Church leaders challenge BOJ cheque phase-out

Two church leaders are taking the Bank of Jamaica (BOJ) to court, accusing the central bank of overstepping its legal authority and breaching Jamaicans’ constitutional right to equitable treatment in its push to phase out cheques.

“The policy of the respondents to eliminate the use of cheques as outlined represents a direct assault on our right to effect transactions via the chequing system, which is integral to everyday life in Jamaica,” said Pastor Jeffrey Shuttleworth, one of the applicants.

Shuttleworth and Bishop Basil Hanson are seeking permission from the Supreme Court to pursue judicial review of a decision by BOJ Governor Dr Brian Langrin to discontinue the processing of cheques valued at $1 million or more through the Automated Clearing House (ACH) system.

A hearing has been scheduled for October 7.

“We are public-spirited citizens of Jamaica, fighting to ensure that citizens are not taken advantage of by the organs of the State,” Shuttleworth said in his affidavit.

Shuttleworth, a lead member of Freedom Come Ministries International (FCMI), and Hanson, a lead member of the Association Christian Communicators and Media (ACCM), want the court to declare the policy illegal, null and void, arguing that it breaches section 27 of the Bank of Jamaica Act.

They are also asking the court to declare the decision irrational and in breach of section 13 (3)(h) of the Charter of Fundamental Rights and Freedoms, which they contend guarantees equitable treatment by public authorities in the exercise of their functions.

The applicants want the court to issue an order of certiorari quashing the decision and to stay its implementation. They are also seeking costs and any further orders the court considers appropriate.

The application, filed on September 28 in the Supreme Court’s Civil Division by attorney-at-law Hugh Wildman on behalf of the applicants, names Langrin and the Bank of Jamaica as respondents.

According to the court documents, the policy took effect on September 1, with cheques valued at $1 million or more no longer being accepted through the ACH system.

The applicants further claim that the phase-out is being implemented in stages, with cheques of $500,000 or more to face similar restrictions by March 2027, followed by further reductions before cheques are eliminated completely by March 2028.

In his affidavit, Shuttleworth said he and Hanson, along with members of the organisations with which they are associated, regularly use cheques to conduct business, pay bills and settle debts.

He argued that the policy would directly affect members of their organisations and wider communities.

DIRECT ASSAULT

Shuttleworth described the cheque phase-out as a “direct assault” on their ability to conduct transactions through the cheque system, which he said remains an important part of everyday commercial activity in Jamaica.

The applicants contend that the BOJ policy effectively favours people who use electronic banking over those who continue to use cheques.

They argue that such treatment amounts to inequitable treatment by a public authority and therefore breaches constitutional protections.

At the centre of the case is the applicants’ contention that the BOJ does not have the legal authority under Section 27 of the Bank of Jamaica Act to declare cheques obsolete or redundant.

They argue that, while the central bank has regulatory responsibility for Jamaica’s banking and monetary system, its powers do not extend to eliminating cheques as a recognised means of settling debts and conducting transactions.

The applicants also maintain that they have a sufficient interest in the matter because they personally use cheques and represent members of organisations who do so.

They describe themselves as “public-spirited citizens” seeking to ensure that the rights of Jamaicans are not infringed by State agencies.

The BOJ has set March 2028 as the target for the complete discontinuation of cheques, with the transition being implemented in phases in favour of electronic payment methods.

Several commercial banks, including Bank of Nova Scotia Jamaica Limited (Scotiabank) and First Global Bank Limited, have notified customers that cheques valued at $1 million or more would no longer be accepted from September 1.

Tax Administration Jamaica (TAJ) has also announced that it will stop accepting and issuing cheques by March 2028, in keeping with the new procedures being implemented by the BOJ and commercial banks.

TAJ began its phased withdrawal on September 1, including the discontinuation of cheques from government entities and manager’s cheques valued at $1 million or more.

tanesha.mundle@gleanerjm.com