KINGSTON, Jamaica, CMC – The Jamaica government is moving to review several pieces of financial sector legislation to apply more stringent penalties for breaches.
Finance and the Public Service Minister, Dr. Nigel Clarke, said the review is necessary to strengthen the country’s ability to identify, investigate and prosecute financial crimes in the banking, securities, insurance, and pensions sectors.
The legislation to be amended includes the Securities Act, Banking Act, Insurance Act, and Pensions Act.
“We will stiffen the penalties for white-collar crime in the financial sector. The discrepancy between the sanctions for white collar crime and other forms of crime must be erased,” Clarke said, adding, “if you rob depositors or you defraud investors. You put our financial systems and our way of life at risk, the Jamaican society wants you to be put away for a long time”.
The announcement by the government comes as the authorities announced that the United States Federal Bureau of Investigation (FBI) would assist local authorities in investigating the alleged multi-million dollar fraud at the investment firm Stocks and Securities Limited (SSL).
Last week, Prime Minister Andrew Holness said no effort would be spared in uncovering the full extent of the fraud at the SSL, whose clients included eight-time Olympic champion Usain Bolt.
The legendary world-class sprinter has allegedly been fleeced of millions of dollars in local and foreign currencies given to the firm to invest.
Bolt has indicated through his lawyer that he had a balance of US$12.7 million at SSL as of October 31, 2022, but that figure declined to US$12,000 on January 11.
Clarke said that the government would also require securities dealers to publish their financial statements and material events at standards equivalent to public companies on the Jamaica Stock Exchange.
Material events relate to any information that would affect the judgment of an informed investor.
The government is also moving to tighten regulations around connected party transactions for securities dealers and introduce a fixed penalty regime, where companies can be fined for Anti-Money Laundering (AML)/Combatting the Financing of Terrorism (CFT) and other breaches.
“If they don’t pay, they go to court. We know that authorities have to take companies through the court process, and only then can the fines be imposed. This will improve the sanctions regime and the speed with which sanctions can be applied,” Clarke stated.
The Finance and the Public Service Minister further informed that the government would tighten regulations around insider trading to ensure that the penalties and sanctions regime is severe and dissuasive.
“We will require technical assistance from our international partners in the design of these reforms and in advising us of additional reforms that may be necessary,” Clarke added.
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