Financial Crime World

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Financial Institution Compliance Requirements in Trinidad and Tobago: What You Need to Know

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In a bid to combat money laundering and terrorism financing, the Financial Intelligence Unit of Trinidad and Tobago (FIUTT) has implemented strict compliance requirements for financial institutions operating in the country. According to the Proceeds of Crime Act, Chap 11:27, all businesses that perform specific functions are required to register with the FIUTT.

Supervised Entities

The list of supervised entities includes non-regulated financial institutions, as defined in Section 2 of the Financial Intelligence Unit of Trinidad and Tobago Act, and those listed in the First Schedule of the Proceeds of Crime Act. These entities are categorized as Supervised Entities and must comply with the registration guidelines issued by the FIUTT.

Registration Process

The registration process is a simple four-stage procedure that begins with confirming whether one’s business needs to register. Once confirmed, the entity must:

  • Download and complete the Registration of Listed Business form
  • Print and sign it
  • Submit it along with supporting documents to the Director of the FIUTT

Money or Value Transfer Services (MVTS)

Businesses providing MVTS are required to register with the FIUTT in accordance with Section 18B of the Financial Intelligence Unit Act. The E-Money Issuer Order, 2020 introduces two classes of businesses permitted by law to perform MVTS activities:

  • Payment Service Providers
  • E-Money Issuers

To register as an E-Money Issuer or Payment Service Provider, these businesses must comply with the registration guidelines issued jointly by the FIU and the Central Bank of Trinidad and Tobago. Failure to register can result in serious consequences, including fines and imprisonment.

Non-Profit Organizations (NPOs)

Non-profit organizations (NPOs) operating in Trinidad and Tobago are also required to register with the Registrar General Department under the Non-Profit Organizations Act, No. 7 of 2019. NPOs must submit their application for registration under Section 5(4) of the Act to the Registrar Generals’ Department.

Consequences of Failure to Register

Failure to register as an NPO is an offence punishable by a fine of fifty thousand dollars and imprisonment for seven years. Additionally, only those NPOs with an annual income of over Five Hundred Thousand Dollars will be supervised by the FIU.

Guidance Notes on AML/CFT Obligations for NPOs

The Financial Intelligence Unit has issued guidance notes on anti-money laundering and counter-financing of terrorism (AML/CFT) obligations for NPOs. The guidance outlines the legal requirements for NPOs to:

  • Mitigate and report suspicious transactions or activities
  • Possess terrorist funds once identified in their due diligence processes

Conclusion

Financial institutions operating in Trinidad and Tobago must comply with strict compliance requirements to prevent money laundering and terrorism financing. Failure to register or comply with these regulations can result in serious consequences, including fines and imprisonment. It is essential for businesses and NPOs to familiarize themselves with the registration guidelines and AML/CFT obligations to ensure compliance with the law.