Bank of Jamaica

Supervisory Guidance Notes & Reporting Requirements

Standards Of Best Practice

As part of its on-going effort to promote principles of sound corporate governance within the supervised deposit-taking community, the Bank of Jamaica has since the mid 1990s, developed and circulated to the industry, Standards of Best Practice in critical areas of licensee’s operations. Essentially, these ‘Standards’ provide clear guidance on supervisory expectations of Board and management in implementing appropriate systems to assess, measure, monitor and mitigate risks in identified operational areas. The Standards issued are:

	Capital Management (issued 1995)
	Credit Risk Management (issued 1995)
	Liquidity Risk Management (issued 1995)
	Securities Portfolio Risk Management (issued 1995)
	Interest Rate Risk Management (issued 1996)
	Foreign Exchange Risk Management (issued 1996)
	Internal Control (issued 1996)
	Real Estate Appraisal Management (issued 1996)
	The Management or Investment of Customers' Funds (issued 2002)
	Guidance Notes on the Detection and Prevention of Money Laundering & Terrorist Financing Activities (Revised 2009)
	Fit and Proper Guidelines (issued 2004) (revised December 2010)
	Country and Transfer Risk (issued 2005)
	Standard of Best Practice for Effective Corporate Governance (issued 2008)

Note:

Guidance Notes for the Prevention and Detection of Money Laundering and Terrorism Financing Activities

The AML/CFT Guidance Notes were comprehensively revised in March 2009 to incorporate the provisions of the Proceeds of Crime Act (POCA) and the POCA (Money Laundering Prevention) Regulations which were promulgated in 2007. The revisions also took into account industry feedback, and in accordance with the requirements of Section 94 (7) of POCA, the completed Guidance Notes were approved by the Ministry of National Security on 22 April 2010 and gazetted.

The Management or Investment of Customers’ Funds

This Standard gives effect to the statutory requirement (in accordance with legislative amendments in 2002) for each licensee to legally separate its deposit-taking activities from its off-balance sheet activities viz. managed funds operations and securities dealing. The Standard outlines the required framework for the orderly process of transfer or disposal of institution’s managed funds operations during the transition process, as well as delineates operational boundaries for separation of Trust facilities that are permissible under the Standard. Separation was deemed necessary to prevent the possible co-mingling of on-balance sheet deposit-taking operations with funds management activities, in light of the exponential growth in reported managed funds operations since 1995 vis-à-vis traditional banking activities, particularly at merchant banks. The separation exercise should mitigate the liquidity and other risks associated with co-mingling as well as facilitate the clear demarcations in supervisory responsibility of the Bank of Jamaica and the Financial Services Commission. As at 30 September 2003, all required separation exercises had been completed.

Prudential Reporting Requirements
Consistent with the Bank of Jamaica’s prudential reporting requirement regime, and in order to facilitate ease of data collection and compilation, specific schedules and returns have been developed and circulated, along with pertinent Explanatory Notes to the industry. (The Central Bank has also made available to the industry a browser based application to enable the electronic submission of the returns) These returns along with their reporting frequency are detailed in the table below.

Prudential and Other Return Data Required To Be Submitted By Licensed Deposit-Taking Institutions to the Bank of Jamaica


	RETURN NAME	REPORTING FREQUENCY	INSTITUTION TYPE
1	Balance Sheet and Supplementary Information	Weekly	Commercial Banks
2	Claims on and Deposits of Selected and Other Public Entities	Weekly	Commercial Banks
3	Return of Foreign Currency Deposits	Weekly	Commercial Banks
4	Balance Sheet and Supplementary Information	Monthly	Commercial Banks FIA Licensees Building Societies
5	Domestic Currency Cash Reserve and Liquid Assets	Monthly	Commercial Banks FIA Licensees Building Societies
6	Return of Foreign Currency Cash Reserves and Liquid Assets	Monthly	Commercial Banks FIA Licensees Building Societies
7	Profile of Credit and Deposits by Customer Group	Monthly	Commercial Banks FIA Licensees
8	Sectoral Return of Customers’ Liabilities in respect of Total Loans, Advances and Discounts	Monthly	Commercial Banks FIA Licensees Building Societies
9	Sectoral Return of Customers’ Liabilities in respect of Foreign Currency Loans, Advances and Discounts	Monthly	Commercial Banks FIA Licensees Building Societies
10	Foreign Currency Assets and Liabilities	Monthly	Commercial Banks FIA Licensees Building Societies
11	Distribution of Deposits by Class and Maturity	Monthly	Commercial Banks FIA Licensees Building Societies
12	Interest Rates Paid on Total Deposits and Loans	Monthly	Commercial Banks FIA Licensees Building Societies
13	Interest Rates Paid on Foreign Currency Deposits and Loans	Monthly	Commercial Banks FIA Licensees Building Societies
14	Instalment Credit	Monthly	Commercial Banks FIA Licensees
15	Analysis of Foreign Currency Deposit Flows	Monthly	Commercial Banks FIA Licensees Building Societies
16	Claims on and Deposits of Selected and Other Public Entities	Monthly	Commercial Banks FIA Licensees Building Societies
17	Foreign Currency Claims on and Deposits of Selected and Other Public Entities	Monthly	Commercial Banks FIA Licensees Building Societies
18	Update on Credits and Investments Exceeding Section 13 Limits	Monthly	Commercial Banks FIA Licensees Building Societies
19	Renegotiated Facilities	Monthly	Commercial Banks FIA Licensees Building Societies
20	Earnings and Expenditure	Quarterly & Annual	Commercial Banks FIA Licensees Building Societies
21	Connected Persons Exposure	Quarterly	Commercial Banks FIA Licensees Building Societies
22	Return of Quarterly Financing for Fixed Capital Investment	Quarterly	Commercial Banks FIA Licensees
23	Details of Past Due Loans	Quarterly	Commercial Banks FIA Licensees Building Societies
24	Maturity Profile of Financial Assets and Liabilities	Quarterly	Commercial Banks FIA Licensees Building Societies
25	Breakdown of New Mortgage Advances	Quarterly	Building Societies
26	Sectoral Profile of Past Due Loans	Quarterly	Commercial Banks FIA Licensees Building Societies
27	Capital Adequacy	Quarterly	Commercial Banks FIA Licensees Building Societies
28	Repricing Gap Analysis	Quarterly	Commercial Banks FIA Licensees Building Societies
29	Customer Concentrations	Quarterly	Commercial Banks FIA Licensees Building Societies
30	Investment Profile	Quarterly	Commercial Banks FIA Licensees Building Societies
31	Return of Branch Information	Annual	Commercial Banks FIA Licensees Building Societies
32	Return of Land Acquired in the Satisfaction of Debts	Annual	Commercial Banks FIA Licensees Building Societies
33	Return of Unclaimed Balances	Annual	Commercial Banks FIA Licensees Building Societies
34	Annual Questionnaire	Annual	Commercial Banks FIA Licenses Building Societies

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