Dear Editor,

Jamaica’s removal from the Financial Action Task Force’s (FATF) “grey list” marks a historic milestone, with profound implications for the nation’s economic future and international standing.

Minister of Finance and the Public Service Dr Nigel Clarke announced this significant achievement on June 28, 2024, following the FATF plenary in Singapore. This victory reflects Jamaica’s unwavering commitment to enhancing its anti-money laundering/countering the financing of terrorism (AML/CFT) protocols, even amidst the challenges posed by the COVID-19 pandemic.

Being placed on the grey list in February 2020 signalled to international financial and other institutions that Jamaica had strategic deficiencies in its AML/CFT protocols. This designation resulted in increased scrutiny and higher transaction costs, which hampered the country’s economic activities and deterred foreign investment. The successful removal from this list indicates that Jamaica has not only addressed these deficiencies but has also implemented robust measures to prevent future lapses.

The FATF’s recognition of Jamaica’s “significant progress” and the “strengthened effectiveness” of its AML/CFT regime is a testament to the country’s dedication to international financial standards. This achievement is expected to restore confidence among international investors and financial institutions, paving the way for enhanced economic opportunities and growth.

Economic and financial implications of being removed from the FATF’s grey list includes:

1) Boost in foreign investment: Removal from the grey list will likely lead to increased foreign direct investment (FDI). Investors who were previously wary of the heightened risks and costs associated with a grey-listed country will now view Jamaica as a more secure and attractive destination for investment.

2) Lower transaction costs: With the grey listing lifted, international transactions involving Jamaican entities will no longer require additional due diligence, reducing the cost and complexity of cross-border trade and finance.

3) Enhanced economic stability: Strengthened AML/CFT frameworks contribute to overall financial stability, reducing the risks associated with money laundering and terrorist financing. This stability is crucial for sustained economic growth and development.

To maintain and build on this achievement, Jamaica must remain vigilant and proactive in its AML/CFT efforts. Here are key strategies to ensure continued compliance and enhancement:

a) Legislative and regulatory updates: As part of the upcoming fifth round of AML/CFT/countering proliferation financing (CPF) mutual evaluations in 2026, Jamaica will need to introduce or amend laws to regulate virtual assets and providers, mandate the registration of non-profit organisations, and address targeted financial sanctions related to proliferation. Proactive legislative efforts will be essential in meeting these new standards.

b) Strengthening institutional frameworks: Continued support and enhancement of bodies like the National Anti-Money Laundering Committee (NAMLC) will be critical. These institutions play a pivotal role in ensuring adherence to FATF recommendations and maintaining the effectiveness of AML/CFT policies.

c) International collaboration: Ongoing cooperation with international bodies, such as the FATF, the Caribbean Financial Action Task Force (CFATF), and other multilateral partners will help Jamaica stay aligned with global best practices and receive the necessary support for AML/CFT initiatives.

d) Public awareness and education: Raising awareness about AML/CFT measures among the public and private sectors will enhance compliance and foster a culture of vigilance against financial crimes.

5) Technological advancements: Investing in advanced technology and data analytics to monitor and combat money laundering and terrorist financing activities will improve detection and enforcement capabilities.

Jamaica’s removal from the FATF’s grey list is a testament to the nation’s resilience and commitment to upholding international financial standards. This achievement is expected to catalyse economic growth, attract foreign investment, and enhance financial stability. However, the journey does not end here. Continuous efforts to update legislative frameworks, strengthen institutions, and collaborate internationally will be essential to maintaining and advancing Jamaica’s AML/CFT regime. By doing so, Jamaica can secure a prosperous and stable economic future, free from the shadow of financial grey listing.

This milestone is not just a celebration of past achievements but a call to action for future vigilance and dedication. Jamaica’s example serves as a powerful reminder that with focused effort and unwavering commitment, significant and positive change is always within reach.

Janiel McEwan

Youth Advocate

janielmcewan17@gmail.com