator Johnson Smith explained that Section 14 of the Terrorism Prevention Act provides that an entity will be classified as a listed entity if it’s designated as a terrorist entity by the UN Security Council or if the Director of Public Prosecutions (DPP) has reasonable grounds to believe that the entity knowingly committed or participated in the commission of a terrorism offence or is knowingly acting on behalf of or at the direction of such an entity so designated by the UN.

Additionally, she said that Section 15 of the Terrorism Prevention Act provides that certain entities – that is, the reporting entity, and they are at the core of this Order – must periodically report whether they are in possession or control of property owned and controlled by or on behalf of a listed entity.

“Reporting entities must also notify the Financial Investigations Division (FID) –the designated regulator – where they suspect that a transaction involves property that is connected with or intended to be used in the commission of a terrorism offence or is involved with or for the benefit of a listed entity or terrorist group,” she said.

Senator Johnson Smith said the Terrorism Prevention (Designated Reporting Entity) (Trust and Corporate Services Providers) Order; the Proceeds of Crime (Designated Non-Financial Institution) (Trust and Corporate Services Providers) Order, 2022; and the Regulations forthcoming under the Trust and Corporate Services Providers Act will facilitate the effective supervision of trusts and corporate service providers operating in Jamaica.

She noted that the Minister of Finance continues to lead the drive to complete various initiatives as part of the action plan and the measures being pursued to strengthen Jamaica’s financial system, disrupt the financing of illicit activities globally and more generally ensure compliance with applicable international standards.

“In recent months as we have continued an assessment process internally and administratively with the Financial Action Task Force (FATF) and Caribbean Financial Action Task Force (CFATF), Jamaica’s efforts have resulted in the country being positively reassessed in respect of several deficiencies identified in our last mutual evaluation report. We still have a ways to go, but the Minister of Finance continues to lead the drive in that direction,” the Minister said.

Supporting the legislation, Leader of Opposition Business, Senator Peter Bunting, said it continues the process by the Government to strengthen and upgrade laws and regulations related to money laundering and terrorist financing.