Amina Maknoon Senior Director, Investigation & Enforcement Financial Services Commission

Introduction  Jamaica:  Financial Crisis mid 1990’s  Collapse of life insurance industry and most of the banking sector  Government of Jamaica had to intervene to assist several financial institutions, some of them "large”. 5 life insurance companies 1 general insurance company 11 commercial banks and merchant banks

The Financial Services Commission  Financial Services Commission Act  Creation of the Financial Services Commission (FSC)

WHO IS THE FSC?  Self-financing regulatory body  Oversees the regulation of Jamaica’s insurance, private pension and securities industries.  The FSC is charged with supervising its licensees under the following legislation: The Insurance Act & Regulations The Securities Act & Regulations The Pensions (Superannuation Funds and Retirement Schemes) Act & Regulations.

What does the FSC do? – Prudential Supervision  Overarching mandate is the protection of customers of financial services  Prudential supervision; focusing on solvency, the quality of internal controls, risk management and corporate governance within regulated institutions.  Essentially, taking steps to mitigate against the failure of such institutions

What does the FSC do? – Conduct Supervision  Ensure that appropriate standards of conduct and performance are maintained in the financial institutions it regulates  Wide ranging powers to supervise, investigate and sanction entities falling under its jurisdiction. Commonly referred to as the ‘conduct’ or ‘enforcement’ arm of the FSC

Measures to mitigate against fraud, theft or money laundering  Important aspect of ensuring that financial institutions conduct themselves in the appropriate manner for the protection of customers  FSC implements “measures designed to reduce the possibility of a prescribed financial institution being used for any purpose connected with an offence involving fraud, theft or money laundering.” - Section 6(2)(f) of the FSC Act

Money Laundering and Terrorism Financing and the Financial Sector  Historically: cash hoarding was a prominent money laundering practice  With the implementation of effective anti-money laundering controls, it was predicted that criminals would attempt to use the country’s financial system to launder their wealth

Financial Sector  Bank of Jamaica and the Financial Services Commission designated as the Competent Authorities for the financial sector.  Financial institutions in Jamaica, monitored by a robust supervisory regime by the country’s two financial regulators, have implemented adequate anti-money laundering programmes, which served to deter the use of the country’s financial institutions by money launderers

What does being a Competent Authority mean? ADVISING AND SUPERVISING - The Proceeds of Crime Act POCA and Regulations - The Terrorism Prevention Act TPA and Regulations

FSC - ADVISORY ROLE  Sensitisation and awareness building of Licensees and Customers of Financial Services on their obligations under the POCA and TPA.  Guidelines on Anti-Money Laundering and the Counter-Financing of Terrorism  Advisories, bulletins and listings  Meetings, and public forums

FSC - SUPERVISORY ROLE  Collaborations with FID, other competent authorities, and other government departments such as the Ministry of Foreign Affaris and law enforcement agencies such as the Major Organised Crime Agency (MOCA) in order to obtain and share information about ML and TF risks that exist on the island and, more specifically, in the financial sector which it regulates and it uses this intelligence to focus its investigations.  Monitoring of its licensees’compliance with the POCA and TPA through desk based examinations and on site examinations which involve a review of the policies and procedures which have been implemented by the financial institutions to assess whether they are compliant with the requirements under those Acts  Acts on tips from members of the public and Whistleblowers within entities

Financial Sector  MISSION:  A Financial Sector in which the risks of money laundering and terrorism financing have been successfully mitigated

Conclusion Anti- Money Laundering and Counter Terrorism Financing Affects YOU!

Thank you! Amina Maknoon Senior Director Investigation & Enforcement Financial Services Commission Barbados Ave PO Box 325 Kingston 5 Jamaica, W.I. Tel: (876) Fax: (876)