KYC.IO

Global Regulations and Requirements for KYC Onboarding
(powered by KYC-Chain)

KYC to onboard domestic persons

namepermanent address

KYC to onboard international persons

namepermanent address

corporate requirements

full nameTax payerregistered office addresscertificate of incorporationarticles of incorporation

National ID card name

National ID Cards

National ID Photo

Does the country have Esignature Laws?

Electronic Transactions Act

E-sig law files

What year did the relevant AML laws and regulations become effective?

1996

Further details on AML regime

Money Laundering Act 1996 which was subsequently repealed by The Proceeds of Crime Act 2007 which came into effect in May 2007, the Proceeds of Crime (Money Laundering Prevention) Regulations 2007, and the Proceeds of Crime Regulations 2007.

Who is the regulator for AML controls for Banking

Bank of Jamaica is responsible for supervising commercial banks, merchant banks, building societies and credit unions

Link to site

www.boj.org.jm

Other financial Services

Foreign exchange traders, bureaux de change and remittance companies are supervised by the Bank of Jamaica and the Financial Services Commission is responsible for supervising firms and individuals in the securities and insurance industry.

Website of Regulator

www.fscjamaica.org

Financial Sector regulator

N/A

Practical Guidance for AML

The Bank of Jamaica published AML/CFT policy which was most recently revised in Sep 2010, Notes on the Prevention and Detection of Money Laundering and Terrorist Financing Activities for commercial banks, merchant banks, building societies, credit unions, cambios, bureau de change and money transfer and remittance agents and agencies which was most recently revised in Mar 2009, and The Financial Services Commission provides guidance on AML (revised 20 Mar 2014

Practical guidance PDF's

Is there a requirement to verify the identity of customers retroactively?

No.

Retroactive details

Paragraph 46 of the Bank of Jamaica’s AML/CFT Guidance Notes provides that where no comprehensive review has been conducted of existing client identification records since the coming into effect of the Money Laundering Act, Regulations and the Bank of Jamaica’s Guidance Notes than the institution should immediately implement a retrospective review of all pre-existing accounts/customers to ensure that full KYC identification details are on file

Has the country been the subject of FATF mutal evaluation in the last 3 years?

The last Caribbean FATF Mutual Evaluation Report on Jamaica was published in Oct 2005. It found Jamaica to be partially or non-compliant with 18 recommendations. The 11th Follow-Up Report on Jamaica was published on 03 Dec 2014. The 9th Follow Up-Report dated 03 Jan 2014 recommended that Jamaica be taken out of enhanced and placed in regular (expedited) follow up. The last Financial System Stability Assessment done by the IMF on Jamaica was in Apr 2012.

Are there minimum transaction thresholds (Y/N)

Yes

More details on minimum transaction thresholds.

Article 8 of the Proceeds of Crime (Money Laundering Prevention) Regulations 2007 provides for de minimis amounts which do not require the application of client due diligence. In the case of transactions of a value of USD250 or less in either USD or any other currency, unless the nature of the transaction is suspicious. The exemption however does not apply to a money transfer and remittance agent or agency.

What are the requirements for customer identification information for individuals

Individuals: True name and names used, correct permanent address including postal address (if different from permanent address), date and place of birth, nationality, contact numbers, date and place of birth, taxpayer registration number, at least two referees, and source of funds and wealth where considered appropriate. Identification should be verified from documents issued by reputable sources which includes a valid driver’s licence bearing a photograph, current valid passport, current valid voter’s identification card with a photograph, signed employer identity card bearing a photograph and signature or taxpayer registration number in addition to any one of the other identification documents listed.

