Financial Crime World

Financial Institutions Act: Definitions and Objectives

The Financial Institutions Act has been introduced to strengthen the regulation and supervision of financial institutions in Trinidad and Tobago, with new definitions and objectives aimed at promoting confidence, stability, and efficiency in the financial system.

Definitions

  • A “security” is defined as any bond, debenture, note, or other evidence of indebtedness, share, stock, unit certificate, participation certificate, certificate of share or interest, document, instrument, or writing commonly known as a security.
  • A “significant shareholder” is defined as a person who has the right to exercise 20% or more of the voting power at any general meeting of the licensee.

Objectives

The Central Bank shall aim to:

  • Maintain confidence in and promote the soundness and stability of the financial system in Trinidad and Tobago.
  • Supervise licensees to determine whether they are in sound financial condition.
  • Promote the existence of efficient and fair banking and financial services markets.
  • Maintain an appropriate level of protection for depositors.

Responsibilities

The Inspector of Financial Institutions is responsible for:

  • Monitoring compliance with the Act.
  • Ensuring that financial institutions operate in a safe and sound manner.
  • Appointed by the President upon the recommendation of the Governor of the Central Bank.

Restrictions on the Use of Certain Titles

The Act prohibits any person from trading or carrying on business under any name or title that includes the word “Bank” or any variation of the word, unless authorized to do so by the Central Bank.

Inconsistency Provisions

In the event of any inconsistency or conflict between this Act and any other written law:

  • The provisions of this Act shall prevail and take precedence over such other law.
  • Unless explicitly provided to the contrary in this Act or such other written law.

Effective Date

The Act comes into effect on [insert date] and is intended to promote a more stable and efficient financial system in Trinidad and Tobago.