+ Jamaica Money Remitters Association Assessing the Impact of the Lottery Scam on the Remittance Sector Lottery Scam Forum Terra Nova All Suites Hotel November 7, 2012

+ Overview Remittance businesses targeted because of quick and convenient services Scams have resulted in suspension of services at a number of locations over the past two years. Most recent in August 2012.

+ Horizontal Growth of Lottery Scam Scammers now routing funds through postal and courier services Victims purchase and ship electronics & appliances which are then sold by scammers for cash

+ Impact on Jamaicas Reputation Efforts to eradicate the scam need strengthening Scam makes Jamaica unattractive to Diaspora and potential international investors Tourism threatened by violent crimes directly linked to scam

+ What the JMRA is Doing Supports national initiatives to fight the lottery scam Facilitates dialogue with members & key stakeholders; creates an environment where strategies are shared Lobby for implementation of legislation Press for stronger systems to detect fraud

+ Impact on Remittance Companies Increased expenditure on human resources and technology to improve scrutiny of transfers Continual, costly compliance/operations procedure adjustments which result in delays for customers Stricter compliance procedures compromise customer service

+ Impact on Remittance Companies contd Stricter compliance measures anger customers and scammers who sometimes respond violently to frontline employees Increased costs to protect employees and property and to provide counselling Increased overall costs on security, compliance, human resource affect bottom line INCREASED COSTS

+ Impact on Remittance Companies contd Reduced profits- which may discourage operators and result in businesses winding up operations Exposes remittance agencies to hefty fines. Closure of remittance outlets could worsen the impact on other businesses, reduce competition from which customers benefit, and lead to the re-emergence of informal markets

+ Social Dependence on Remittance Companies Quick, safe and convenient access to money transfers Three out four people use money transfer agents only Some 34 percent of adults do not have bank accounts Remittance used to purchase food; access healthcare; pay utility bills; finance education Source: BOJ 2010 survey on Remittances to Jamaica Money Transfer Methods Used

+ Where Do We Go From Here? Fast track legislation, particularly the implementation of the Evidence Act to facilitate victims testimony by video Make the lottery scam/ advance fee payments a crime with its own consequences under law Implement an Integrated identification verification system

+ The End