Financial Crime World

TRINIDAD AND TOBAGO EMBRACES DIGITAL FINANCE TRANSFORMATION

A Journey Towards a Cashless Society

In a significant move towards embracing the digital economy, Trinidad and Tobago has made considerable strides in modernizing its financial landscape. The nation’s commitment to advancing digital payments and financial inclusion has been underscored by recent policy changes and initiatives aimed at promoting economic resilience and reducing crime.

Key Achievements

  • Draft E-Money Policy (2018): A milestone in Trinidad and Tobago’s journey towards a cashless society.
  • FinTech Policy (2019): A framework for the growth of FinTech innovation in the country.
  • E-Money Issuer Order (2020): A regulation that facilitates the establishment of E-Money Issuers (EMIs) in Trinidad and Tobago.
  • Simplified Due Diligence Requirements (2021): A policy aimed at reducing regulatory burden on financial institutions.

Regulatory Innovation Hub

In 2020, three key institutions in Trinidad & Tobago’s financial ecosystem - the Central Bank, the Security Exchange Commission, and the Financial Intelligence Unit - joined forces to establish a Regulatory Innovation Hub. This central point of contact for fintechs serves as a crucial platform for facilitating progress in licensing, particularly for E-Money Issuers (EMIs), which can accelerate financial inclusion exponentially.

Trinidad and Tobago International Financial Centre (TTIFC)

The TTIFC has played a pivotal role in driving the transition to a cashless society by focusing on three key pillars:

  • Advancing Financial Inclusion: Enhancing access to financial services for all citizens.
  • Accelerating Digital Payments across Public Entities: Promoting the use of digital payments in government transactions.
  • Stimulating FinTech Innovation: Encouraging the growth of innovative financial technologies.

Future Directions

To further strengthen its efforts, Trinidad and Tobago can build on its progress by:

  • Adding flexibilities for innovation in digital wallets using risk-based approaches.
  • Designating a Secretariat for drafting digital finance strategies, coordinating the agenda, and supporting research and analysis.
  • Facilitating open payment systems and infrastructures.
  • Reviewing the current financial consumer protection framework to identify risks posed by emerging digital finance business models.

By establishing relevant strategies, building adequate data infrastructures, and strengthening stakeholder engagement, Trinidad and Tobago can foster cooperation, boost the economy, and improve access to digital financial services for everyone. The UNCDF is committed to supporting policymakers achieve their digital finance and financial inclusion goals, and looks forward to continued engagement in the Caribbean region.

Key Takeaways

  • Significant strides towards a cashless society: Trinidad and Tobago has made considerable progress in modernizing its financial landscape.
  • Government’s dedication to digital finance agenda: The government has underscored its commitment to advancing digital payments and financial inclusion through policy changes and initiatives.
  • TTIFC’s pivotal role: The TTIFC has played a crucial role in driving the transition to a cashless society by focusing on advancing financial inclusion, accelerating digital payments across public entities, and stimulating FinTech innovation.