+ jamaica money remitters association assessing the impact of the lottery scam on the remittance...
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Jamaica Money Remitters Association
Assessing the Impact of the Lottery Scam on the Remittance Sector Lottery Scam Forum
Terra Nova All Suites Hotel November 7, 2012
+Overview
Remittance businesses targeted because of quick and convenient services
Scams have resulted in suspension of services at
a number of locations over the past two years. Most recent in August
2012.
+Horizontal Growth of Lottery Scam
Scammers now routing funds
through postal and courier services
Victims purchase and ship electronics & appliances which
are then sold by scammers for cash
+Impact on Jamaica’s Reputation
Efforts to eradicate the scam need strengthening
Scam makes Jamaica unattractive to Diaspora and potential international investors
Tourism threatened by violent crimes directly linked to scam
+What the JMRA is Doing
Supports national initiatives to fight the lottery scam
Facilitates dialogue with members & key
stakeholders; creates an
environment where strategies are shared
Lobby for implementation of
legislation
Press for stronger systems to detect
fraud
+Impact on Remittance Companies
Increased expenditure on human resources and technology to improve
scrutiny of transfers
Continual, costly compliance/operations procedure adjustments which result in delays
for customers
Stricter compliance procedures compromise customer service
+Impact on Remittance Companies cont’d
Stricter compliance measures anger customers and scammers who sometimes respond violently to frontline employees
Increased costs to protect employees and property and to provide counselling
Increased overall costs on security, compliance, human resource affect bottom line
INCREASED COSTS
+Impact on Remittance Companies cont’d
Reduced profits- which may discourage operators and result in businesses winding up operations
Exposes remittance agencies to hefty fines.
Closure of remittance outlets could worsen the impact on other businesses, reduce competition from which customers benefit, and lead to the re-emergence of informal markets
REDUCED PROFITS
+Social Dependence on Remittance CompaniesQuick, safe and convenient access to money transfers
Three out four people use money transfer agents only
Some 34 percent of adults do not have bank accounts
Remittance used to purchase food; access healthcare; pay utility bills; finance education
Source: BOJ 2010 survey on Remittances to
Jamaica
Money Transfer Methods Used
+Where Do We Go From Here?
Fast track legislation,
particularly the implementation of the Evidence Act to facilitate
victims’ testimony by
video
Make the lottery scam/ advance fee payments a crime with its
own consequences
under law
Implement an Integrated
identification verification
system
+
The End
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