Scotia Group Jamaica Limited said the handling of US cash was costly, resulting in the partial pass-through of the expense to customers in the form of foreign exchange spreads.
The Bank of Jamaica, which regulates the banking sector, said last month that while there were eight to ten international banks that provide correspondent banking services to Jamaican institutions, only Bank of America facilitated the physical movement of cash in and out of the country.
The result is an uncompetitive pricing regime.
The central bank expects Jamaica's removal from the Financial Action Task Force grey list to result in more foreign banks being willing to enter the space, and that competition would likely open up in the remitting of cash.
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