THE Companies Office of Jamaica (COJ) has established an Anti-Money Laundering and Counter Terrorism and Proliferation of Arms Financing (AML & CTF) Department.

The new unit is a part of COJ’s efforts to meet international standards set by the Financial Action Task Force.

In a release, COJ said further amendments to the Companies Act will also be made to strengthen and expand the provisions of the beneficial ownership regime.

The Companies Act was amended in 2017 to include the obligation to report beneficial ownership information for each company.

The establishment of the AML & CTF and the amendments to the Companies Act could see Jamaica taken off FATF’s greylist as well as the blacklist of the European Union.

The new unit, which has investigative powers, is charged with ensuring that information received regarding beneficial owners is accurate and current.

As part of its enforcement activities the unit will also conduct field visits, inspect the Register of Members and any other relevant documentation of entities, impose pecuniary penalties, as well as refer entities for litigation and removal. Only specified bodies, agencies, and entities will have access to beneficial ownership information.

The amendments, which are expected to be tabled in both Houses of Parliament this calendar year, will ensure greater transparency and improved corporate governance in companies as well as reduce the risk of legal persons such as companies being abused and used for money laundering, terrorism and proliferation of arms financing.

If the proposals are accepted by Parliament all companies, including non-profits and overseas companies, will have to identify and indicate the beneficial owners of companies.

A beneficial owner is any natural person/s who exercise/s ultimate ownership and ultimate effective control of a company.

The new obligations include submitting detailed particulars of beneficial owners, and identifying politically exposed persons who are members or officers of a company.

Companies may also face increased sanctions for not filing on time, not providing accurate information, not allowing the registrar access to verify information, not keeping records for stipulated periods, and not filing change documents for beneficial owners as mandated.