That is no problem for the scammers in St James which has 42 money transfer agencies

MONITORING THE complex and sometimes overwhelming Montego Bay lottery scam is not a simple task for remittance companies and their agents.

"You'd have to watch it and try to fathom it out," says attorney-at-law and former secretary of the Jamaica Bankers' Association Shirley-Ann Eaton.

By law, the companies are required to report any transaction that they deem suspicious to the Financial Investigation Division as well as to their head office.

Suspicious transactions include any unusual rise in remittances going to any particular agency or parish.

Remittance services and money transfer companies, like other financial institutions, are governed by the Proceeds of Crime Act which places a reporting threshold of US$5,000 on any transaction with these agencies.

"The thing is we don't know if the remittance services have reported it. But do I think they would have? Probably," says Eaton who notes that by law such reports would be held confidential.

When scammers use multiple agencies and multiple receivers, that's the one sure way to spot a possible fraud, she says.

Using multiple collection outlets is no problem for the scammers in St James which has 42 money transfer agencies most of which are in Montego Bay.

Remittance money

"But this is a small damn country and each agency knows how much money comes in on a weekly basis," Eaton says.

According to Eaton, while it is likely that most agencies submit these reports, the overwhelming nature and complexity of the scam might make it difficult for the authorities to stamp it out.

The scammers use a number of methods to collect their money, including using multiple receivers and having the money wired through relatives and friends to ease suspicion.

"You see the problem is that it is not the same sender. (If it were) it would be easy to pick up. All you would have to do is over time you see something come in from this sender you just - throughout the whole island - flag it. So when the people come in, you can actually apprehend them," she says.

"If you are using different people to collect it as well, that is a problem ... It's not a simple investigation," Eaton adds.

gareth.manning@gleanerjm.com

Pay special attention to all complex or large business transactions, which are being carried out by the customer and unusual transactions whether they have been completed or not which appear to be inconsistent with the normal transactions carried out by the customer.

If you are conducting any kind of wire transfer, you have to ensure that you include in your records accurate and relevant information on the funds transferred and the whole payment chain including the correct name and address of the sender and recipient and any other relevant reference numbers and instructions that are given in relation to the transfer.

The law allows you to raise questions about any transaction of US$250 and over with the receiver.