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Jamaica must talk up about “Remittance Squeeze,” says Jarrett

KINGSTON, Jamaica – Earl Jarrett, general manager, Jamaica National Building Society (JNBS) says it’s time for Jamaica to be more vocal on the global stage about establishing safe ways to facilitate remittances, given its contribution to the income of many developing countries.

His remarks came against the background of increasing global pressure on banks to restrict their business relationship with money service businesses. The ongoing issue recently resulted in the withdrawal of a major remittance company from the Cayman Islands, the Turks and Caicos and the Bahamas.

“Remittances are under threat and in many territories banks are refusing to bank remittance entities,” Mr Jarrett told the 552 members of JNBS attending the organisation’s 141st Annual General Meeting held at the Jamaica Pegasus in New Kingston last Wednesday (July 29).

“Remittances are the lifeline of migrant communities and Jamaica, with a Diaspora population of some three million, represents one of the largest recipients and, therefore, the country depends on remittance flows, which account for some 17 percent of our gross domestic product (GDP),” he remarked.

Remittances contribute about US$2 billion or some J$230 billion to the Jamaican economy annually; and, at some $404 billion in inflows to developing countries, according to World Bank figures, the value of remittances far outweighs the aid many developing countries receive from the first world.

“As a country we need to speak up loudly that we need to find safe ways for remittances to move around the world; and, not to create obstacles for migrant employees who are supporting families and the economy of Jamaica,” he underscored.

The JNBS boss maintained that its money services subsidiary, the JN Money Services Group (JNMS), which trades globally, has been continuously strengthening its systems and processes to mitigate fraud and other financial misdeeds.

Earl Jarrett, General Manager, Jamaica National Building Society, during his presentation to members at the Society’s 141st Annual General Meeting at the Jamaica Pegasus, July 29.
Earl Jarrett, General Manager, Jamaica National Building Society, during his presentation to members at the Society’s 141st Annual General Meeting at the Jamaica Pegasus, July 29.

He told members that during past financial year, the company invested heavily in risk controls, implementing ACL technology to ensure the organisation’s ability to monitor customers and transactions.

“The company has also engaged independent risk assessors, who have audited the operations of the entity; and, so far, have given the company a good bill of health,” he said.

Leesa Kow, General Manager, JN Money Services Limited. She is also President of the Jamaica Money Remitters’ Association.
Leesa Kow, General Manager, JN Money Services Limited. She is also President of the Jamaica Money Remitters’ Association.

Leesa Kow, the general manager of JNMS, who also represents remitters locally as the President of the Jamaica Money Remitters Association, also maintains that most businesses in the industry globally operate at the highest standard.

She noted recently that some banks globally have also been working with money services businesses to ensure they are fully compliant with anti-money laundering and countering of terrorism regulations.

“In addition, several money transfer businesses have taken steps to ensure that they meet the Know Your Customer and due diligence requirements, in order to comply with the regulations of the dwindling number of banks, which continue to do business with remittance companies,” Miss Kow said.

Notwithstanding the harsh regulatory environment, JNMS continues to contribute positively to the JN Group’s performance. And, during the 2014/2015 financial year, JNMS returned after tax profits of some $176.5 million. Its revenues grew by 10.3 percent to $2.2 billion.

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South Florida Caribbean News

The SFLCN.com Team provides news and information for the Caribbean-American community in South Florida and beyond.

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