IN the midst of the usually festive Christmas season, sections of the financial sector in Jamaica continue to reel from a fallout caused by the central bank’s decision to suspend the remittance and cambio licence of Alliance Financial Services Limited (AFSL).

A news release from a publicist for Alliance states that the fallout involves job losses at businesses run by agents and subagents of Alliance, shuttering of cambios, failed efforts to send remittances to Jamaica and bitter complaints about long lines at alternative locations which customers of Alliance’s agents have been forced to use. The disruption in the sector and challenges being experienced with remittance inflows have also generated fears about the potential impact on government revenue.

The Bank of Jamaica made the decision after Alliance Financial Limited was charged by the Financial Investigations Division (FID) with breaches of the Bank of Jamaica Act, the Banking Services Act and the Proceeds of Crime Act (POCA). The initial charges relate to transactions allegedly conducted in foreign currency.

The POCA charges, which have resulted in the suspension of Alliance’s cambio and remittance licence, are in connection with what the FID says is the alleged failure of the entity to report to authorities several transactions, a claim which Alliance’s legal team say they have strong evidence to reject as false.

But even as court proceedings — which are hearing arguments concerning a push by Alliance to have its licence restored and the sanction imposed by the BOJ rescinded — continued last week, several moneygram cambio operators, along with agents and subagents of Alliance, are crying foul and lamenting the disruption in the sector which the licence suspension has invoked, the release states.

“The licence suspension has caused my two locations to shut down totally – 10 staff members have been made redundant, customers are complaining bitterly about long lines and lack of money at other moneygram locations. My company is unable to meet financial obligations due to lack of income, and the crowd at other remittance agencies have expanded. All this is happening in the midst of global and national concern about a more transmissible variant of COVID-19. It’s a recipe for disaster,” one agent said on condition of anonymity.

Another cambio dealer based in Clarendon, who also asked not to be named due to fear of victimisation, also rued what he described as the severe implications of the suspension of Alliance’s cambio and remittance licence on the sector.

“The disruption in our operations in the past weeks has significantly affected our business brand and our customer base. Our customers are frustrated. It is with a heavy heart that we turn away hundreds of customers daily. Many customers have expressed their inability to pay bills and buy food for their children. They have had to travel days upon days unable to collect their money. It is a bitter pill to swallow,” the agent said.

“Our elderly customers are the most affected and are not as understanding of the matter at hand since they depend on money from their relatives to cover medications, doctor bills and supply their basic needs,” he added. “We have had to lay off our employees, many of which are sole breadwinners for their families. I can only imagine how they are coping not know[ing] if they still have a job. As for me, I don’t know how my bills will be covered.”

A cambio operator in Manchester also rued what he described as the likely premature and debilitating impact that the central bank’s action has had on the sector.

“The development has devastated my business in Christiana. Customers from as far as Trelawny have had to seek alternative sites to do business, oftentimes the nearest site being in an entirely different parish. Valued employees have been put on standby due to the situation,” said the agent, who also asked not to be named.

“Preparations had been made for a hectic Christmas season, including the purchasing of two new computers with which to process the transactions. I now fear that extra expense to fully meet the demands of the Christmas clientèle may have put the business at a loss,” he said. “The community at large is reeling from the absence of what has become a trusted site for remittances, and many individuals have expressed their dissatisfaction at the entire situation.”

In western Jamaica, an Alliance agent described the current climate in the sector as a nightmare. “This has been rough, very rough on us in a time like this with COVID. My customers are very disappointed, my staff have to be laid off. It pains my heart. There are bills to be paid. We sit by daily and watch our clients leave — hundreds per day. This is really sad. Every day it gets more gloomy. Myself, my customers, my staff have been significantly affected. This is like a nightmare that you just can’t wait to wake up from,” the agent said.

An Alliance agent in Kingston said that his losses have been major.

“We have incurred losses over the period of approximately 50 per cent of total revenue during what would be the most busy time of year. Customers have been greatly inconvenienced. With fewer agents, wait times to access monies has been upwards of four hours. They have called and visited, arguing with staff,” the agent said as he called for a quick resolution to the dispute between Alliance and the FID.

Alliance directors Peter and Robert Chin are to appear in the Kingston and St Andrew Parish Court in January in connection with the charges laid by the FID.

Alliance and its directors are being represented by Queen’s Counsel Tom Tavares-Finson in connection with the charges.

The entity’s legal team, which is contesting the licence suspension in civil court, is being led by Hugh Small, QC, while Queen’s Counsel Michael Hylton is acting on behalf of the financial sector regulators.