Emerging as an outgrowth of the compliance department, the anti-money laundering and counter-terrorism and proliferation of arms financing (AML-CFT) unit of the Companies Office of Jamaica (COJ) said it continues to step up its vigilance as it pushes to have all registered companies fully compliant and insulated from fraud-related concerns.

Established in 2022, the unit, which gained sharper teeth in April 2023 following the passage of a Companies Act amendment, was set-up as part of requirements needed to meet international standards prescribed by the Financial Action Task Force (FATF), which is the global body put in place to monitor money laundering and counter-terrorism financing activities.

The 2023 amendments, which expanded the provisions of the COJ’s beneficial ownership regime, now makes it mandatory for all owners/controllers of a company to be fully identified. Under its provision, the COJ is able to request more detailed particulars for business owners when registering companies, making it easier for the office to easily identify politically exposed people who may be members or officers of a company.

This, since the amended Act gives the registrar the power to verify the accuracy of information received from companies, a provision which previously did not exist. Through rigorous verification processes and third-party vetting, the COJ said it leaves no stone unturned in ensuring compliance.

“This is to ensure that we are onboarding persons who are who they say they are. As such, when there are changes in shareholders or directors of a company, we also have to do the necessary checks to ensure that the names provided are the actual persons and that all information presented is up to date,” AML Manager Inger Hainsley-Bennett told the
Jamaica Observer.

She said that the unit, which has to date removed some 600 companies from a registrar containing about 2,000 ‘high-risk’ companies which have failed to file the necessary beneficial ownership information, also has plans to strike-off more of them that fail to meet the mandated requirements.

“It is a rolling figure, so we have another 100 of these companies to remove by the end of this month and going forward,” Hainsley-Bennett added.

The higher risk companies. which are those having “complex corporate structures”, are those on which heavy focus is placed by the unit during the investigation process.

“Previously the COJ would only remove a company if we think they are no longer in operation or conducting business, but with this unit, they can be administratively struck-off for either failing to file beneficial ownership information or for failing to make the necessary corrections in instances where the owner(s) have been notified to do so,” CEO and Registrar of Companies at the COJ Shellie Leon pointed out during a Jamaica Observer Business Forum held last week.

Having witnessed an improved 40 per cent compliance rate, the COJ, Hainsley-Bennett said, continues to embark on an aggressive public sensitisation campaign with the hope of having more companies becoming fully compliant under the new beneficial ownership regime.

“While sanctions are being executed, we endeavour to make sure that we get more persons to voluntary compliance, which is why we have sought to get them trained and to become more aware as we continue to get the message out there,” Hainsley-Bennett said.

“We have launched a beneficial hub website (bohubja.com) which contains everything beneficial owners should know and we also have an online beneficial owner training platform for persons who may have missed face-to-face training sessions, allowing them to catch up virtually. This, as we want information about beneficial owners to become more available and accessible at all touch points and at any time of day,” she added.

Working with the national AML committee made up of a number of players in the business and finance community, the body, through its own set of implemented measures to guide company registration, said the completion of amendments to the Act last year was instrumental in having Jamaica removed from FATF’s grey list.

Jamaica, which was placed on the grey list by FATF in 2020, was only last month removed after the country strengthened the effectiveness of its AML/CFT regime to meet the commitments of a 13-point action plan devised to reverse deficiencies previously identified.

“The recent amendments to the companies Act were part of those significant steps. Coming out of this process we also had to institute a beneficial ownership registry which has been made available to law enforcement and all other competent authorities, giving them access to information which may also be needed to satisfy their AML mandate or investigation,” Hainsley- Bennett said.