Financial Crime World

Developing a Pan-Caribbean Financial Centre in Trinidad and Tobago

Introduction

A comprehensive document outlining policy recommendations for developing a Pan-Caribbean Financial Centre in Trinidad and Tobago has been presented. This centre aims to create a favorable business environment for the financial services sector, promote competition, and protect consumers while complying with international agreements and standards.

General Recommendations

The following key points outline the general recommendations:

Legislative Framework

  • Upgrade the legislative framework: Ensure a sound legal basis for all areas of financial sector activity.
  • Adopt International Financial Reporting Standards (IFRS): For companies providing financial products and services.
  • Establish a single Regulatory Authority: With necessary powers and authority for integrated regulation of the financial sector.

Taxation Regime

  • Review the taxation regime: Make it competitive and remove tax-induced distortions within the sector.

Telecommunications Infrastructure

  • Liberalize the telecommunications sector: Keep pace with technological developments.

Competition Policy

  • Develop a competition policy: For the financial services sector, including rules to deal with anti-competitive behavior.
  • Ensure commitments under bilateral, regional, and international agreements: Do not adversely inhibit the development of the financial system.

Human Resources

  • Develop a cadre of human resource personnel: Capable of efficiently managing the financial services sector.

Sector-Specific Recommendations

The following recommendations are specific to certain sectors:

Banking Sector

  • Accelerate efforts to amend the Financial Institutions Act (1993): Enhance supervision and strengthen the Central Bank’s enforcement powers, including cross-border supervision and reporting requirements on commercial groups.
  • Introduce measures to limit or restrict intra-group transactions: Beyond the licensee and related parties.
  • Require adequate capital and other prudential requirements: To be applied on a consolidated basis.

Financial Services Ombudsman

  • Upgrade the Office of the Banking Ombudsman: To a Financial Services Ombudsman and establish an alternative dispute resolution mechanism.

Small Claims Court

  • Explore the feasibility of establishing a small claims court: For petty financial services issues.