New Laws Needed to Fine Banks that Breach ABM Standards – BOJ

The Governor of the Bank of Jamaica, Richard Byles, says without the requisite legislative mechanism in place, the BOJ cannot proceed to fine those deposit taking institutions that fall foul of the minimum service standards for automated banking machines, ABM.

Mr. Byles was speaking on Nationwide This Morning.

The central bank governor says that until the relevant law comes to pass, the entity lacks the authority to impose monetary sanctions on those banks who do not play by the new ABM operating rules.

On Tuesday the BOJ published service standards for the operation of ABM.

Those standards lacked a provision preventing banks from charging customers for unsuccessful transactions at ABM. Mr. Byles says this was an oversight that will be addressed.

Meanwhile, the BOJ says non-adherence to the standards may give rise to supervisory concerns around safety and soundness, with the attendant supervisory consequences. 

Mr. Byles explained that it’s in the best interest of the banks to comply and preserve their good relationship with the BOJ.

Richard Byles, governor of the Bank of Jamaica.

All deposit taking institutions have nine months to get their house in order to meet the new service standards.