Trinidad and Tobago’s Financial Sector Under Scrutiny: Lack of Proper AML/CTF Policy Raises Concerns
======================================================
A recent assessment has revealed that Trinidad and Tobago’s financial sector is plagued by a lack of proper Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policy, leaving the country vulnerable to illicit activities.
Lack of Adequate Laws
Experts have pointed out that the sector lacks adequate laws to address money laundering and terrorist financing, making it difficult for regulatory bodies to effectively monitor and supervise financial institutions. The assessment also found that there is no targeted risk assessment for entities in the sector, further exacerbating the problem.
Central Bank’s Supervisory Regime
The Central Bank of Trinidad and Tobago (CBTT) was praised for its robust supervisory regime, but even it has been criticized for not demonstrating sufficient understanding of risk and applying it to regulation on a risk-sensitive basis. Similarly, other regulatory bodies have been found lacking in resources and expertise, leading to limited sanctions being imposed.
Limited Coordination and Information Sharing
The assessment highlighted the need for greater coordination among key stakeholders in the sector, as well as improved dissemination of AML/CFT policies and procedures. The Registrar General’s Department was commended for its efforts to increase accessibility to basic information on companies, but it was noted that the accuracy of this information is questionable due to a lack of requirement to maintain such data.
International Cooperation
International cooperation was also found to be lacking, with Law Enforcement Agencies (LEAs) not maximizing opportunities to exchange information with foreign counterparts. The assessment recommended that Trinidad and Tobago give full effect to international agreements such as the Vienna Convention, the Merida Convention, and others.
Priority Actions
To address these concerns, experts have identified several priority actions:
- Complete the National Risk Assessment (NRA) to ensure policy makers and stakeholders are aware of the risks posed by money laundering and terrorist financing.
- Conduct an assessment review of FIUTT’s operational analysis of Suspicious Transaction Reports (STRs)/Suspicious Activity Reports (SARs) to ensure it is in line with the needs of Law Enforcement Agencies (LEAs).
- Carry out detailed strategic analysis on a regular basis to apprise stakeholders, reporting entities, and law enforcement of money laundering/terrorist financing trends and typologies.
- Provide more resources and training to LEAs to prioritize the offence of money laundering and confiscation proceedings.
- Increase emphasis on the ties between corruption and AML/CFT, and incorporate a definitive plan of action into the national AML/CFT policy.
Conclusion
The lack of proper AML/CFT policy in Trinidad and Tobago’s financial sector is a serious concern that requires immediate attention. The country must take decisive action to address these weaknesses and ensure that its financial institutions are not exploited by illicit activities.