Lawmakers breaching standards

Christopher Pryce, Contributor

The recent amendment to the Terrorism Prevention Act (TPA) is good news for the country. However, the process of how the amendment was moved is an embarrassing reminder that our legislature and the official organs of State still struggle in significant ways to entrench minimum standards of governance and best practices.

A recent newspaper article reveals, shamefully, that among the drivers used by the attorney general to push through final enactment in the Senate was the scare tactic that if we did not pass the amendment by March 31, there would be significant negative consequences for Jamaica. In reluctant support of the attorney general, I restate some of the known issues.

1. The IMF agreement of 2010 required the amendment, and failure to comply could harm our continued access to the international financial system.

2. Failure to pass the amendment would perpetuate Jamaica's non-abidance with Resolution 1373 of the UN Security Council. The purpose of the resolution was to implement internationally binding measures to disrupt and restrict terrorist organisations. It is interesting to note that, at the time of the passage of the said resolution, Jamaica was a non-permanent member of the Security Council.

3. I single out an additional issue that is disturbing. Jamaica is soon to undergo a scheduled review under the The Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF) regime. This is not a secret; the review cycle is known. At the last review in 2005 under the previous Government, the requirement to amend the Terrorism Prevention Act (TPA) was highlighted, among other concerns. And it took us down to the wire, some six years hence, to pass the amendment with just days to spare?

Lack of capacity

I highlight this episode as it reveals what seems to be the lack of capacity on the part of the people's Government to properly determine its priorities using risk-based and critical-path approaches. These management tools and techniques are not new, as most undergraduate engineering and operations research students have mastered them. I linger on this point, for the passage of the amendment does not mean we have escaped the proverbial sword of Damocles.

The technocrats should be well aware that the FATF review will have a focus on the effectiveness of our regulatory framework, and not merely on whether or not the jurisdiction has passed or amended appropriate regulations.

Unsatisfactory review

Our CARICOM neighbours Trinidad have felt the outcome of an unsatisfactory review, for in its October 22, 2010 release on its ongoing review of compliance with the Anti-Money Laundering/ Counter Financing of Terrorism (AML/CFT) standards, FATF acknowledged that while T&T had made "a high-level political commitment" - i.e. passed laws - to address strategic AML/CFT deficiencies, deficiencies remained. The corrective action plan for T&T included several steps for which the underlying theme is effectiveness and operationalisation of regulations. Trinidad remains under indictment today, even as it carries out remediating steps.

This poor display on the part of our leaders is a repeat performance, for I do recall that just at the last moment in 2010, it was MP Andrew Holness who had to rush through the House passage of the FID Act, a move that he unashamedly explained was required for Jamaica to seal the IMF deal. Yet, the FID bill had been languishing in the legislature for some time and did not suddenly come into existence in the dying moments of the rush to IMF approval. Indeed, I have to assume that at least the finance and national security ministers, and their opposite numbers, must have been aware of the criticality of the bill to Jamaica being part of the Egmont Group, a move that is important to the country's efforts to combat international financial crimes.

So, the FATF examiners are coming. They are not simpletons. They can detect window-dressing and will determine whether or not this TPA amendment, at this ninth hour, will save the day. For all our sakes, I do hope so.

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