Details to be Collected on Corporates

Legal persons: Entity’s full name, description of the business conducted by the entity, country or jurisdiction of incorporation or establishment, taxpayer registration number, registered office or place of business, date on which the entity began to hold and ceased to hold the account, full name, date of birth, most recent and previous addresses of any person who is a signatory to the account. The following documentation should be obtained: Certificate of incorporation or registration, articles of incorporation or partnership deed, director’s resolution authorising company’s management to engage in transactions, financial institutions mandate, signed application form or an account opening authority containing specimen signatures, a financial statement of the business (audited except in the case of companies incorporated and in operation for less than 18 months), a description of the company’s principal line of business and suppliers (if applicable) list of names, addresses and nationalities of principal owners, directors, beneficiaries and management officers including directors, beneficiaries and management officers including evidence of the identity of natural persons, Group/Corporate structure where applicable, tax compliance certificate and a copy of the licence to operate where the principal line of business is one that falls under a regulatory/supervisory body and determine and document the source of funds and wealth.

What are the high level requirements around beneficial ownership (identification and verification)?

There is no specific information in local guidance which deals specifically with beneficial ownership. However, firms should carry out verification in respect of the parties operating the account. Where there are underlying principals, the true nature of the relationship between the principals and the account signatories must also be established. Appropriate enquiries should be performed on the principals, especially if the signatories are accustomed to acting on their instructions. In this context “principals” should be understood in its widest sense to include, for example, beneficial owners, settlers, controlling shareholders, directors, major beneficiaries etc.

What circumstances are enhanced customer due diligence measures required?

a) institutions offering private banking services for high net worth individuals must ensure that enhanced due diligence policies and procedures are developed and documented. Senior management should ensure that the personal circumstances, income sources and wealth of private banking clients are known and verified as far as possible and must provide approval for such relationships; b) where accounts are transferred from another financial institution, enhanced KYC standards should be applied especially if the licensee has any reason to believe that the account holder has been refused banking facilities by the other financial institutions; c) PEPs; d) non face-to-face customers; and e) correspondent banking.

How should FI's deal with Politically exposed persons

Financial institutions are required to implement enhanced due diligence for business relationships involving foreign and domestic PEPs as follows: a) investigation and determination of the income sources prior to opening an account. Reference to income sources includes source of funds, source of wealth and asset holdings, confirmation of the general salary and entitlements for public positions; b) senior management approval of the decision to open an account for a PEP; c) ongoing monitoring of PEP accounts; and d) regular reviews to ensure KYC information remains up to date.

What enhanced due diligence must be performed for correspondent banking relationships?

The following enhanced due diligence should be performed by correspondent banks: a) obtaining authenticated/certified copies of certificates of incorporation and articles of association; b) obtaining authenticated/certified copies of banking licenses or similar authorisation documents, as well as any additional licences in respect of foreign exchange; c) determining the supervisory authority which has oversight responsibility for the respondent bank; d) determining the ownership of the financial institution; e) obtaining details of the respondent bank’s board and management composition; f) determining the location and major activities of the financial institution; g) obtaining details regarding the group structure within which the respondent bank operates, as well as any subsidiaries it may have; h) obtaining proof off its years of operation, along with access to its audited financial statements; i) information as to its external auditors; j) ascertaining whether the bank has established and implemented sound CDD, AML/CFT policies and strategies and appointed a Compliance Officer; k) ascertaining whether the respondent bank has been the subject or is currently the subject of any regulatory action or investigation; l) establishing the purpose of the account; m) documenting the respective responsibilities of each institution in the operation of the account; n) identifying any third party that may have access to the account; and o) ensuring senior management approval is obtained.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Yes

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

Financial institutions are encouraged to avoid the practice of opening new accounts for non face-to-face customers unless higher standards of scrutiny are applied. This requires more rigorous identification and verification standards including independent verification by a reputable third party.

To whom are SAR's made? (suspicious activity reports)

The Financial Investigations Division. In Jamaica, such reports are referred to as suspicious transaction reports (“STRs”)

Link to website of SAR reporting

http://www.mof.gov.jm/financial-investigations/units-sections.html

Other Suspicious or unusual transactions obligations.

