DAVIES
JAMAICA NEEDS international help in dealing with the social aspects of money laundering, says Minister of Finance and Planning, Dr. Omar Davies.
Developing countries find it tough to get the resources to implement the 120 recommendations made by the financial action taskforce to deal with money laundering. But the most important issue for Jamaica, he said, is tackling the attractiveness to young males of membership in international criminal organisations.
"There are many aspects of the issues of money laundering and the financing of terrorism that are deeply troubling," Dr. Davies said. "These threats are insidious, with vicious criminal organisations penetrating and spreading their influence through countries' business and professional sectors, financial systems and even charitable organisations."
Despite this, the improvement in Jamaica's indicators of socio-economic progress has been used to justify its 'graduation' from qualifying for support from both bilateral and multilateral sources.
He said Jamaica and other areas of the Caribbean need assistance to tackle high levels of violent crime.
He was speaking at a meeting of ministers in the Caribbean Financial Action Taskforce last Friday at the Ritz Carlton Hotel in St. James.
"Sometimes crimes such as money laundering are not placed in the limelight because these financial flows are viewed as beneficial despite their sources," the minister said. "This is a fallacy. Money laundering can destabilise an economy through added costs, undermining of institutions, loss of business confidence, unfair competition, fundamental reputation damage to a country's international image, losses of revenue and control over monetary policies."
But the financial concerns do not compare with the social costs of dislocation with the loss of lives being the biggest burden.
Dr. Davies said, "countries whose populace fuel the demand for hard drugs have a strong obligation to attack these problems at the root."
Jamaica has already consolidated the regulation of the financial sector through the establishment of the Financial Services Commission, which oversees the non-deposit taking financial institutions including the insurance and pensions sectors. A new Insurance Act and a new Pensions Act replacement are in place.
