Embattled money lending company, Alliance Financial Services Limited, has been suspended from operating as a cambio and remittance business, effective immediately.
The Bank of Jamaica (BOJ) has also revoked Alliance’s authorization to operate in the BOJ Fintech regulatory sandbox.
This became necessary given the charges laid on the principals of the company by the constabulary financial unit, following a probe by the Financial Investigations Division (FID).
The company, along with president, Peter Chin, and vice president Robert Chin, were charged yesterday, with various breaches of the BOJ act, the Banking Services Act, and the Proceeds of Crime Act.
A statement from the BOJ said Alliance was previously licensed to operate cambios at 5 locations, in Kingston and St. Andrew, St. Catherine, Clarendon, and Manchester.
Consequent to the suspension, Alliance Financial Services is no longer authorized to conduct the business of buying and selling foreign exchange. Alliance is also not authorized to continue offering money gram remittance services.
Customers utilizing money gram services may continue to do so at locations operated by other entities.
Additionally, with the revocation of the Fintech regulatory sandbox, Alliance is not authorized to operate as a payment service provider.
Current holders of the Alliance e-pay card will continue to utilize available balances on their cards, but will not be able to cash out or top up account balances.
Meantime, the FID, today provided more details on the various breaches, with which Alliance Investment Management Limited, and Alliance Finance Limited, along with their principals were charged.
The FID said the parties were charged with breaches of the Bank of Jamaica Act, the Banking Services Act, and the Proceeds of Crime Act.
The charges include ‘carrying on the business of lending foreign currency without being an authorized dealer’.
They relate to over 20 foreign currency loans, totalling approximately US $8 million, to various entities, and allegedly accepting deposits without the requisite license from the BOJ.
These breaches relate to a series of deposits, in excess of US $7.5 million, over the three-year period, 2014 to 2017.
Meantime, Alliance Investment Management Limited was charged with ‘failure to file threshold transaction reports’, breaching the Proceeds of Crime Act.
This relates to failing to file cash transactions of or exceeding, US $15,000 or its equivalent in any other currency, to the designated authority, that is, the chief technical director of the FID.
The FID reported that in 2018, a search warrant was executed on the offices of companies, within the alliance network.
During the search, several financial documents were seized and subsequently analyzed by the FID, and investigators from the constabulary financial unit.
The documents revealed that the companies possibly breached several laws.
A file was submitted to the office of the director of public prosecutions for a ruling, after which, charges were laid against the companies, and their principals, by the constabulary financial unit.
In commenting on the charges, FID’s Chief Technical Director Selvin Hay said the entity is focused on deterring the use of Jamaica’s economy for financial crimes, thereby contributing to a stable financial sector and an investor-friendly environment.
He is reminding all financial sector stakeholders of their responsibility to consistently function, in accordance with the provisions of various acts and regulations, which govern their operations.
He warned that by not adhering to the governing regulations, the financial sector becomes susceptible to the movement of tainted funds, for which the negative ripple effects are far-reaching.
He said the integrity of Jamaica’s financial sector must be maintained.