Licensees also have statutory responsibilities under other pieces of legislation the administration of which reside principally with other competent authorities (e.g. The Jamaica Deposit Insurance Corporation; The Financial Intelligence Division; the Department of Public Prosecution) :

	The Companies Act, 2004
	Deposit Insurance Act, 1998
	The Terrorism Prevention Act, 2005
	The Income Tax Act
	The Proceeds of Crime Act, 2007
Ministry of Justice

Proceeds of Crimes Act (POCA)-  This Act was passed by Parliament in March 2007 and came into effect on May 30, 2007.   POCA is a wide-ranging legislation that targets benefits derived from the commission of any crime, and incorporates the concept of money laundering as well as introduces the principle of civil procedure.

With the passage of POCA the Drug Offences (Forfeiture of Proceeds) Act, Dangerous Drugs Act, Money Laundering Act, 1996, and the Money Laundering Regulations, 1997 have been effectively repealed and replaced.

LEGISLATIVE AMENDMENTS AND DEVELOPMENT OF SUBSIDIARY LEGISLATION

On-going review of the legislative framework is a necessary and fundamental step in achieving supervisory policy and developmental objectives, especially given the dynamism in local and international markets and the evolving nature of international best practice standards in banking supervision. In this regard, the Bank of Jamaica is involved in a number of initiatives for amendment of legislation and development of related regulations as follows:

  Credit Classification/Provisioning Regulations - The Bank is undertaking a comprehensive re-draft of proposed Regulations which address loan accounting, credit classification and loan provisioning requirements. This review will take account of developments in international standards such as the Basel Core Principles, the BASEL Standard for Sound Credit Risk and Valuation for Loans as well as impairment requirements prescribed under the International Financial Reporting Standards (IFRS) to achieve greater convergence in regulatory and accounting provisioning methodologies.

  Qualifications of Auditors Regulations - Regulations that specify expectations for auditors in undertaking an external audit of a supervised financial institution, have been drafted and are with the Minister of Finance for approval. Among other things, the criteria specified in these regulations relate to the independence, experience and academic qualification of the external auditors. These proposed regulations would also require prior notification to the Bank of Jamaica of proposed appointments. The Bank of Jamaica would also be empowered to object to the appointment of an external auditor if, in the view of the Bank of Jamaica, there is evidence that such auditor is not in compliance with the provisions of the regulations.

  Bank of Jamaica (Credit Unions) Regulations - Regulations to establish the supervisory regime that will be applicable to credit unions have been drafted. These regulations will, among other things, prescribe prudential criteria and minimum solvency standards covering, inter alia, essential areas such as capital adequacy, liquid assets, credit and provisioning, submission of financial statements and remedial action that can be taken by supervisory authorities with respect to problem credit unions. The draft Regulations have benefited from extensive dialogue with the credit union sector and are pending presentation to Parliament by the Minister of Finance.

  Omnibus Bill - The Bank is in the process of reviewing legislation governing the operations of deposit-taking entities (i.e. the Banking Act, Financial Institutions Act and the Building Societies Act) with a view to consolidating these pieces of legislation into one consolidated statute. In so doing it is intended that any existing inconsistencies between these statutes will be removed and this will ensure a more synchronized progression of updates to the laws governing the deposit-taking taking industry. This initiative is also intended to implement enhancements that will bring the regulation of the banking sector in line with the recently issued Revised Basel Core Principles on Banking Supervision as well as to ensure that the relative provisions in relation to consolidated and conglomerate supervision are appropriately robust. Revisions to the financial legislation will also focus on current issues such as outsourcing, as well as the proposed role of credit bureaux, provisions for electronic reporting and enhancing powers as regards the investigation and prosecution of illegal deposit taking activities. Currently the Bank is finalizing a working paper on the matter which will inform the subsequent submission to Cabinet that will follow to commence the legislative process.

   The Financial Investigations Division Bill - The BOJ by virtue of its chairmanship (at the request of the Minister of Finance) of the Task Force on Financial Crime has been involved in the development of a law to govern Jamaica’s Financial Intelligence Unit (FIU), namely the Financial Investigations Division (FID). When passed the FID legislation will, among other matters, establish the FID on a statutory basis thereby increasing the independence of this Unit and facilitating the Unit’s admission to membership of the Egmont Group (the international body of FIUs); expand the investigative tools available to the FID for the investigation of suspected financial crimes; and establish specific penalties for non-compliance with directives or requests for information issued by the FID. The Bill was tabled in Parliament in November 2008.

  Building Societies (Licences) Regulations - The Building Societies (Licenses) Regulations are being amended to harmonise the licensing fees payable by building societies on the granting of a license and annually, with the rates applicable to commercial banks and FIA licensees.

  Terrorism Prevention (Reporting Entities) Regulations - These Regulations will be promulgated under the Terrorism Prevention Act and will outline the operational controls that must be maintained by financial institutions particularly when contemplating the commencement of a business relationship or one-off transaction. As such, these regulations will therefore largely mirror the Know Your Customer (KYC) obligations contained in the regulations under the Money Laundering Act and will therefore require financial institutions to establish and maintain appropriate procedures in relation to identification, record-keeping (minimum 5 years retention period), internal controls, communication, and training of employees. These Regulations will also prescribe the requisite Declaration Forms for transactions which the reporting entity knows or suspects as constituting a terrorism offence; and for the quarterly reports as to whether or not the reporting entity is holding property in respect of a person who is on the United Nations list of designated terrorists or in respect of a person who has links with terrorists or terrorist groups or organizations.

  The Credit Reporting Bill – A Credit Reporting Bill was tabled in Parliament in July 2008. When passed, this legislation will legally establish a credit reporting system in Jamaica which is designed to improve credit assessment processes, and facilitate enhanced risk management and loan pricing strategies throughout the financial sector. A licensing system will be imposed on persons who intend to offer credit reporting services, and prescribed reporting processes are outlined to ensure the objective and standardized reporting of credit information under this regime. Persons offering credit reporting services will be subject to oversight by the Regulator which will be the Bank of Jamaica.