Eyes on real estate crooks
Chang puts MOCA, FID, C-TOC under pressure to unmask money launderers
Published:Wednesday | February 2, 2022 | 12:09 AM
Three of Jamaica’s top investigative bodies have turned their searchlights on the real estate market where ill-gotten money is being channelled to fund construction projects.
Minister of National Security Dr Horace Chang told his parliamentary colleagues on Tuesday that he was expecting to see results this year from the probes being carried out by the Financial Investigations Division (FID), the Major Organised Crime and Anti-Corruption Agency (MOCA), and the Counter-Terrorism and Organised Crime and Investigation Branch (C-TOC).
“The security forces are aware and are taking a closer look at these things and I expect to see some results come out of it during the course of this year, because between the FID and MOCA and C-TOC, we should be able to begin to identify and bring to book some of these operatives,” Chang declared.
He was debating the Terrorism (Designated Reporting Entity) (Trust and Corporate Services Providers) Order, 2022 that seeks to strengthen the country’s legislative framework to combat money laundering and terrorist financing.
Chang described money laundering in Jamaica as a challenge to the country’s entire security process.
The national security minister observed that a significant amount of funding comes into the country through advanced credit fraud or lotto scamming.
According to Chang, when funds from lotto scamming gets into the financial system, it undermines the entire economic process.
The minister said that is why it is necessary for the country to have robust legislation to intercept illicit activity.
Chang drew attention to what he said was “the multi-storey apartments” and developments in Kingston that raised a lot of questions.
He indicated that even when there was a downturn in economic activity, owing to the pandemic, the construction sector appeared to be booming.
“You travel to some sections of Jamaica, and the level of construction even at this time, in fact certainly during the year when we had economic decline, construction went up significantly,” said the national security minister.
Chang noted that cement sales increased by more than 20 per cent and huge investments have been made in construction because of the industry’s ease of entry for those awash with cash.
According to Chang, the problem was not only confined to lotto scamming but gangsters were involved in major extortion. He said that contractors and businesses are being extorted significant sums.
Leader of the Opposition Mark Golding said that while the order that was being debated sought to prevent money laundering and the financing of terrorism in Jamaica, the measure was deficient.
He asserted that the order did not include real estate developers.
Golding said this was an important gap that the Government should review quickly.
“It is well known that there are opportunities for laundering money through real estate projects in the country and we know from what has been happening from some of the municipal corporations, that the enforcement of rules around planning approvals is not what it should be,” the opposition leader said.
Golding stressed that real estate dealers are covered under the arrangement but developers are not.