Financial Crime World

Terrorism Funding: A Threat to National Security

Recent amendments to the Anti-Terrorism (Amendment) Act #2 of 2010, section 5(e), emphasize the importance of combating terrorism financing in Trinidad and Tobago. This legislation aims to prevent the misuse of financial systems by terrorist organizations and their sympathizers.

Sources of Terrorist Funding

Terrorist groups often rely on two primary sources of funding:

  • State-sponsored support
  • “Revenue-generating” criminal activities such as:
    • Kidnapping
    • Extortion
    • Smuggling
    • Fraud
    • Theft
    • Robberies
    • Narcotics trafficking

In some cases, legitimate charitable organizations may also be used to fund terrorist activities.

Financial Institutions’ Role

Financial institutions play a crucial role in combating terrorism financing by implementing effective anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. According to section 4 of the Guideline on Anti-Money Laundering and Combating of Terrorist Financing, all financial institutions licensed under the Financial Institutions Act, insurance companies, authorized dealers, and companies engaged in money transmission or remittance business are required to comply with AML/CFT regulations.

Legislative and Regulatory Framework

The legislative framework for combating terrorism financing in Trinidad and Tobago includes:

  • Prevention of Corruption Act (POCA)
  • Financial Services Act (FSA)
  • Anti-Terrorism Act (ATA)
  • Financial Intelligence Unit of Trinidad and Tobago (FIUTTA) Act

These laws require financial institutions to:

  • Establish compliance programs
  • Appoint Compliance Officers
  • Report suspicious transactions
  • Maintain records

Suppressing Terrorism Financing

The Central Bank is responsible for supervising financial institutions and ensuring compliance with AML/CFT regulations. Financial institutions must also take steps to prevent the misuse of their services by terrorist organizations, including:

  • Identifying customers
  • Reporting suspicious transactions
  • Maintaining records

Conclusion

Combating terrorism financing is a critical component of national security efforts in Trinidad and Tobago. The recent amendment to the Anti-Terrorism (Amendment) Act #2 of 2010, section 5(e), highlights the importance of implementing effective AML/CFT measures by financial institutions. By working together, we can prevent the misuse of financial systems by terrorist organizations and protect our nation from this threat.