FSC claims BOJ has remit to deal with reporter issues of deposit takers

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The Financial Services Commission (FSC), requested by the Jamaica Observer to remark on issues expressed by the World Bank regarding the function of national regulatory authorities in working with the correspondent banking issue, indicated that it was carrying through its mandate. Banks, it said, will be the duty of the Bank of Jamaica, while it’s controlling the non- deposit.

In a 2015 report on states impacted with a decline in correspondent banking relationships, the World Bank (WB) called on supervisory associations in the national level to take on more responsibilities in providing confidences over money laundering as well as other aspects of hazard. Such assurances, the WB said, might avoid the withdrawal of correspondent banking services.

In the newest report titled “Withdrawal from Correspondent Banking; Where, Why, and How to Proceed About It,” WB said that managers should ensure banks follow a risk-based strategy and “supply an unequivocal statement from national managers that there WOn’t be a zero tolerance strategy for failures to find money laundering and setting out the tenets for an acceptable risk assessment.”

It was the BOJ, it said, which includes responsibility for the deposit-taking sector.

‘The BOJ has regulatory supervision over cambios credit unions, bureau de change and money transfer and remittance agents and bureaus.

The FSC said it controls the non-deposit taking sector, including pension, insurance, and securities; and is the designated competent authority under TPA and POCA for AML/CFT in these sectors.

Like BOJ, these laws empower the FSC to visit obligations and obligations on its licensees to ensure their compliance with regulations and AML/CFT rules. For the reason that respect, the FSC supplies AML training for and issues guidelines to its licensees in the securities, insurance, and pension on best practices and successful measures to detect and stop money laundering,” the authority said.

Queries sent to the BOJ involving the establishment of a new Financial Sector Oversight Committee — which should happen to be activated in closing quarter 2015 and on which the FSC as well as are responsible and the BOJ sits — weren’t replied. The thing, prescribed in a fresh Banking Services Act – on paper — has responsibility for several firms in the fiscal sector.

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