Technologies Used in Financial Crime Prevention in Trinidad and Tobago

Trinidad and Tobago’s financial services industry is one of the most developed in the Caribbean. However, it lags behind other emerging markets in its approach to online banking and digital payments. This article highlights recent developments aimed at bridging this gap.

Digital Transformation Efforts

Republic Bank’s Partnership with WiPay

In a significant move, Republic Bank has acquired a 19.99% equity stake in electronic payment solutions company Caribbean FinTech Nobis BaaS, a subsidiary of local e-payment group WiPay Holdings. This partnership bolsters Republic Bank’s strategy to encourage digital transformation while boosting its fintech portfolio.

Contactless E-Payment Solution

Republic Bank and WiPay have also deployed a contactless, wearable e-payment solution at the Hero Caribbean Premier League cricket match in October 2019. This technology has the potential to be used during Trinidad and Tobago’s Carnival celebrations and other major events.

Investments in Technology

Scotiabank’s Digital Transformation Efforts

Scotiabank has invested over TT$16.5 billion ($2.4 billion) per year in technology across its banking network, representing more than 10% of the company’s revenue. The bank aims to become Trinidad and Tobago’s number-one digital bank, with a focus on security and convenience.

Fintech Companies Driving Innovation

WiPay’s Plans for Listing

Fintech companies such as WiPay are also playing a key role in driving innovation in the financial sector. The company plans to list as a digital asset on the Jamaican Stock Exchange’s Junior Market for small and medium-sized firms sometime in 2020.

Combating Financial Crime

Establishment of the Financial Intelligence Unit (FIU)

Trinidad and Tobago’s government has established the Financial Intelligence Unit (FIU) under the Ministry of National Security. The FIU is responsible for receiving and analyzing reports from financial institutions on suspicious transactions.

Legislation to Combat Money Laundering and Terrorism Financing

The country has also enacted legislation such as the Proceeds of Crime Act to combat money laundering and terrorism financing. Furthermore, the Trinidad and Tobago Stock Exchange has implemented regulations to ensure that listed companies comply with anti-money laundering and combating the financing of terrorism (AML/CFT) standards.

Challenges Persist

Need for Greater Collaboration

Despite these efforts, challenges persist in effectively preventing financial crime in Trinidad and Tobago. One major challenge is the need for greater collaboration between financial institutions, regulators, and law enforcement agencies to share information and coordinate efforts.

Need for a More Robust Regulatory Framework

The country also needs to develop a more robust regulatory framework to keep pace with emerging technologies and threats. Furthermore, there is a need for greater awareness among citizens about the risks of financial crime and how to protect themselves.

Conclusion

While Trinidad and Tobago has made progress in leveraging technology to enhance financial inclusion and combat financial crime, there are still significant challenges to be addressed. By addressing these challenges, the country can further develop its financial services industry and prevent financial crime effectively.