Financial Crime World

Money Laundering in Trinidad and Tobago: Understanding the Challenges

Trinidad and Tobago, one of the largest trading nations in the Caribbean, faces significant challenges in combating money laundering. Its strategic location seven miles from Venezuela makes it a key route for human trafficking, drug trafficking, and illegal activities.

The Scale of the Problem

According to estimates, between $337 million and $844 million is laundered annually in Trinidad and Tobago. The lack of political will, low prosecution rates, and weak capacity to tackle money laundering make it challenging for the country to effectively combat this issue.

Key Money Laundering Laws

  • Proceeds of Crime Act 2000: This act aims to prevent and combat money laundering.
  • Civil Asset Recovery and Management and Unexplained Wealth Act of 2019: This act provides a framework for recovering and managing assets obtained through illegal activities.
  • Anti-Terrorism Act of 2005: This act aims to prevent and combat terrorism-related financing.
  • Prevention of Corruption Act of 1987: This act aims to prevent corruption in public life.
  • Integrity in Public Life Act of 2000: This act promotes integrity in public life by preventing corruption and ensuring accountability.
  • Companies Act of 2019: This act regulates the incorporation, operation, and dissolution of companies.
  • E-Money Issuer Order of 2020: This order regulates the issuance of e-money.
  • Gambling (Gaming and Betting) Control Act of 2021: This act regulates gambling activities.

Vulnerabilities in the Gambling Sector

The recent legalization of the gambling industry has created significant vulnerabilities. The sector is a powerful lobby, which has delayed legislative changes aimed at regulating the industry to tax it.

Corruption

Corruption remains a significant issue in Trinidad and Tobago, with law enforcement officials, customs agents, immigration officers, army personnel, and high-ranking government members being prosecuted for bribery and money laundering.

Venezuela’s Instability

The instability in Venezuela has contributed to an increase in trafficking through the country, including people, drugs, and cash. To combat this, Trinidad and Tobago works closely with the US on drug control and law enforcement, as well as exchanging tax information. The country also participates in the Caribbean Basin Security Initiative.

Staying Ahead of Money Laundering Threats

To stay ahead of money laundering threats, businesses operating in Trinidad and Tobago must be aware of these challenges and take steps to ensure compliance with anti-money laundering regulations. VinciWorks has created a guide designed to support businesses that operate or plan to operate in the region, providing an overview of key AML challenges and issues, as well as a country-by-country assessment of AML risks and laws.

Download Our Free Guide to Compliance

For more information on money laundering in Trinidad and Tobago, download our free guide to compliance. Click here to access your free copy.