Financial Crime World

Financial Institutions Required to Monitor Subagents, Report Suspicious Transactions

Strengthening Anti-Money Laundering and Counter-Terrorism Financing Efforts

In a move to enhance anti-money laundering (AML) and counter-terrorism financing (CFT) efforts, financial institutions and listed businesses in Trinidad and Tobago are now required to ensure that their subagents comply with their AML/CFT programs.

Mandatory Reporting Rules

Under the new regulations, these institutions must establish internal reporting rules that require employees who know or suspect a transaction involves criminal conduct to report the matter to the Compliance Officer. The officer must then review the report and determine whether it gives rise to knowledge or suspicion of criminal activity.

  • Employees are responsible for reporting suspicious transactions to the Compliance Officer
  • Compliance Officers must review reports and determine whether they give rise to knowledge or suspicion of criminal activity

Access to Customer Information

The regulations also require financial institutions and listed businesses to ensure that their Compliance Officers have timely access to customer identification data and other records, as well as relevant information, to enable them to produce reports in a timely manner.

  • Compliance Officers must have access to customer identification data and other records
  • Relevant information must be available to enable timely reporting

Annual Review of Compliance Programs

Financial institutions and listed businesses are required to review their compliance programs annually by internal and external auditors. The auditors must evaluate compliance with relevant legislation and guidelines and submit reports and recommendations to the Board of Directors and regulatory authorities.

  • Compliance programs must be reviewed annually by internal and external auditors
  • Auditors must evaluate compliance with relevant legislation and guidelines

Customer Due Diligence Measures

The regulations provide for customer due diligence measures, including:

  • Identification of customers and beneficial owners
  • Understanding of the nature of the business

Financial institutions and listed businesses are allowed to rely on third-party financial institutions or listed businesses to perform elements of customer due diligence, but they remain ultimately responsible for ensuring that these measures are in place.

Background

The Financial Intelligence Unit (FIU) is responsible for coordinating efforts to prevent the misuse of the financial system in Trinidad and Tobago. The FIU works closely with financial institutions, regulatory authorities, and other stakeholders to ensure that these efforts are effective.

  • The FIU coordinates efforts to prevent the misuse of the financial system
  • The FIU works closely with financial institutions, regulatory authorities, and other stakeholders

Conclusion

In conclusion, financial institutions and listed businesses in Trinidad and Tobago are now required to monitor their subagents and report suspicious transactions under new regulations aimed at preventing money laundering and terrorist financing. These regulations demonstrate the government’s commitment to ensuring that the country’s financial system is not used for illegal activities.

  • Financial institutions and listed businesses must monitor subagents and report suspicious transactions
  • The regulations demonstrate the government’s commitment to combating money laundering and terrorist financing