Financial Crime World

Trinidad and Tobago Faces Financial Sanctions Enforcement Scrutiny

A recent report by the Financial Action Task Force (FATF) has shed light on Trinidad and Tobago’s efforts to implement technical requirements for combating money laundering, terrorist financing, and other financial crimes. The country received a mixed bag of ratings, with some areas showing significant progress while others require improvement.

FATF Recommendations

The FATF Recommendations assess a country’s implementation of measures to prevent the misuse of its financial system for criminal activities. Trinidad and Tobago scored high marks in several areas, including:

  • Assessment of Risk and Application of a Risk-Based Approach (R.1)
  • National Cooperation and Coordination (R.2)
  • Regulation and Supervision of Financial Institutions (R.26)

However, the country fell short in other key areas, such as:

  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6) - Partially Compliant
  • Regime for Confiscation and Provisional Measures (R.4) - Largely Compliant

Areas of Improvement

The report highlighted several areas where Trinidad and Tobago needs improvement, including:

  • Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs)
  • Customer Due Diligence (R.10)
  • Internal Controls and Foreign Branches and Subsidiaries (R.18)

Additionally, the country was urged to:

  • Enhance its Powers of Supervisors (R.27)
  • Provide Greater Transparency and Beneficial Ownership of Legal Persons and Arrangements (R.24 and R.25)
  • Improve its Financial Intelligence Units (R.29)
  • Law Enforcement and Investigative Authorities’ Responsibilities and Powers (R.30 and R.31)
  • Cash Courier Controls (R.32)

Response to the Report

The FATF report serves as a wake-up call for Trinidad and Tobago to strengthen its financial sanctions enforcement regime, particularly in the areas of terrorist financing and proliferation. The country must address these weaknesses to maintain its position as a responsible player in the global financial system.

In response to the report, the government has pledged to take immediate action to address the identified gaps and deficiencies. A task force has been established to oversee the implementation of reforms aimed at enhancing Trinidad and Tobago’s anti-money laundering and combating terrorist financing regime. The country is expected to submit a follow-up report to the FATF in the coming months to demonstrate its progress in addressing these concerns.

Conclusion

Trinidad and Tobago must take concrete steps to address the weaknesses identified by the FATF report. The government’s commitment to establishing a task force and implementing reforms is a positive step forward, but it remains to be seen whether the country will make sufficient progress to meet the FATF’s expectations.