Deputy Governor of the Bank of Jamaica Natalie Haynes has made it clear that not just anyone can open a cambio, especially now that a code designed to reform and modernise the local foreign exchange market is in place.

“We don’t just allow anyone to come into the industry. So if you have a criminal record, don’t bother; we’re looking for people who are prudent, sound, [can stand up to] probity, [and who display good] judgement,” Haynes told reporters and editors at this week’s Jamaica Observer Monday Exchange at the newspaper’s headquarters in St Andrew.

Last week the central bank, local cambios and commercial bankers signed the Bank of International Settlements Foreign Exchange (FX) Global Code of Conduct which mandates them to observe the principles of global best practices in the foreign exchange market.

The entire requirements for a licence to operate a cambio in Jamaica, the licence application form, operating directions for cambios and other relevant information are posted on the BOJ’s website, as it has supervisory and licensing authority over foreign exchange traders.

Basic requirements for a cambio licence include but are not limited to:

* Applicant (company) must have a minimum capital requirement of US$25,000 or the Jamaica dollar equivalent to begin operations of the cambio;

* Certified copy of a valid Tax Compliance Certificate;

* Copy of Certificate of Registration of business name and copy of Certificate of Incorporation — Licences will be issued only to companies registered to do business in Jamaica and that have been operating for a minimum of two years;

* Applicants should possess the capacity to transmit information to BOJ electronically;

* Each manager, director of the company and significant shareholder must undergo a fit and proper assessment, which includes a character reference, information from the Financial Investigations Division, previous employers and the police.

“So, you satisfy all that then you get your cambio licence,” Haynes said on Monday.

“We have a 60-business day turnover time that we commit to as part of our own strategic plan; so if you send me [one document] and don’t send me two other things on the list then your clock starts when I get everything, and I give you 60 business days to tell you yea or nay that you get the licence,” she said.

As for the revoking of the licence of a cambio operator, Haynes added that BOJ can do so on the terms of not being in compliance with the fit and proper assessment and for “other egregious infractions”.

“We always publish in newspapers, whether we take the licence or the licence is voluntarily surrendered as there is a difference and we can appreciate the distinction,” she said.