SSL fraud probe being paid for with money confiscated from criminals - finance ministry

The finance ministry says the extraordinary expenses being incurred in the Stocks and Securities Limited (SSL) fraud investigation are being paid for using assets confiscated from criminals and funds from the Financial Services Commission (FSC).

In a media release on Thursday, the ministry sought to make it clear that neither of these sources involved tax revenue.

The ministry clarified that the Financial Investigations Division (FID) has $300 million set aside in a special account arising from the confiscation of ill-gotten gains under Jamaica's proceeds of crime legislation.

It explained that this amount has been earmarked to fund the expansion of the building occupied by the FID as well as to fund the extraordinary expenses incurred by the FID in the SSL fraud investigation.

"These funds do not constitute tax revenue. These funds arise from the FID's work in identifying, restraining, forfeiting and monetising the proceeds of crime. That is, these funds arise from the confiscation of ill-gotten gains," it said.

Meanwhile, the finance ministry said the FSC, as a regulator of the non-bank financial sector, appointed a temporary manager of Stocks and Securities in January 2023.  It said this was necessary to, among other things, safeguard the Jamaican financial system.

"In the interest of clarity, expenses incurred by FSC in regard to SSL are being financed by the FSC from its own resources, inclusive of $1.8 billion in reserves on its balance sheet. The FSC is not the beneficiary of tax revenues and does not receive resources from the Consolidated Fund," the ministry stated.

It also noted that the temporary manager has retained a staff complement of 22 at SSL, down from 33, when the manager was appointed.

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