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 there is evidence of ongoing corrupt practices, leading to public concern and criticism of the government's slow response to tackle the issue. The Integrity Commission, established in 2017, consolidates anti-corruption efforts but has limited prosecutorial powers, resulting in few successful high-level prosecutions. Corruption is linked to organized crime and is a significant factor in 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, expanding by 2.6 percent in 2023, largely driven by a robust recovery in tourism, which saw 4.1 million visitors in 2023. The government has implemented structural reforms to reduce debt and improve the investment climate, attracting nearly USD 360 million in foreign direct investment in 2022, with significant contributions from the tourism, information technology, and agriculture sectors.

Jamaica's investment climate is bolstered by a stable macroeconomic environment and a government committed to attracting foreign direct investment (FDI) through various reforms and incentives. In 2022, FDI inflows rose by nearly 13 percent, primarily driven by tourism, with significant contributions from Spain and Mexico, while the government continues to enhance its legal framework and infrastructure to facilitate business operations. Despite challenges such as port security issues and customs delays, Jamaica remains an appealing destination for investors due to its open policies towards foreign ownership and a supportive regulatory environment.