Financial Crimes Threaten Economic Stability in Trinidad and Tobago

A recent report from the Financial Intelligence Unit of Trinidad and Tobago (FIUTT) has highlighted a staggering 950 suspicious transactions totalling $5.9 billion recorded between September 2022 and September 2023, revealing the alarming prevalence of financial crimes in the country.

The Alarming Prevalence of Financial Crimes

According to the report tabled by Finance Minister Colm Imbert in Parliament, these illicit activities account for over 10% of Trinidad and Tobago’s 2024 national budget. Moreover, it is estimated that financial crimes are seven times more prevalent than official reports suggest, with the total amount of money in the underground economy potentially running into billions.

Financial Crimes Statistics

950 suspicious transactions recorded between September 2022 and September 2023
Total value of these transactions: $5.9 billion
Illicit activities account for over 10% of Trinidad and Tobago’s 2024 national budget
Estimated prevalence of financial crimes: seven times higher than official reports suggest

The Influence of the Illicit Drug Trade

The report paints a disturbing picture of an economy heavily influenced by the illicit drug trade, which has long been a major driver of financial crimes in Trinidad and Tobago. A 2001 United Nations report estimated that the Caribbean market for illegal drugs generated over $3 billion annually, with the country accounting for approximately 11% of this trade.

The Illicit Drug Trade

Estimated annual revenue from the Caribbean market: $3 billion
Trinidad and Tobago’s share of the market: approximately 11%
Links between the illicit drug trade and financial crimes in the country

Money Laundering and Terrorist Financing

The report also highlights the increasing sophistication of financial crimes, including money laundering and terrorist financing. The Police Service revealed that 65 individuals were charged with laundering over $62 million in 2020. However, this is likely just a small fraction of the total amount laundered, given that the FIUTT recorded $698 million in suspicious transactions in its 2014 report.

Money Laundering and Terrorist Financing

Number of individuals charged with money laundering: 65
Total value of money laundered: over $62 million
FIUTT’s record of suspicious transactions: $698 million
Suspected terrorism financing cases: nine out of 60 intelligence reports

The Need for Vigilance

The country has a history of supplying ISIS recruits per capita from the West, underscoring the need for vigilance in this area. The increasing sophistication of financial crimes and the failure to keep pace with these illicit activities are also cause for concern.

The Threat of Terrorism Financing

History of Trinidad and Tobago supplying ISIS recruits: highest per capita rate
Need for vigilance in addressing terrorism financing threats

Conclusion

The latest FIUTT report serves as a wake-up call for both the government and private sector to take action against financial crimes threatening the country’s economic stability. The authorities must work to stop the root causes of these evils, including money laundering and terrorist financing.

Recommendations

Strengthen reporting mechanisms from institutions such as banks and private members clubs
Increase vigilance in addressing terrorism financing threats
Improve collaboration between law enforcement agencies and regulatory bodies