Financial Crime World

Regulatory Bodies for Financial Services: A Pillar of Stability in Trinidad and Tobago

In a bid to ensure the financial stability of Trinidad and Tobago, the Central Bank has taken proactive measures through its Financial Institution Supervision Department (FISD).

Objectives of the FISD

The primary objectives of the FISD include:

  • Maintaining an effective legislative, regulatory, and supervisory framework for all licensed and registered entities
  • Assessing these entities to ensure they are operating in a sound financial condition and complying with relevant laws and regulations
  • Promoting fair and efficient financial services markets

Risk-Based Supervision Framework

The FISD employs a risk-based supervisory framework, which includes:

  • On-site examinations
  • Off-site monitoring
  • Ad hoc analyses

This approach enables the regulator to identify areas of significant risk at institutions and evaluate their governance, systems, and controls.

Regulatory Activities

The FISD conducts regular examinations and reviews reports to ensure compliance with regulatory laws, regulations, and guidelines. In cases where breaches occur, the regulator has the authority to impose sanctions and issue compliance directions. Additionally, the department makes recommendations for new regulations or enhanced legislation to keep pace with local and international trends.

Cooperation among Regulatory Bodies

In a move to enhance cooperation among regulatory bodies, the Central Bank, Trinidad and Tobago Securities and Exchange Commission (TTSEC), and Financial Intelligence Unit of Trinidad and Tobago (FIU) signed a Multilateral Memorandum of Understanding in 2019. This agreement facilitates:

  • The sharing of information
  • Coordination of supervisory activities
  • Collaborative work on matters of common interest

Confidentiality and Duty to Protect Stakeholders

The Central Bank’s commitment to regulating the financial sector has been reinforced by its duty of confidentiality, which ensures that all officers and staff maintain secrecy regarding knowledge gained during their duties. This underscores the regulator’s dedication to protecting the interests of:

  • Depositors
  • Policyholders
  • Pension plan members

Conclusion

As a key player in promoting financial stability, the FISD continues to play a vital role in safeguarding the financial well-being of Trinidad and Tobago.