THE Bank of Jamaica (BOJ) is proposing new standards that would force banks and other deposit-taking institutions to treat customer complaints as board-level risk issues, with tracking numbers, named complaints officers, 45-business-day final responses and quarterly reports to the central bank.

Set out in an April 7 consultation paper, the measures would require institutions to acknowledge complaints within five business days, retain complaint records for at least 15 years, and submit board-approved implementation plans within six months after the final standards are issued. Failure to comply with a supervisory direction arising from breaches of the 2016 Banking Services Code of Conduct could lead to a fixed penalty of $7.5 million per breach.

The standards were prepared by the central bank and the Financial Services Commission through a joint market conduct and consumer protection working group. They come after a year in which BOJ’s Office of Consumer Complaints received 443 complaints, down from 463 in 2024, while the preliminary resolution rate rose to 84 per cent from 57.4 per cent.

They also come as Jamaica prepares to move to a Twin Peaks model of financial regulation, with BOJ expected to handle prudential supervision while the Financial Services Commission, or its successor entity, becomes the market conduct and consumer-protection regulator. Until the new model is in place, the complaint standards would rely on BOJ’s existing authority over deposit-taking institutions.

For customers, the proposed rules would spell out what should happen when they complain about missing funds, disputed fees, electronic banking problems, delays, poor service or other banking issues.

Banks and other deposit-taking institutions would have to accept complaints through several free channels, including telephone, branches, mobile banking, email and web portals. They would not be allowed to charge customers to file a complaint.

If a digital complaint channel goes down, the bank would have to restore it within one business day or tell customers how else they can file.

Once a complaint is made, the customer would have to receive, within five business days, a tracking number, the name and contact details of the officer handling the matter, an expected response timeline, and information on how to get updates.

The paper also says every expression of dissatisfaction must be treated as a complaint in the first instance. That means institutions should not simply dismiss a customer’s concern as feedback or an inquiry before assessing it.

A final written decision would be due within 45 business days. If the complaint is upheld, the institution would have to state what action will be taken. Redress should then be provided promptly, using the customer’s preferred payment method where feasible, with payment timelines communicated.

If the complaint is rejected, reasons would have to be provided and BOJ notified in writing. Customers would also have to be told, in writing, of their right to escalate the matter to BOJ or another regulator.

The paper says institutions must not create barriers, whether direct or indirect, that discourage customers from going to BOJ.

Complaints made anonymously, by a third party or on behalf of vulnerable customers, would also have to be recorded and investigated under the standard process. They could not be dismissed simply because of who submitted them, or because the source was anonymous.

Complaint information would have to be kept confidential and handled in line with the Data Protection Act and secrecy provisions under the Banking Services Act.

The paper also warns institutions not to avoid the complaint timeline by reclassifying complaints as “disputes” before issuing a final written response. It says internal labels, third-party investigations or card-scheme processes do not remove an institution’s obligations under the Code.

If a final decision cannot be reached within 45 business days, the institution would have to inform both the customer and BOJ in writing before the deadline expires, giving the reason for the delay and the expected completion date. The paper says that notice would not extend the maximum resolution period.

The standards would also move complaints into the control systems of financial institutions. Boards, or board committees, would have to approve complaints policy manuals, review and re-approve them at least every two years, and review complaint trends at least quarterly.

Those quarterly reviews would cover the number and type of complaints, how long they take to resolve, customer satisfaction, weaknesses in the process, and serious matters requiring management action.

The Bank of Jamaica is proposing new standards that would require deposit-taking institutions to acknowledge customer complaints within five business days and issue final decisions within 45 business days.

Senior management would have to examine whether complaints point to deeper problems in products, service, staffing, operations or controls. Compliance teams would oversee the complaints framework, while internal audit would test whether records are reliable and whether the system is working.

Each institution would need a dedicated complaint-handling unit. Designated complaints officers would be responsible for timely resolution, with their contact details displayed to customers and submitted to BOJ for a public repository.

Institutions would also have to keep searchable records of complaints, disputes and outcomes, including correspondence, officers responsible, action taken, final decisions, reimbursements and unresolved matters. Those records would have to be kept for at least 15 years.

The standards would require redress policies covering delays, incorrect charges, poor service, financial loss, inconvenience, refunds and fee waivers. Until a future legal framework is established, institutions would not be allowed to require customers to give up statutory or contractual rights as a condition of accepting compensation.

Where a deposit-taking institution breaches obligations under the Code, BOJ may issue a warning. If the problem is not corrected, the Supervisor may issue a direction under Section 132(6) of the Banking Services Act. Failure to comply with such a direction is an offence carrying a fixed penalty of $7.5 million per breach.

BOJ may also require restitution, enhanced monitoring, independent reviews, or board consideration of disciplinary action where there are systemic failures or governance weaknesses. It may also publish aggregated complaint statistics.

BOJ will allow two years for full compliance. Institutions would have to submit board-approved implementation plans within six months after the final standards are issued, show substantial compliance within one year, and achieve full compliance within two.

If adopted, the standards would make complaints more than customer-service matters. They would become warning signs that boards, auditors, compliance teams and regulators are expected to track before small problems become wider failures.