Yes, cash transactions over a certain threshold should be reported to the Financial Investigations Division. Article 3 of the Proceeds of Crime (Money Laundering Prevention) Regulations 2007 provides that the following cash transactions must be reported: a) a money transfer and remittance agent or agency of USD5,000 or more; b) cambios and bureau de change of USD8,000 or more; and c) any other financial institution USD15,000 or more. Transactions conducted by the Central Bank of Jamaica, a ministry, department or agency of government, a statutory body or authority, a company registered in which the Government or an agency of the government is in a position to influence the policy of the company, any embassy, high commission or consular office is exempt from the requirement. The duty to report extends beyond transactions being conducted with customers to transactions that another person has engaged in which may constitute money laundering. Section 101 of the Proceeds of Crime Act 2007 requires banks to make a report where cash, which includes negotiable instruments, exceeds USD10,000 or the equivalent amount in any currency being taken in or out of Jamaica. Paragraph 102 of the Bank of Jamaica’s AML/CFT Guidance Notes indicates that STRs should be filed in cases where the suspicion is that funds are being diverted to avoid the payment of taxes or to otherwise deprive the government of revenues.

Are there any de-minimis thresholds below which transactions do not need to be reported?

No, all suspicious transactions should be reported

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Section 94 of the Proceeds of Crime Act 2007 criminalises the failure to make the requisite disclosure within the stipulated timeframe of 15 days. Failure to file suspicious transaction reports with the designated authority will attract up to one year imprisonment jail or JMD1m (approx. USD8,000) (Resident Magistrate, RM Court). Failure to file a threshold transaction report attracts a fine of up to JMD400,000 (approx. USD3,000) (RM Court). In respect to tipping off a company can be fined up to JMD600,000 (approx. USD5,000) (RM Court). Section 97 of the Proceeds of Crime Act 2007 criminalises tipping off.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

No.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

Yes, those making reports are required to adhere to the ‘appropriate consent’ procedure contained in section 91 and 99 of the Proceeds of Crime Act 2007.

Does the local legislation allow transactions to be monitored outside the jurisdiction?

No.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

No.

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

N/A

To whom should the report on AML systems be submitted?

N/A

Is an AML system part of the financial statement audit?

N/A

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

N/A

Data Protection Laws And Personal Data

Data Protection for Corporate Data

Data protection for "sensitive Data" and additional protections.

Jamaica is in the process of amending its data protection laws.

Do any restrictions on the transfer of credit reports exist?

N/A

Regulator Acronym

BOJ

Year of last FATF mutual evaluation

N/A

Field 67

financial institutionidentification&verification

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Requirement to proceed

Yes

requirement to use automated suspicious transaction tools

Who are SARS made to?

FID

shell banks

Yes

EDD for correspondent banking

Yes

Minimum transactions

JMD 32,289

Min transaction USD

250

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

2013 saw the passage of considerable amendments to existing money laundering legislation including the Financial Investigations Division (Amendment) Act which was passed in Jul 2013, the Proceeds of

Non financial sector (e.g. casinos, high value goods etc.)

The Minister of National Security has designated attorneys, accountants, real estate dealers, casinos and gaming lounges as designated non-financial businesses and professions (“DNFBPs”) and therefore subject to the framework of supervision contained in section 91A of the Proceeds of Crime (Amendment) Act 2013. The changes will take effect for those categories from 01 Apr 2014 and for attorneys from 01 Jun 2014. Trust and company service providers and dealers in precious metals and stones have not been designated as DNFBPs.

Does the country have a risk based approach?

Paragraph 75 of the Bank of Jamaica’s Guidance Notes encourages the adoption of a risk based approach to the obtaining of KYC information.

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

The name and permanent address and employment details or a customer should be verified by an independent source, other than those provided by the customer, such as by requesting sight of a current utility bill for the customer’s place of residence, checking a local telephone directory, checking the voters list, home visits, confirming the customer’s place of employment independently, cross checking KYC details provided with other affiliated companies or other financial institutions.

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

N/A

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.

N/A