The Financial Investigations Division (FID) has provided an update on the legal proceedings that involved Alliance Investment Management Limited (AIML), Alliance Finance Limited (AFL), and their principals.
In a release on Friday afternoon, following the dismissal of 17 criminal cases against AML and its former principals, Robert and Peter Chin, in court the day before, the FID said as follows:
Origin of the Case:
“The case originated from a 2018 search warrant executed on the Alliance network’s offices. This operation, led by FID and Constabulary Financial Unit (CFU) personnel, along with the Jamaica Constabulary Force’s (JCF) Fraud Squad, Major Investigation Division, Counter-Terrorism and Organised Crime Branch (C-TOC), as well as the Major Organised Crime and Anti-corruption Agency (MOCA), culminated in the seizure of financial documents indicating breaches of multiple financial legislations.
“Following detailed investigations by the FID and members of the CFU, several offences were identified. As a result, a file was submitted to the Office of the Director of Public Prosecutions (ODPP) for a ruling.“
Charges
“Following a ruling by the ODPP, Alliance Investment Management Limited (AIML), Alliance Finance Limited (AFL), their (the companies’) President, Peter Chin, and Vice-President, Robert Chin, were charged in December 2021 with various breaches of the Bank of Jamaica Act, the Banking Services Act, and the Proceeds of Crime Act.
“AFL and its President, Peter Chin, were charged with ‘carrying on the business of lending foreign currency without being an authorised dealer’ under Section 22A (2) of the Bank of Jamaica Act. The charges relate to several foreign currency loans totalling approximately USD$8 million to various entities.
“Meanwhile, AFL, President Peter Chin and Vice-President Robert Chin ,were charged with breaching Section 10 (1) (c) of the Banking Services Act, for accepting deposits without the requisite licence from the Bank of Jamaica (BoJ). These breaches relate to a series of deposits, which exceeded USD 7.5 million over a three-year period (2014 – 2017).
“Additionally, AIML was charged with 17 counts of ‘Failure to file Threshold Transaction Reports’ – Section 3 (1) of the Proceeds of Crime (Money Laundering Prevention) Regulations 2007. This relates to failing to file cash transactions of, or exceeding, USD 15,000 (or its equivalent in any other currency) to the Designated Authority, that is, the Chief Technical Director (Director General) of the Financial Investigations Division (FID).”
Results:
“In early 2022, following a guilty plea, AFL was sentenced to the following:
– A fine of $50,000 or nine (9) months’ imprisonment for each of 28 counts of ‘carrying on the business of lending foreign currency without being an authorised dealer’ under Section 22A (2) of the Bank of Jamaica Act.
– A fine of J$2.5 million or 12 months’ imprisonment for each of eight counts of breaching Section 10 (1) (c) of the Banking Services Act, for accepting deposits without the requisite licence from the BoJ.
“Based on the serious nature of the offences, the court imposed a significant fine totalling J$21.4million.
“The FID subsequently initiated and completed a criminal forfeiture investigation against AFL regarding its benefit from the offences for which it was convicted. The file is currently before the Supreme Court for forfeiture hearing later in 2024.”
Recent Developments:
“AIML presented documents in court purporting to support its claim that the reports were filed to the FID. This provided sufficient doubt in regards to three (3) of the reports, which resulted in the court upholding a no-case submission.
“The FID respects this ruling, but emphasises that it does not affect ongoing efforts to recover the full benefits obtained by AFL from the offences for which it was convicted.”
Continued Enforcement Efforts:
“The FID continues to work effectively with its law enforcement and regulatory partners to uphold the integrity of Jamaica’s financial sector. This collaborative effort, supported by these entities, continue to underscore our commitment to a multi-agency approach in combatting scourge of financial crimes.
“The FID is steadfast in its mission to deter the use of Jamaica’s economy for financial crimes. We remain dedicated to identifying, investigating and prosecuting financial crimes to protect our nation’s economy.
“We remind all financial sector stakeholders of their obligations to adhere strictly to the provisions of relevant Acts and regulations governing their operations. Failure to comply poses risks of tainted funds entering the financial system, with far-reaching negative consequences.”
