Compliance is an increasingly crucial requirement for microfinance institutions (MFIs) operating in Jamaica due to the proliferation of anti-corruption legislation. Local microfinance businesses, operating for at least 12 months and engaged with both domestic and foreign operations, must become and remain compliant to avoid a potential shutdown of their operations by Jamaica’s central bank, the Bank of Jamaica. In this blog post, we will provide a synopsis of how Phoenix International can help your MFI implement the technology to support your licensing and compliance journey.

How Phoenix International Supports your MFI:

Phoenix International is an experienced fintech partner in the local financial landscape, offering core banking and value-added solutions to financial institutions of all sizes. Our digital transformation solutions streamline operations for microfinance institutions, enabling effective lending and enhanced customer interactions. By partnering with us, your microfinance business can benefit from tools that facilitate digital and customer loan origination, loan management and collections, and compliance and reporting tools. These value-added lending products will help your MFI:

1. Increase the customer’s capacity to conduct remote transactions at any time of the day
2. Reduce lending and compliance costs
3. Improve loan issuance speed
4. Remain relevant, and benefit from ongoing fintech product development and maintenance support

Microfinance Compliance Requirements

1. The Proceeds of Crime Act (2007) outlines the necessary measures against money laundering and financial crimes. Phoenix International’s system compliments BOJ’s requirements under POCA, enhancing transaction monitoring and customer information management.
2. Risk-Based Framework: Microfinance businesses need tools to assess customer risk profiles. Phoenix offers capabilities to track these requirements, proactively protecting your business.
3. Transaction Monitoring and Reporting: Effective systems to monitor all transactions and detect unusual customer activity are essential. Key checklist items include:

– Screening all payment transactions (wire, remittance, etc.).

– Identifying and reporting suspended transactions.

– Accepting cash or cheque payments in various currencies.

– Validating cleared funds before processing.

Accessing Phoenix’s Simplified Microfinance Institution Compliance Guide:

Compliance is a vital aspect of running a successful microfinance business in Jamaica. Partnering with Phoenix International ensures your institution remains compliant while streamlining operations, improve customer satisfaction, and stays competitive in the industry. Let us help your microfinance business thrive by achieving and maintaining compliance with ease.

We have prepared a booklet titled, Get it right: A quick guide to getting your microfinance business Central Bank compliant, which maps the Bank of Jamaica’s regulatory requirements to the capabilities of the Phoenix International’s system. It also provides sanctions for non-compliance by microfinance institutions. Additionally, you’ll find FAQs specifically tailored to microfinance institutions, expertly developed by Phoenix International. To access the full booklet and learn how our digital tools can help implement these requirements seamlessly, click HERE.