Financial Crime World

Financial Institutions Must Verify Identity of Customers, Partners

To combat money laundering and terrorist financing, financial institutions and listed businesses in Trinidad and Tobago are now required to verify the identity of their customers and partners. This new regulation aims to ensure that financial institutions are not used for illegal activities and protect the integrity of the financial system.

Requirements for Financial Institutions

According to the regulations, financial institutions must:

  • Verify the identity of individuals and companies seeking to establish a relationship with them
  • Collect sufficient information about customers, including:
    • Name
    • Address
    • Date of birth
    • Identification number
    • Proof of ownership or control of any beneficial interests in the customer’s account
  • Verify the identity of individuals acting on behalf of a company, as well as those who appear to be acting on behalf of someone else
    • Ensure permission from the person being represented
    • Confirm authorization to act on their behalf

Regular Due Diligence Checks

Financial institutions are also required to conduct regular due diligence checks on their customers and partners, including:

  • Monitoring transactions
  • Reporting any suspicious activity to the authorities

Correspondent Banking Relationships

The regulations also apply to correspondent banking relationships, where one bank in Trinidad and Tobago provides banking services to another bank in a foreign country. In this case, the correspondent bank must ensure that it has sufficient information about its respondent bank and that it is effectively supervised by the competent authorities in its jurisdiction.

Special Measures for Non-Face-to-Face Business Relationships

Financial institutions are required to put special measures in place to address specific concerns associated with non-face-to-face business relationships or transactions.

Broader Effort to Strengthen AML/CFT Regime

These regulations are part of a broader effort to strengthen Trinidad and Tobago’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The aim is to ensure that financial institutions are not used for money laundering or terrorist financing and protect the integrity of the financial system.

Quote from Financial Services Authority

“The aim of these regulations is to ensure that financial institutions are not used for money laundering or terrorist financing,” said a spokesperson for the Financial Services Authority. “By verifying the identity of our customers and partners, we can help prevent these types of activities and protect the integrity of the financial system.”