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Ministry of Finance and the Public Service Fiscal Policy Paper 2017 75 | P a g e


Developments in the Financial Sector


During FY 2016/17, the Ministry of Finance and the Public Service (MoFPS) maintained its commitment to financial sector stability through efforts to improve the legislative framework and strengthen institutional capacity. To this end, various pieces of legislation were advanced through the legislative process. With the change in administration in February 2016, the legislative process was delayed as the new government reviewed the proposed pieces of legislation to ensure that they were aligned with their policy direction.

The Financial Investigations Division (FID) continued to actively pursue its mandate of dealing with matters relating to financial crimes, including money laundering, while the Financial Institutions Services (FIS) continued its winding down operations on behalf of the Financial Sector Adjustment Company (FINSAC).

The progress of the financial sector reforms undertaken during FY 2016/17, as well as some of the major activities and achievements of the FID and the FIS are highlighted below.

Banking Services Act (BSA)

In accordance with the provisions of the Banking Services Act, the Banking Services (Deposit Taking Institutions) (Agent Banking) Regulations was approved by Parliament during FY 2016/17 and the Banking Services (Deposit Taking Institutions) (Customer Related Matters) Code of Conduct was issued. The Banking Services (Deposit Taking Institutions) (Agent Banking) Regulations, which was passed in November 2016, provide a framework that will allow some banking businesses to be undertaken through agents authorized by the Supervisory Authority. The objective is to allow a widening of banking access channels beyond existing deposit taking institutions’ branch networks and electronic access channels. This will include the use of third-party-owned locations that will offer some banking services alongside their own products and services. These services include deposits and withdrawals, payments of bills, loan repayments, electronic transfer of funds, account balance enquiries, and the collection of “know your customer” and customer due diligence documentation. The agents could include institutions such as supermarkets, gas stations, hardware stores, and money transfer and remittance entities. The Agent Banking Regulations is also expected to facilitate financial inclusion.

The Banking Services (Deposit Taking Institutions) (Customer Related Matters) Code of Conduct, which was issued by the Bank of Jamaica (BOJ) in August 2016, establishes minimum standards of good banking practice for deposit taking institutions in respect to customer related matters.

June 12, 2021

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given via telephone)

January 6, 2004

13 What was the salary increase for councilors

Full grant of access


January 6, 2004

14 Waiver documents associated with Finsac’s Sale of Island Broadcasting Services Ltd. (KLAS FM) to Wilmington Corporation Ltd.

Access granted Media

January 6, 2004

15 Documents detailing the purchase and renovation of house on Bracknell Avenue as residence for Governor of Bank of Jamaica (BOJ).

Partial access granted and remainder of request transferred to BOJ.

Civil Society

January 6, 2004





Latest financial statement for Swift Purscel Boys Home (Highgate)

Latest financial statement for Maxfield Children’s Home

Latest financial statement for Pringle’s Children’s Home

Latest financial statement for Mt. Olivet Children’s Home

Transferred to Ministry of Health (MOH)


January 6, 2004

20 Number of persons and companies and their names who have received tax relief under provisions of the Urban Renewal (Tax Relief) Act 1995 in the Downtown Montego Bay special development area

Transferred to UDC


January 6, 2004

21 Copy of Accounts of final cost of Government delegation to Non- Aligned Conference in Malaysia2003

Transferred to Cabinet Office

Civil Society

January 6, 2004

22 Government Agencies that gives grants or loans to people to start small businesses

Referred to MIDA


January 7, 2004

23 Waiver documents associated with the sale of HOT 102 FM.

Full access granted


January 8, 2004



Latest financial statement for John Bosco Children’s Home

Latest financial statement for Sunbeam Children’s Home

Transferred to Ministry of Health (MOH)


January 12, 2004

26 Which politicians received monies from Finsac’s bailout and the amount

Denied (Exempt documents)


January 14, 2004

27 All business and employee tax forms required at year-end

Referred to Jamaica Revenue Service website: www.jrs.gov.jm


January 14, 2004

28 Names of Finsac borrowers over $25M and amount written off.

Denied (Information exempt)


June 12, 2021

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Ministry of Finance and the Public Service Fiscal Policy Paper 2017 77 | P a g e

financial products and services, which would enable them to save, invest and build economic wealth. The FIS">NFIS will focus on the following priority areas: MSME and agriculture finance, housing finance, consumer protection and financial literacy, and retail payment systems.

Enhancement of the Resolution Framework for Financial Institutions Preliminary work commenced with the drafting of a concept paper proposing a special resolution regime (SRR) for financial institutions. This concept paper will inform the drafting of a consultation paper, which is expected to be released for public feedback by end February 2017. An inter-agency technical working group of the Financial Regulatory Committee is drafting the papers, with technical assistance from the International Monetary Fund.

The proposed SRR for financial institutions will provide a framework for the orderly resolution of distressed financial institutions in order to protect financial stability whilst minimizing recourse to public funds. The proposed SRR is in keeping with international best practices promoted by the Financial Stability Board in its guidance document “Key Attributes of Effective Resolution Regimes for Financial Institutions”.

Financial Institutions Services Limited

During FY 2016/17, the FIS continued with the winding up of residual activities on behalf of FINSAC including selling remaining properties under its control. The following are some of its key achievements:-

 The audited financial statements for the year ended March 2016 for FIS and FINSAC were completed and submitted to the MOFPS in July 2016.

