Financial Crime World

KYC Procedures Explained in Trinidad and Tobago: Republic Bank Limited Complies with International Standards

In an effort to combat money laundering and terrorist financing, Republic Bank Limited has implemented Know Your Customer (KYC) procedures that adhere to international best practices. The bank’s KYC procedures are guided by the Central Bank of Trinidad and Tobago’s Guideline on Anti-Money Laundering and Combating of Terrorist Financing 2011.

Key Components of Republic Bank Limited’s KYC Procedures

  • Identification and Verification: Customers’ identification and verification is a crucial step in the bank’s KYC procedures.
  • Monitoring of Customer Transactions: The bank closely monitors customer transactions to detect suspicious or unusual activities.
  • Internal Reporting Procedures: Employees are trained to report any suspicious or unusual transactions internally using a standardized form.
  • Employee Education and Training: All employees undergo online training programs on Anti-Money Laundering (AML) and Combating of Terrorist Financing (CFT).
  • Record-Keeping Procedures: The bank maintains accurate records of customer information, transactions, and other relevant data.

Operational Practices

Customer Onboarding

The bank’s operating practice involves interviewing customers before opening accounts or accepting deposits. Customers must satisfy the bank’s qualifying criteria and provide appropriate documentation to proceed with transactions. For new personal accounts, this includes:

  • Valid photo identification
  • Proof of income
  • Proof of address

Non-personal customers are required to provide:

  • All incorporation documents
  • CDD information for directors and shareholders
  • Financial statements

Mitigating Risks

Republic Bank Limited has implemented policies to mitigate the potential risks associated with high-risk customer types, including:

  • Politically Exposed Persons (PEPs)
  • Listed businesses
  • Cash-Intensive Businesses

These policies are consistent with the Basel Committee on Banking Supervision’s regulations and supervisory practices statement on preventing criminal use of the banking system for money laundering.

Prevention of Criminal Use

The bank has a policy in place to prevent its operations, products, and services from being used for criminal purposes. This policy applies to both domestic and overseas operations/subsidiaries. The bank does not engage in business with:

  • Shell banks
  • Banks incorporated in jurisdictions without physical presence and affiliation with regulated financial groups

Monitoring Suspicious Activity

Suspicious activity is monitored through source of funds reporting, which is mandatory for all transactions over US$12,000. Unusual transactions are reported by each unit/branch via an internal reporting form and submitted to the group compliance officer.

Compliance Function

The bank’s AML/CFT compliance function is subject to independent testing by its quality assurance team, internal auditors, and external auditors annually. By implementing these measures, Republic Bank Limited demonstrates its commitment to complying with international standards on KYC procedures and preventing money laundering and terrorist financing in Trinidad and Tobago.