Jamaica moves to widen oversight as digital payments shift beyond banks
JAMAICA is moving to widen regulatory oversight of digital payment providers and money transfer operators as a growing share of financial transactions shifts beyond traditional banking channels.
Proposed amendments to the Payment Clearing and Settlement framework and the Bank of Jamaica Act would strengthen supervisory authority over entities involved in clearing, settlement and money transfer activities.
The legislative changes come amid sustained growth in electronic transactions. The Bank of Jamaica has reported continued expansion in digital payment activity in recent years, alongside a nearly ninefold increase in internet-banking fraud incidents between 2019 and 2023, according to its Financial Stability Report 2024.
Payment and securities settlement systems are classified by the central bank as core financial infrastructure. These systems underpin retail payments, interbank transfers, securities settlement and remittance flows. As transaction volumes migrate to electronic platforms, a broader range of entities now participates in the movement of funds.
The amendments are designed to ensure supervisory authority extends consistently across this expanding payments ecosystem, including non-bank providers facilitating electronic transfers and cross-border money movement.
The Payment Clearing and Settlement (Amendment) Bill would update the statutory framework governing payment service providers that process and settle transactions between institutions and customers. Separate amendments to the Bank of Jamaica Act would reinforce oversight of money or value transfer services, including remittance operators and cambios.
Remittance channels remain a significant conduit for foreign exchange inflows. Clarifying supervisory provisions would formalise regulatory coverage as digital transaction channels diversify.
The measures reflect an adjustment of the regulatory perimeter rather than a response to instability. As financial intermediation evolves, oversight mechanisms are being aligned with the structure of payment activity to reduce the scope for operational and settlement risks to accumulate outside established supervisory frameworks.
The draft Bills remain under review before being tabled in Parliament. If enacted, the amendments would expand statutory oversight in line with the evolving structure of Jamaica’s payments system.
