To dodge AML woes, gov’t mulling brokers to dispose of confiscated properties

The Government of Jamaica will consider hiring real estate brokers to speed up the disposal of $1.5 billion in confiscated properties as a quick solution to avoid a downgrade by international anti-money laundering watchdogs.

The sale of the properties is currently being handled by an agency of the state, but so far the deals have been slow, according to Finance Minister Dr Nigel Clarke.

Because of their wider client reach, real estate brokers would be more capable of attracting prospective local and international investors and purchasers than the National Land Agency, NLA, he reasoned.

“Given the slow pace of sale of the assets, the level of unease by our foreign partners on this issue is imminent,” Clarke said during his presentation of the financing plan for the country’s 2024-25 Budget at the opening of the debate in Parliament on Tuesday.

The Financial Action Task Force, FATF, which monitors compliance with anti-moneylaundering and counter-financing of terrorism rules, or AML-CFT for short, will focus on the management of forfeited and restrained properties in its next evaluation of countries, Clarke said.

In the last “mutual evaluation of Jamaica”, the country got a “substantial rating” for asset forfeiture, but going forward the country also needs to demonstrate its ability to sell such properties, the minister reported to lawmakers.

“Jamaica needs to ensure effectiveness in not only forfeiting the assets, but disposal of them in a timely manner; failing which, the country will be downgraded from the coveted rating that it currently holds in asset forfeiture, which was only achieved by a few countries worldwide,” Clarke said.

The properties are located in Jamaica and overseas. Clarke added that the “revenue inflows from this activity is likely to be in the region of approximately $1.5 billion, based on the present value of the forfeited properties on the books” of the Financial Investigations Division.

That estimate factors in costs associated with the transactions, as well as the 40 per cent of the proceeds of the sale of those foreign-based properties to be remitted to the relevant jurisdictions. The sharing of such proceeds with the foreign government is in keeping with the Forfeited Property Act, the minister said.

steven.jackson@gleanerjm.com