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By Javaughn Keyes
The Bank of Jamaica has suspended the money remittance operating licence issued to Paymaster (Jamaica) for operating as a “money remittance principal agent”.
The move will take effect from July 5, the central bank said in a notice on Wednesday.
The BOJ said this means the payer is “no longer authorised to provide remittance services as a principal agent”.
It is not clear which international money transfer entity has suspended the service, but Paymaster has provided overseas money transfer services for Ria, MoneyGram, Boss Money and Xoom by Paypal over the years.
The central bank said that “nineteen (19) Paymaster outlets holding the title of “Main Agent” will not provide remittance services”.
Paymaster has more than 60 locations nationwide.
However, the company said Paymaster will continue to operate as a sub-agent of the six remittance master agents and will therefore provide remittance services through these sub-agent arrangements in 47 locations.
The BOJ added that Paymaster remains authorized to test its MyCash mobile wallet in the Bank of Jamaica’s fintech regulatory sandbox.
MyCash can continue to use payment services, except for the “Pay Incoming Remittance to Wallet” feature.
Teller Response
In response, Paymaster said the suspension was related to “violations of Paymaster’s record-keeping requirements.”
However, the company said the suspension only targeted a small part of its business, specifically major agency services provided to a single overseas supplier.
The company clarified that all its outlets are still providing remittance services to Lasco and JMMB Money Transfer.
Paymaster said it “notified the Bank of Japan of the issue” after the error occurred in its system and has been in communication with the central bank since then.
The statement said “this is the first time (these banks) have been notified of immediate suspension of operations by the Bank of Japan due to non-compliance.”
Paymaster said it takes the matter very seriously and is fully committed to understanding and addressing the issues raised by the BOJ.
The company’s bill payment service will also not be affected.
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