THE Financial Investigations Division (FID) was formed on December 16, 2002, through the merger of the Financial Crimes Unit of the Director of Public Prosecutions (DPP) and the Revenue Protection Division (RPD) as the investigating entity for both tax-related and financial crimes, including money laundering.

In September 2012 Mr. Justin Felice was appointed the Chief Technical Director of the Division. He has approximately eighty (80) staff consisting of lawyers, forensic examiners, financial analysts and a team of police investigators from the Organised Crime Investigation Division (OCID) of the Jamaica Constabulary Force (JCF).

The FID also plays a critical role in the Government’s Economic Reform Programme through the protection of revenues. With the passage of fundamental legislation such as the Terrorism (Prevention) Act and Regulations 2005, 2010 respectively, Proceeds of Crime Act (POCA) 2007 and the Financial Investigations Division Act (FIDA) 2010, as well as the re-establishment of the Revenue Protection Division (RPD) in 2008, FID now serves as Jamaica’s Designated Authority “to effectively deal with the multidimensional and complex problem of financial crime”. Being the Designated Authority, POCA provides “for the investigation, identification and recovery of the proceeds of crime…” which has given FID the functional authority and power to deal with various aspects of organised crime.

Money laundering and the financing of terrorism are well-documented international problems and as such the sharing of intelligence between States is critical to tackling this phenomenon. Currently Jamaica is not a member of the Egmont Group that allows the sharing of information and intelligence internationally. The Egmont Group is an informal international gathering of Financial Intelligence Units (FIUs) that provide a forum for FIUs around the world to improve co-operation in the fight against money laundering and financing of terrorism and to foster the implementation of domestic programmes in this field. In May of this year, when legislative changes to the FIDA were passed by Parliament to assist Jamaica to become a member of the Egmont Group, Finance Minister Dr Peter Phillips stated, “Acceptance by the Group (Egmont) would help make Jamaica a more desirable environment.”

FID which is also referred to as the Asset Recovery Agency (ARA) has the mandate to:

* Investigate allegations of money laundering, financial crime and corruption in collaboration with other national and regional law enforcement agencies.

* Detect, deter and aid the prosecution of offences committed under the various acts dealing with financial crimes, by reducing the actual and expected profits that would evolve from such corrupt activities.

* Collaborate with regional bodies in responding to transnational crimes under the Mutual Legal Assistance (Criminal Matters) Act.

* Satisfy mandatory international requirements, promulgated by the FATF (Financial Action Task Force), Caribbean Financial Action Task Force (CFATF), World Bank and the International Monetary Fund (IMF).

The FID/ARA’s vision is: “Contributing to the national security of Jamaica by providing quality financial investigations that support the Government of Jamaica’s strategic priorities”. The focus of the Division’s investigations is to “Take the Profit out of Crime”, sending a strong signal to criminals and its facilitators that crime does not pay and that the FID/ARA will seek to seize, restrain and forfeit property obtained illegally and return the proceeds back into crime-fighting initiatives.

At present, the FID/ARA has in excess of JA $2.4 billion dollars of assets seized or restrained being subject to ongoing financial investigations. One new initiative being considered is that the Government should establish an asset recovery incentive scheme, with an agreed percentage of the forfeited assets being used to the benefit of our criminal justice system.

In order to carry out its mandate, the FID has been working hard with other local law enforcement agencies such as the JCF, Jamaica Customs Department, Tax Administration Jamaica and since May 2012, we have been key partners with the Major Organised Crime and Anti-Corruption Task Force (MOCA) in targeting high-level individuals suspected of involvement in money laundering, corrupt activities and other serious crimes. By tackling organised crime and corruption, this task force approach of law enforcement agencies will reduce instances of fraud against revenue, prevent revenue leakage, reduce instances of money laundering and advanced fee fraud (lottery scams).

One of the main statutory functions required by FID/ARA is to receive suspicious and threshold transactions reports, listed entity reports and international transportation of currency and bearer negotiable instruments from financial institutions. The designated financial institutions are banks, securities dealers, building societies, credit unions, insurance providers, cambios and remittance agencies. The reports are analysed and disseminated when required for further investigation which, if successful could lead to arrests, convictions and ultimately forfeiture/confiscation of assets.

It is hoped that in the near future this statutory requirement will be extended to cover other

non-financial institutions, namely casinos, real estate agencies, dealers in precious stones and metals, lawyers, notaries, accountants and trust company service providers who will be designated to submit suspicious cash transactions. Consideration should be given to include new and used-car dealers. Despite varying stages of consultation with these entities, FID/ARA is anxious for this designation to be completed as soon as possible so that international standards may be adopted by Jamaica to strengthen anti-money laundering and counter terrorism funding.

It is recognised that Jamaica remains to a significant extent a cash-based economy with many large cash transactions occurring daily, leaving no auditable trail for the transaction. This presents opportunities for unscrupulous persons to either evade their tax liabilities or to engage in money laundering transactions which become difficult to detect. There is a requirement for the Government to consider a limit or threshold on cash transactions, especially from high-risk sectors.

Efforts in the future by the FID/ARA will display Jamaica’s commitment to the transparent even-handed approach to fighting the cancer of corruption and organised crime; it will strengthen our financial systems and cement Jamaica’s reputation as “the place of choice to live, work, raise families and do business”.