Trinidad and Tobago: Central Bank Sets Sight on Boosting E-Commerce with New Financial Regulations

Introduction

In a move aimed at fostering competition, promoting financial inclusion, and reducing the reliance on cash transactions, Trinidad and Tobago’s Central Bank has introduced new regulations for electronic money issuers (EMIs).

Fostering Competition and Promoting Financial Inclusion

The introduction of EMIs is expected to drive innovation in the domestic payments system, encouraging greater use and efficiency of electronic payments and e-commerce. The new category of persons will also promote financial inclusion by providing more accessible payment options for citizens.

Eligibility and Registration Process

To operate as an EMI, applicants must register separately with the Central Bank as a Payment Service Provider (PSP) and submit an application to the Financial Intelligence Unit Trinidad and Tobago (FIUTT). The registration process involves paying fees set out in Schedule 1 of the regulations. EMIs are also required to apply for permission and renewal of permission to issue e-money within five business days after being granted provisional registration.

Categories of Eligible Persons

The Central Bank has outlined specific categories of persons eligible to become EMIs, including non-licensed financial institutions. The application and registration process is expected to be streamlined, with instructions provided for the submission of applications and supporting documents.

Transactional Limits and Capital Requirements

The new regulations also set out transactional limits and capital requirements for E-Money accounts, aimed at ensuring the stability and security of the financial system.

Industry Reaction

Industry observers are hailing the move as a significant step forward in promoting e-commerce and financial inclusion in Trinidad and Tobago. With the Central Bank’s regulatory framework now in place, the stage is set for a new wave of innovation and growth in the country’s payments sector.

Conclusion

The introduction of EMIs is expected to have a positive impact on the financial system and economy of Trinidad and Tobago, promoting competition, financial inclusion, and innovation. The Central Bank’s regulatory framework provides a clear path forward for non-licensed financial institutions to become EMIs, driving growth and development in the country’s payments sector.