Jamaica’s removal from FATF grey list said likely to free up foreign financing
Published:Wednesday | July 3, 2024 | 12:07 AM
Jamaica’s removal from the grey list of the Financial Action Task Force, FATF, will make the country more favourable for international investment, and could lead to financing of projects at better interest rates.
This is the view of the Private Sector Organisation of Jamaica, PSOJ, and the Jamaica Bankers Association, JBA, as both groups welcomed Jamaica’s removal last week from the list of countries with strategic deficiencies in their AML/CFT frameworks, short for anti-money laundering/counter-financing of terrorism.
PSOJ President Metry Seaga said Jamaica being grey-listed since 2020 made international financiers wary of buying into projects here.
Being off the list “is good for investment, because real investors coming into an island like Jamaica want to make sure that there are no anomalies in the international community with our country. Being on the grey list is one such anomaly, so getting off of the grey list is good for foreign investment,” Seaga told the Financial Gleaner on Monday.
“It also creates an easier path for us to attract international financing at better rates. Jamaica’s removal from the grey list is a good thing, and we’re happy that we’re off the list now,” added Seaga, who heads the umbrella group representing most of the large, established businesses in Jamaica.
Meanwhile, the JBA, in a release, said its member banks had collaborated with the Ministry of Finance and the Bank of Jamaica, and other key stakeholders, in the development and execution of required anti-money-laundering infrastructure.
“This news will augur well for the banking industry as it will assist with our correspondent banking relationships. There will also be a broader impact on the country, as Jamaica will now be a more favourable option for international investors, which augurs well for commercial activity and growth,” said the JBA, whose president is Audrey Tugwell Henry of Scotia Group.
GREY LIST
Last Friday, Finance Minister Dr Nigel Clarke, while in Singapore for the meeting of the FATF, advised Jamaicans that the country had finally been removed from the grey list.
The FATF is described as the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
The FATF said in a statement that “Jamaica strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that FATF identified in February 2020” and no longer needed to be subjected to its monitoring process.
In February 2020, when Jamaica was placed on the grey list, the Holness administration agreed to a 13-point action plan to address the deficiencies. More recently, the issues addressed included greater transparency regarding the true owners of companies, referred to as beneficial ownership, and subjecting charities to tighter oversight.
Meanwhile, Seaga urged businesses to adhere to the legal requirements for business operations.
“There is certain documentation that needs to be done if you are running a proper business,” said the PSOJ president.
“Some of the things that may seem like a bother today will end up helping you in the long run. For example, if you want your company to go public, you [will] have the necessary framework in place to build a solid foundation,” Seaga said, referring to businesses that may want to pursue listing on the stock market.