 The FIS sold the remaining 10 of the 31 Enchanted Gardens units, which netted $8.2mn. In addition, an agreement has been reached to sell the Mutual Life Warehouse Complex in Kingston which is expected to conclude by May 2017. The remaining properties in FINSAC’s portfolio are four ½ acre lots at Drax Hall, St. Ann and a 16-acre lot at Culloden, Westmoreland.

 A total of $48.0mn was collected from the sale of shares in various listed companies and another $12.0mn is anticipated from remaining sales by March 2017. Listed shares for dissolved companies will be transferred to the Accountant General by March 2017.

 The FIS has received seven (7) payments totalling US$3.4mn as at October 2016 under a settlement reached in 2013 regarding a property in St. Lucia which was owned by International Hotels (St. Lucia) Limited. There are three (3) remaining payments due in April 2017, October 2017 and April 2018, totalling US$1.3mn.

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Ministry of Finance and the Public Service Fiscal Policy Paper 2017 78 | P a g e

FIS continued efforts to resolve the following outstanding pension-related matters with Guardian Life Limited (GLL) and the Actuaries (Eckler):

o Jamaica+Mutual+Life+Staff+Superannuation">Jamaica Mutual Life Staff Superannuation; o Bank+Pension+Scheme">Eagle Merchant Bank Pension Scheme – Five (5) payments totalling $95.0mn were

received as at December 2016 and GLL will pay the remaining surplus of approximately $227.0mn in 12 equal monthly instalments of approx. $19.0mn each ending July 2017.

o Scheme for the Jamaica+Mutual+Properties+Limited">Jamaica Mutual Properties Limited - Distribution of surplus to the beneficiaries commenced in June 2015 and efforts continue to locate the remaining beneficiaries to facilitate completion of the pay-out.

 A number of litigation matters being pursued in the Courts by or against FINSAC and its affiliated entities is at various stages of the litigation process and includes the following:

o FINSAC had appealed the ruling in a case against the former Bank">Eagle Commercial Bank in respect of an amount payable of $3,800mn calculated by the claimant versus the $29mn, which FINSAC calculated and paid to the claimant. The appeal was heard in October 2016 and a decision is expected by March 2017.

o During 2016, FINSAC sold five (5) of the remaining properties related to the Privy Council judgment handed down against Donovan Crawford in 2005 in the Century litigation, netting $18.0mn. The sale of another unit is expected by March 2017 with projected proceeds of $9.0mn. The two (2) remaining properties are expected to net about $3.0mn.

o In 2015, FINSAC received its share of the net proceeds of US$855,000 from the sale of the Grenada Crescent building, following a favourable judgement in 2006 against Dr Paul Chen Young in the Eagle litigation. Dr Chen Young subsequently appealed the judgement and also brought a suit of bias claiming undue influence at the trial. Both matters were heard in late 2013 and the decisions are still pending.

o With regard to a judgment that was granted in favour of the Bank">Workers Bank in the claim against the Bank for storage fees based on a storage agreement, the claimant is seeking to have the matter re-listed.

Financial Investigations Division

During FY 2016/17, the FID continued to actively pursue its mandate to reduce the incidence of financial crime in Jamaica, sharing information with its law enforcement counterparts at home and abroad, as well as conducting its own investigatory activities. The following are some of its key achievements:

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Ministry of Finance and the Public Service Fiscal Policy Paper 2017 80 | P a g e

 Facilitating the development of Regulations for financial holding companies and consolidated supervision under the Banking Services Act;

 Assisting in the implementation of the Action Plan of the FIS">NFIS;  Assisting in the various stages of the legislative process to develop appropriate legislation for

the enhancement of the resolution framework for financial institutions;  Continuing divestment of the remaining assets under FIS’s control;  Finalizing and resolving outstanding pensions and litigation matters for FINSAC;  Completing the audit for both FINSAC and FIS for the Fiscal Year ending March 2017;  Ensuring that the goAML application is instituted as quickly and as seamlessly as possible - to

include the training of compliance personnel in all financial institutions via a sector based schedule;

 Pressing for the passage of procedural rules for POCA and other required legislative amendments;

 Facilitating industry outreach to improve the quality of reporting from reporting entities, including those sectors that are viewed as over-reporting and those that are under-reporting;

 Working on developing more typologies and strategic studies on money laundering and terrorism financing trends in Jamaica;

 Making greater use of facilities to share information with foreign counterparts and law enforcement - this includes making better use of the FIU’s Egmont connections, the greater use of Mutual Legal Assistance Requests for investigations and the development of more formal information-sharing arrangements with domestic regulators and law enforcement bodies;

 Seeking better co-ordination of efforts among the FID, the Office of the Director of Public Prosecution (ODPP) and the various JCF branches to ensure that the FID is advised on a timely of feasible cases for post-conviction forfeiture;

 Focusing on proactive case development by investigators by the dedication of resources, better use of surveillance and research to develop high level targets. The Division will also focus on its JCF Liaison officers to work with JCF Operational Units to identify cases where proceeds of crime are likely to be identified for seizure and confiscation;

 Building the capacity of the FID’s lawyers to handle complex criminal money laundering cases;

 Building the capacity of the Asset Management Unit to manage and dispose of seized property by recruitment, training, as well as the settling of procedures for sale, particularly with respect to properties that are subject to a confiscation order emanating from a foreign court;

 Enhancing the Digital Forensics capacity of the Information Technology Unit and the requisite implementation of new Cyber Security policies and a new case management system;

 Renovating the FID’s infrastructure to enhance security, staff facilities and appearance.

June 12, 2021