FATF status

Jamaica is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 28 June 2024

The FATF welcomes Jamaica’s significant progress in improving its AML/CFT regime. Jamaica strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2020 by, (1) developing a more comprehensive understanding of its ML/TF risk; (2) including all FIs and DNFBPs in the AML/CFT regime and implementing adequate risk based supervision in all sectors; (3) taking appropriate measures to prevent legal persons and arrangements from being misused for criminal purposes, and ensuring that accurate and up to date basic and beneficial ownership information is available on a timely basis; (4) taking proper measures to increase ML investigations and prosecutions, in line with the country’s risk profile, and increasing the use of financial intelligence in ML investigations; (5) implementing targeted financial sanctions for terrorist financing without delay; and (6) implementing a risk based approach for supervision of its NPO sector to prevent abuse for TF purposes. Jamaica is therefore no longer subject to the FATF’s increased monitoring process.

Jamaica should continue to work with CFATF to sustain its improvements in its AML/CFT system.

European Commission list of countries with strategic deficiencies in their AML/CFT regimes

Jamaica is on the EU Commission list of High Risk jurisdictions which have been identified as having strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes that pose significant threats to the financial system of the European Union (‘high-risk third countries’).

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Jamaica was undertaken in December 2023. According to that Evaluation, Jamaica was deemed Compliant for 10 and Largely Compliant for 27 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 1 of the Effectiveness ratings.

Jamaican law imposes criminal penalties for corruption among public officials, yet evidence suggests that corrupt practices persist, causing significant public concern. The Integrity Commission, established in 2017, consolidates anti-corruption efforts but struggles with limited prosecutorial success, particularly in high-level cases. Corruption is linked to organized crime and contributes to Jamaica's high crime rate and economic challenges, as reflected in its low score on the Corruption Perception Index.

Jamaica's economy has shown resilience and growth, with a 2.6 percent increase in output in 2023, largely driven by a robust recovery in tourism. The government has implemented structural reforms to reduce debt and improve infrastructure, resulting in a favorable environment for foreign direct investment (FDI), which rose by nearly 13 percent to USD 360 million in 2022, primarily supported by tourism and investments in logistics and agriculture.

Jamaica's investment climate is bolstered by a stable macroeconomic environment and a government that actively promotes foreign direct investment (FDI) across all sectors. The country has implemented reforms to enhance its legal framework, improve infrastructure, and develop human capital, resulting in a nearly 13% increase in FDI flows in 2022, primarily driven by tourism and supported by incentives such as tax relief and customs duty exemptions. Despite challenges like port security deficiencies and customs delays, Jamaica remains an attractive destination for investors due to its open policies and lack of restrictions on foreign ownership.