Jamaica struggles to tackle money laundering amid corruption, resource shortfalls: US report
Published:Saturday | April 5, 2025 | 12:08 AM
Jamaica’s efforts to combat money laundering are being undermined by severe resource constraints and systemic corruption, according to the latest International Narcotics Control Strategy Report (INCSR) from the US State Department.
The report identified organised criminal networks – some with ties to influential Jamaicans and key players in the real estate and used car sectors – as the primary drivers of money laundering in the country. It also highlights political and public corruption as critical enablers of these illicit activities.
According to the INCSR, the illicit proceeds fueling Jamaica’s underground economy are largely generated from narcotics and weapons trafficking, cybercrime, financial fraud schemes, extortion, and corruption. Many of these crimes, the report noted, specifically target United States citizens, particularly through fraud and lottery scams aimed at elderly victims.
The State Department also flagged significant cross-border criminal activity, including the trafficking of small arms and drugs between Jamaica, the United States, Central America, Europe, and Haiti, as a major source of illegal wealth.
In 2024 alone, Jamaica faced a wave of financial crimes – from lottery scamming and corruption to counterfeit goods and cybercrime. Yet, according to the Financial Investigations Division (FID), only 83 staff members were in place as of October 2024 – far below the division’s target of 230 personnel.
The FID did not respond to requests from The Gleaner for a comment on these staffing figures.
From January to October 2024, the FID reported 11 prosecutions and eight convictions for financial crimes, alongside the seizure of millions of dollars in criminal assets. The report also acknowledged Jamaica’s continued cooperation with the US in extraditing lottery scammers, many of whom target American seniors.
While the US recognised Jamaica’s increased enforcement of the Proceeds of Crime Act (POCA) and noted steady gains in convictions and asset forfeitures, it emphasised that prosecutorial challenges persist. These include underfunded law enforcement agencies and a judicial system stretched thin.
“Financial crimes are often plea bargained, or prosecutors focus on predicate offences to secure convictions,” the report said, noting that money laundering charges are sometimes dropped in exchange for guilty pleas on related crimes, though asset recovery might still be pursued.
PROGRESS MADE
Despite these hurdles, the report acknowledged some progress.
In 2020, Jamaica made a high-level commitment to the Financial Action Task Force (FATF) to bolster its anti-money laundering and counter-terrorism financing (AML/CFT) framework – and successfully completed its action plan in 2024.
The US also noted the rise in sophisticated banking fraud, a trend that further complicates enforcement efforts. In response, Jamaica amended the beneficial ownership provisions of the Companies Act in 2023 to align with global standards.
Still, a recent national risk assessment flagged real estate and used car sectors as vulnerable and under-regulated – a concern the government is now addressing in a new risk assessment.
As Jamaica works to tighten its regulatory framework and increase capacity, the INCSR underscored a critical message: without significant investment in enforcement and prosecution, financial crime will continue to erode public trust and fuel transnational threats.