Financial Crime World

Fraudulent Financial Transactions Exposed in Trinidad and Tobago: Finance Minister Reveals Alarming Figures

Introduction

The Financial Intelligence Unit (FIU) of Trinidad and Tobago has reported a staggering 958 suspicious transaction reports/suspicious activity reports (STRs/SARs) at the end of September 2022, with a total monetary value of $1.937 billion. According to Finance Minister Colm Imbert, these transactions relate to tax evasion, fraud, money laundering, and drug trafficking.

Alarming Figures

  • The FIU received 958 STRs/SARs, which is a significant increase compared to previous reporting periods.
  • The total monetary value of these transactions was $1.937 billion.
  • Completed transactions valued at $1.586 billion, while attempted transactions were valued at $350 million.
  • This represents a 24% decrease in completed transactions and a 68% decrease in attempted transactions compared to the previous reporting period.

Breakdown by Category

  • Suspicious activity: 301 STRs/SARs
  • Tax evasion: 211 persons
  • Fraud: 196 persons
  • Money laundering: 155 persons
  • Drug trafficking: 35 persons
  • These categories accounted for 94% of the total STRs/SARs received and 60% of the total monetary value.

Intelligence Reports

  • The FIU generated 69 intelligence reports, including:
    • 65 suspected money laundering cases
    • 4 suspected terrorism financing cases
  • Of these, 45 were spontaneous disclosures, with 33 submitted to local competent authorities and 12 shared with foreign law enforcement agencies and FIUs.

Requests from Foreign Authorities

  • The FIU received requests for cooperation from foreign law enforcement agencies and FIUs.
  • Most of the requests originated from the Caribbean, Middle East, and Europe.
  • A total of 85 subjects featured in these requests.

Information Sharing

  • The FIU disseminated 12 spontaneous disclosures to foreign FIUs and law enforcement agencies, compared to six in 2021.
  • Most of the requests were sent to foreign authorities in the Caribbean, Americas, and Asia.

Compliance and Legislative Amendments

  • Finance Minister Imbert highlighted the need for improved compliance by credit unions regarding quarterly property terrorist reports (QTRs).
  • The FIU has signed 36 memorandums of understanding (MOUs) with foreign FIUs.
  • The government will introduce legislative amendments to strengthen existing anti-money laundering and anti-terrorism financing measures, including measures for non-profit organizations.

Conclusion

The report highlights the significant increase in fraudulent financial transactions in Trinidad and Tobago. The Finance Minister has emphasized the need for improved compliance by credit unions and the introduction of legislative amendments to strengthen anti-money laundering and anti-terrorism financing measures.