Financial Crime World

Trinidad and Tobago’s Financial Obligations Regulations: Compliance, Customer Due Diligence, and Training Requirements

The Financial Obligations Regulations, 2010, is a crucial regulatory framework in Trinidad and Tobago aimed at combating money laundering and terrorist financing. This article outlines the key provisions of the regulations, focusing on compliance, customer due diligence, and training requirements for financial institutions and listed businesses.

Compliance and Training Requirements (Part II)

Part II of the Financial Obligations Regulations, 2010, emphasizes the importance of a strong compliance culture and effective training programs.

  • Appointment of a Compliance Officer (Regulation 3) Financial institutions and listed businesses must appoint a dedicated Compliance Officer to oversee their compliance program.

  • Responsibilities of the Compliance Officer (Regulation 4) The Compliance Officer is responsible for coordinating and monitoring the institution’s compliance program, ensuring continuous adherence to regulatory requirements.

  • Staff Recruitment and Training (Regulations 5 and 6) Financial institutions and listed businesses must:

    • Implement a policy to hire staff of the highest integrity and competence.
    • Provide ongoing training on relevant legislation and money laundering techniques.

Customer Due Diligence (Part III)

Part III of the Financial Obligations Regulations, 2010, mandates stringent customer due diligence procedures.

  • Transaction and Business Relationships (Regulation 11) Financial institutions and listed businesses must conduct due diligence procedures for all financial transactions and business relationships.

  • Identity Verification (Regulation 12) Request evidence of the customer’s and beneficial owner’s identity before entering a transaction or business relationship.

  • Legal Status Verification (Regulation 22) Confirm the legal status of the customer and beneficial owner.

Special Considerations (Regulations 20 and 16)

  • Politically Exposed Persons (PEPs) (Regulation 20) Financial institutions and listed businesses must conduct enhanced due diligence for applicants identified as PEPs to mitigate potential risks.

    • Determine whether an applicant is a PEP.
    • Document the source of wealth or funds.
    • Conduct ongoing monitoring.

  • Incorporated Entities (Regulation 16) Request additional information from incorporated entities:

    • Certificate of incorporation or articles of incorporation.
    • Management accounts.
    • Information on shareholders holding more than 10% of the paid-up share capital.

In conclusion, Trinidad and Tobago’s Financial Obligations Regulations, 2010, serve to protect the financial system from money laundering and terrorist financing risks. Compliance with these regulations and continuous updates to keep practices in line with evolving regulatory frameworks are essential.