COJ establishes anti-money laundering unit

The Companies Office of Jamaica (COJ) is once again pressing ahead to meet international standards set by the Financial Action Task Force with the establishment of an Anti-Money Laundering and Counter Terrorism and Proliferation of Arms Financing Department, and further amendments to the Companies Act to strengthen and expand the provisions of the beneficial ownership regime.

This Companies Act was amended in 2017 to include the obligation to report beneficial ownership information for each company.

The establishment of the AML and CTF and the amendments to the Companies Act could see Jamaica taken off the Financial Action Task Force’s graylist, as well as the blacklist of the European Union.

The new unit, which has investigative powers, is charged with ensuring that information received regarding beneficial owners are accurate and current. As part of its enforcement activities, the unit will also conduct field visits, inspect the register of members and any other relevant documentation of entities, impose pecuniary penalties, as well as refer entities for litigation and removal. Only specified bodies, agencies and entities will have access to beneficial ownership information.

The amendments which are expected to be tabled in both houses of parliament this calendar year will ensure greater transparency and improved corporate governance in companies, as well as reduce the risk of legal people, such as companies being abused and used for money laundering and terrorism and proliferation of arms financing.

If the proposals are accepted by parliament, all companies including non-profits and overseas companies will have to identify and indicate the beneficial owners of companies. A beneficial owner is any natural person/s that exercise/s ultimate ownership and ultimate effective control of a company.

The new obligations include submitting detailed particulars of beneficial owners, and identifying politically exposed people who are members or officers of a company. Companies might also face increased sanctions for not filing on time, not providing accurate information, not allowing the registrar access to verify information, not keeping records for stipulated periods and not filing change documents for beneficial owners as mandated.