Shelly-Ann Thompson, Staff Reporter

( L - R ) Hill, Hylton

An apparent decision has been taken by financial institutions to report as suspicious, all funds that come to them through what they describe as "unregistered o schemes", as allowed under the Money Laundering Act.

Such a move is believed to be having adverse effects on the operations of these unlicensed schemes, including the popular Cash Plus operation.

In fact, Cash Plus officials have pointed fingers at their bankers, who, they say, have changed the rules regarding the cashing of cheques which it issues to its clients.

Stipulations of act

The Money Laundering Act, in part, stipulates that it is a financial institution's duty to report a customer's account as a suspicious transaction and "pay special attention to all complex, unusual or large business transactions, or unusual patterns of transactions, whether completed or not, which appear to the financial institution to be inconsistent with the normal transactions carried out by that customer with the institution".

The Gleaner has obtained a copy of one of the circulars being issued to employees of a financial institution, which took effect on November 12.

The circular listed 10 "unregistered o schemes" that its employees should be on the alert for with regard to customers' transactions.

It stated in part: "We are requesting that potential customers who wish to use funds obtained from these 'unregistered o schemes' to establish relationships with any company within the group be referred to the compliance department or the writer for approval before the account is opened."

However, the Jamaica Bankers' Association (JBA) said it was unaware of the circular.

Patrick Hylton, president of the JBA, said nonetheless, the financial institutions are sticking by the provisions of the law.

"(I) can't tell members what to do," said Mr. Hylton, who is also group managing director of National Commercial Bank (NCB).

In fact, a statement by NCB issued under the signature of Mr. Hylton yesterday, to the media and employees of NCB, distanced that bank from "a conspiracy against certain institutions which receive funds".

"While we are legally constrained from discussing the specifics of any particular business relationship without the consent of the customer, we feel compelled to respond to these baseless accusations.

"Accordingly, we categorically deny our involvement in any conspiracy and wish to assure the public that NCB continues to operate within the context of sound banking practices and the regulatory environment which exists," Hylton said.

Subject to the provisions of the Act, it is the duty of a financial institution to make a report to the designated authority, which could either be the Bank of Jamaica or the Financial Investigative Division, if there is suspicion of money laundering.

Banks frustrating operation

Speaking with The Gleaner's Garwin Davis yesterday, Carlos Hill, head of the Cash Plus Group, suggested that the banks were frustrating his operation.

"We understand what is happening (with the banks)," he said, adding that "Jamaica is not the only country with financial institutions. We will alleviate all those problems starting in December."

In fact, Hill said that, as of December 1, Cash Plus will be issuing credit cards to its customers or will wire the money into their accounts from overseas.

On Wednesday, scores of investors in Cash Plus turned up at the company's office on Premier Plaza in St. Andrew, seeking information regarding their returns that were not forthcoming or were being deposited into their accounts beyond the designated time.

Going offshore

One customer of Cash Plus, Suzy Reid (not her real name), said even if she withdrew her money from the scheme she would not deposit her money again in a local financial institution.

Miss Reid, perturbed by the financial entities' decision, said she is taking her funds offshore.

"It's going to backfire on the banks. I am going to take a plane and take my money out. It's not going back to these banks," she said.

Other entities named in the circular included World Wise Partners Ltd. and Higgins Warner Music and Entertainment Ltd. The Financial Services Commission had, weeks ago, advised that these agencies are unregistered investment schemes.