Jamaica recently completed its National Risk Assessment (NRA) regarding its Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regime.

The objective of the NRA is to identify the vulnerabilities and threats to the country’s AML and CFT regime to inform policy measures to address areas of risk that require attention. 

The requirement for countries to take measures to understand their AML/CFT risks and circumstances arises from the Financial Action Task Force’s (FATF) 40 Recommendations on International Standards on Combating Money Laundering, the Financing of Terrorism and Proliferation Financing.

These set the standards for effective implementation of legal, regulatory and operational measures for combatting money laundering, terrorist financing and proliferation financing. A national risk assessment is an established mechanism through which most countries demonstrate their understanding of their risk and circumstances. 

The NRA report is the result of a multi-agency exercise that lasted three years and covered 11 financial and designated non-financial businesses and professions sectors in Jamaica.  The NRA covers the period January 2016 to December 2019 and identifies the money laundering threats, vulnerabilities, and risks that the country faces.

The NRA involved multiple stakeholder groups, inclusive of competent authorities, law enforcement agencies, and the designated authority. Feedback on the NRA was also received from the public sector through stakeholder consultation sessions and surveys administered to several sectors.  

Where certain sectors have been identified as having higher money laundering and terrorism financing risk, financial institutions should take this into consideration when assessing the level of AML/CTF risk posed by customers from these sectors. 

Stakeholders should also consider the results of the NRA when assessing their AML/CTF risk factors in relation to products and services offered, transactions undertaken and delivery channels, and whether they are susceptible to the typologies identified in the NRA.

The NRA is a live document that will be frequently updated to ensure that the money laundering/terrorism financing risks within the country are understood and the measures that are implemented to combat these risks remain relevant.