BOJ Developing Central Electronic Client Database

• The Bank of Jamaica (BOJ) is developing a central electronic database with Know Your Customer (KYC) information aimed at making it easier for clients to switch banks.
• Addressing the BOJ’s Quarterly Monetary Policy Press Conference on Tuesday (May 21), Central Bank Governor Richard Byles disclosed that 60% of deposits reside in two of Jamaica’s 11 deposit-taking institutions. He underscored that competition can be created by introducing new players in the sector or making it easier for customers of any bank to move their accounts.
• Byles said that at present, opening an account is a difficult and lengthy process due to the anti-money laundering and combatting the financing of terrorism (AML/CFT) policies in place. “In 18 to 24 months, we hope to have this in effect. The World Bank is working with us on it, but it’s going to take a lot of cooperation between ourselves and the commercial banks. What we’re going to be saying to them is that you need to take all of your data on every customer, and there are hundreds of thousands of customers, and put that data into this depository,” he added.
• Byles said banks will need to be assured that their customers’ data will be safe, secure, accessible and not open to cyberattacks, and “so any central depository will have to be like Fort Knox”. Fort Knox is the commonly used name for the United States Bullion Depository, which is a fortified vault building adjacent to the Fort Knox Army Post in the state of Kentucky. It is operated by the United States Department of Treasury and stores more than half of the country’s gold reserves.
• Meanwhile, BOJ Deputy Governor Dr. Jide Lewis shared that with very few documents, a customer should be able to enter any banking hall and have their identity digitally verified. “POCA, which is the Proceeds of Crime Act, was recently amended to allow banks to share KYC information. What this registry would do is just create a digital mechanism”, he added.

(Source: JIS)