The Editor, Sir:

The letter of December 29 titled 'Insurance and money laundering' continues to highlight the fact that many persons are quite unaware of the rudiments of money laundering, and more important, the inter-jurisdictional links between local, regional and international regulations and treaties to combat this scourge.

The writer was understandably flabbergasted at being asked for personal information, which she apparently believed was unnecessary even for a 'suspected' money launderer. What should have happened is that in her case, either her insurance agent or some functionary of her insurance firm, should have ensured that she understood the background and reason for the request for specific information. Were this effectively done, some of the misunderstandings ought not to have arisen.

Good banking practice

For example, considering that she was dealing with insurance, the Bank of Jamaica (BOJ) has no jurisdiction over that industry. It is the Financial Services Commission (FSC) which is the regu-lator of the insurance and securities and pension industries.

Neither the BOJ nor the FSC inherently has authority to make requests for personal information other than in line with good banking practice. It is the Proceeds of Crime Act (POCA) which directs the regulators of the financial services industry to ensure that certain best practices are carried out with regard to anti-money laundering and the counter-financing of terrorism in respect of the insurance companies, commercial banks, merchant banks, building societies, cambios, secu-rities dealers, pension funds and other business so designated under POCA and its regulations.

Prerogative

Finally, any such information that is required to be collected and or reported, is for the prerogative of the Financial Investigation Division (FID) and not the BOJ or FSC. The FID is an agency that is part of the Ministry of Finance and the Public Service.

It would serve us well if a concerted effort is undertaken by the pertinent ministries, regulatory agencies and advocacy groups to educate the public on this important national issue of money laundering and counter-financing of terrorism.

I am, etc.,

CHRISTOPHER PRYCE

christopherjmpryce@yahoo.com

Waterloo Avenue,

St Andrew