Finance Minister, Dr. Nigel Clarke says the Jamaican government is moving to review the financial sector legislation to apply harsher penalties for breaches, following the multi-billion-dollar fraud at the investment firm, Stocks and Securities Limited (SSL).
He was speaking on Monday during a policy address on the financial sector at the Ministry of Foreign Affairs and Foreign Trade in downtown Kingston.
Clarke said the review will improve the country’s ability to detect, investigate, and prosecute financial crimes in the banking, securities, insurance, and pensions sectors, with amendments to the Securities Act, Banking Act, Insurance Act, and the Pensions Act.
“The discrepancy between sanctions for white-collar crime and other forms of crime must be erased. If you rob depositors, or you defraud investors and you put our financial system and our way of life at risk, the Jamaican society wants you put away for a long time; a long, long, time,” he warned.
He also said the government will require securities dealers to publish their financial statements and material events at standards equivalent to public companies on the Jamaica Stock Exchange.
The government is also moving to tighten regulations around connected party transactions for securities dealers and introduce a fixed penalty regime.
“Companies can be fined for AML (anti-money laundering), CFT (combatting the financing of terrorism), and other breaches. And if they don’t pay, they go to court,” said Clarke.
The finance minister said under the current regime, the authorities must take companies through the court procedure before imposing fines.
Nigel Clarke further said that the government will strengthen insider trading legislation to ensure the penalties and sanctions regime are “severe and dissuasive”.
He noted that the government will be working with international partners in the design of the reforms and be advised of additional reforms that may be necessary.
