Trinidad and Tobago’s Financial Institutions Face Consequences for Non-Compliance with AML/CFT Regulations

Financial institutions in Trinidad and Tobago have been issued a stern warning by the Financial Intelligence Unit of Trinidad and Tobago (FIUTT): Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) compliance is not an option.

Failure to Comply with AML/CFT Legal Obligations

According to FIUTT, failure to comply with AML/CFT legal obligations will result in enforcement action. The consequences of non-compliance are severe, with both business and regulatory risks at stake.

Risks of Non-Compliance

• Significant losses: A financial institution or listed business that facilitates or engages in money laundering can suffer significant losses, including damage to its reputation and potential criminal penalties.
• Regulatory sanctions:
  • Monetary fines
  • Loss of license
  • Enhanced monitoring measures by the regulator

Legal Framework

The Proceeds of Crime Act, the FIU Act, the Anti-Terrorism Act, and their regulations outline various AML/CFT offences and penalties. According to a recent publication by FIUTT, Supervised Entities should be aware of specific offences that carry serious consequences, including fines, imprisonment, or both.

Prioritize Compliance

In light of these risks and potential penalties, financial institutions in Trinidad and Tobago are advised to prioritize compliance with AML/CFT regulations to avoid severe business and regulatory consequences. By doing so, they can protect their reputation, minimize losses, and maintain a strong regulatory footing.