London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Jamaica National to explore banking licence in Cayman

Jamaica National to explore banking licence in Cayman

The loss of correspondent banking relationships and escalating costs for its remittance-service business have prompted Jamaica National Group to set up a commercial banking arm in the UK and investigate the possibility of launching a bank in Cayman.
Jamaica National’s chief executive officer Earl Jarrett said at the group’s annual general meeting last week that the correspondent banking crisis has significantly increased the cost of operation.

In the group’s annual report Jarrett wrote that Jamaica National has struggled to maintain correspondent banking relationships for JN Bank and its representative offices overseas, as well as JN Money Services, the remittance company that also operates in Cayman.

Money transmitters accept payments and bundle them together but need a bank to handle the international wire transfer. Banks, however, consider money-transfer operators high-risk clients. Because anti-money laundering regulations and fines have increased significantly in recent years, adding compliance costs and reputational risks, many banks have decided to cut ties with remittance-service providers, in a process known as de-risking.

In 2015, Jamaica National, which operated MoneyGram and several other cash-transfer brands in Cayman, lost its correspondent bank, Cayman National Bank.

JN Money Services experienced a 42% increase in banking costs in the UK over four years, while in the Cayman Islands, the cost rose by more than 1,000% over the past five years, Jarrett noted.

He said the company spent “an alarming” GBP2.3 million (US$2.96 million) and CI$2.8 million since the correspondent banking services were lost in both markets. In response the company had only applied very limited increases in transaction fees.

The increased costs could not be passed on to customers, Jarrett wrote, because it would have made the remittance entity uncompetitive.

To deal with the crisis Jamaica National is seeking to establish a commercial bank in the UK.

“The objective of the bank, JN Bank UK, is to provide banking services to the Caribbean Diaspora and the wider customer affinity base of Caribbean people in the UK, as well as, in time, offer deposit and savings and loan products to the wider UK market,” the chief executive officer said in the annual report.

The bank, which will be based in Brixton, London, is expected to launch in the first quarter of 2020.

In Cayman, this option is currently only being explored.

Since 2015, when money transfers from Cayman to Jamaica fell sharply as a result of the ‘de-risking’ crisis, remittances have increased again from US$101.6 million in 2016 to US$133.2 million in 2018, statistics from the Cayman Islands Monetary Authority show.

JN Money Services processed 1.35 million remittances worth US$374.8 million last year, a 9% growth.

In addition to its remittance business in Cayman, Jamaica National also provides deposits, savings and mortgages through JN Cayman, which returned “a modest profit of CI$134,000”. Growth was restricted by local requirements that there is a commensurate ratio between loans and deposits, the group’s annual report said.
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×