Financial Crime World

Money Laundering Challenges and Compliance in Trinidad and Tobago: A Media Perspective

Trinidad and Tobago, a vibrant nation in the Caribbean known for its rich culture and natural beauty, is also a significant player in regional trade. However, beneath its charming façade, Trinridad and Tobago faces unique challenges when it comes to Anti-Money Laundering (AML) compliance. In this article, we’ll explore the key AML risks and the regulatory landscape for organizations operating in this region.

Key Risks

  • Narcotics Trafficking: Trinidad and Tobago’s proximity to Venezuela makes it a significant hub for drugs, humans, and money trafficking. Estimated annual money laundering ranges from $337 million to $844 million.
  • Fraud: Pyramid and Ponzi schemes are prevalent, especially in unregulated savings and loan clubs. Some clubs are run by high-ranking officials, increasing the risk of corruption.
  • Casinos: Recently legalized casinos present a challenge due to their powerful lobby and potential for money laundering.
  • Terrorist Financing: The use of money remittance services and prepaid debit cards by citizens traveling to support terrorist organizations poses a significant risk.

Vulnerabilities

  • Weak Enforcement: Hundreds of officials fail to disclose their income, assets, and liabilities as required.
  • Slow Judiciary: Cases often take years to be resolved.
  • Corruption: Law enforcement, customs, and army officials have been implicated in bribery and money laundering. Instability in Venezuela exacerbates these issues.

Strengths

Despite the challenges, Trinidad and Tobago has several strengths:

  • International Partnerships: Strong partnerships with the US and the Caribbean Basin Security Initiative aid in drug control and law enforcement.
  • Exchange of Tax Information: The country exchanges tax information with other nations, facilitating international cooperation.

AML Policy and Legislation

Trinidad and Tobago has the following primary legislation to combat money laundering:

  • Proceeds of Crime Act 2000: This act covers the confiscation of proceeds of crime and provisions for the freezing and forfeiture of criminal assets.
  • Civil Asset Recovery and Management and Unexplained Wealth Act of 2019: These acts aim to confiscate proceeds and instrumentalities of crime, improve the civil confiscation process, and increase transparency.
  • Anti-Terrorism Act of 2005: This act establishes measures to prevent terrorism and the financing of terrorism.

New regulations aim to outlaw pyramid and Ponzi schemes.

Conclusion

Trinidad and Tobago poses unique AML risks and challenges for organizations operating in the region. Understanding the complex regulatory landscape, identifying weaknesses and strengths, and applying effective compliance strategies is crucial to mitigating the risks.

For more in-depth information, download VinciWorks’ free guide to AML challenges and laws in Latin America and the Caribbean.

To download the free guide, please click here.