Financial Crime World

AML Rules and Regulations in Trinidad and Tobago

In an effort to combat financial crimes, the Financial Intelligence Unit of Trinidad and Tobago (FIU-TT) has established a robust Anti-Money Laundering (AML) framework, comprising rules and regulations that financial institutions must adhere to.

Reporting Suspicious Transactions

According to section 3(1) of the Financial Intelligence Units Act, all persons in Trinidad and Tobago are required to report suspicious transactions to the FIU. This includes:

  • Banks
  • Credit unions
  • Insurance companies
  • Other financial institutions

The reporting threshold is set at TTD $15,000 or its equivalent in foreign currency.

AML/CFT Controls

Financial institutions are also mandated to put in place effective AML/CFT controls, including:

  • Customer Due Diligence: Conducting customer identification and verification
  • Ongoing Monitoring: Continuously monitoring customer activity for suspicious behavior
  • Record-Keeping: Maintaining accurate records of all transactions

The FIU-TT has issued guidelines for financial institutions to follow, which include the above measures.

Risk-Based Approach Criteria

The FIU-TT has established a set of risk-based approach criteria that financial institutions must use to identify high-risk customers and transactions. This includes:

  • Identifying Politically Exposed Persons: Screening against sanctions lists
  • Monitoring for Unusual or Suspicious Activity: Identifying unusual patterns of behavior
  • Screening Against Sanctions Lists: Preventing transactions with individuals or entities listed on sanctions lists

Penalties for Non-Compliance

Financial institutions that fail to comply with AML regulations may face severe penalties, including:

  • Fines
  • Revocation of their license

The FIU-TT has also established a system for reporting AML/CFT breaches, which allows financial institutions to self-report any instances of non-compliance.

Conclusion

In summary, the AML framework in Trinidad and Tobago is designed to protect the financial system from money laundering and terrorist financing by requiring financial institutions to implement robust controls and report suspicious transactions to the FIU-TT. Financial institutions that fail to comply with these regulations risk severe penalties, highlighting the importance of effective AML/CFT compliance.