Job ad triggers BOJ probe - Bank of Accompong name breaches the law
Published:Tuesday | May 1, 2018 | 12:00 AM
An institution calling itself the Bank of Accompong is recruiting staff for the business, but while the type of banking activity was not disclosed, its name alone is considered a breach of the law.
Bank of Jamaica, BOJ, said that not only is the company unknown to them, but use of the word 'bank' is restricted to licensed deposit-takers, which it supervises.
On Sunday, April 1, the unknown entity, which is aligned with the Maroon community, advertised in local newspapers for a general bank manager, general clerk, an accountant and executive broker.
However, Bank of Accompong is not among the regulated commercial bank, merchant bank or mortgage bank overseen by the BOJ, nor is it known to the regulator of co-operatives and the credit union movement, which effectively comprises member-owned community banks.
The 11 deposit-taking institutions currently regulated by BOJ comprise: National Commercial Bank, Scotiabank Jamaica, JN Bank, Sagicor Bank, FirstCaribbean Jamaica, First Global Bank, JMMB Bank, Citibank Jamaica, Victoria Mutual Building Society, Scotia Jamaica Building Society and MF&G Trust - all together valued at nearly $1.5 trillion.
A search of the Companies Office of Jamaica records did not produce a listing for the Bank of Accompong. And BOJ Senior Deputy Governor John Robinson also said the central bank had no information on the entity.
"We are not in a position to direct you to any further information on this entity beyond what can be gleaned from the results of Internet searches," Robinson said. Later, his office requested more information about the ad, suggesting that a probe would be launched into the business.
"By way of general information, the Banking Services Act prohibits persons from engaging in activities involving the taking of deposits or in any other banking business without a licence being issued,"said Robinson, referencing Section 10 of the law.
"Furthermore, the word 'bank' and any grammatical variation or derivative of that word constitutes a restricted word under the BSA and accordingly, its use in the name or title of a company or other body is prohibited by the BSA and a contravention of that prohibition is an offence which, on conviction, carries a penalty of a fine and/or a custodial sentence," the central banker said.
The Financial Gleaner reached out to Bank of Accompong through the contact information on the job ad, but no response was forthcoming up to press time. Questions were also sent to the State of Accompong via its listed address on Facebook.
The community of Accompong in St Elizabeth gained autonomy with certain rights for limited self-government under a peace treaty with the British in 1739. Since Independence in 1962, the Government of Jamaica has continued to recognise the Maroon's indigenous rights.
A legal source said, however, that while the Maroons may have their own customs, they are still subject to the laws of the land, including the banking law.