Trinidad and Tobago Struggles with Money Laundering Prevention: Weak Laws and Lack of Political Will Contribute to Illicit Activities
Introduction
Port of Spain, Trinidad and Tobago - The island nation of Trinidad and Tobago has been plagued by money laundering for years, with estimated annual proceeds ranging from $337 million to $844 million. Despite having laws in place to prevent the illegal activity, the country’s lack of political will, weak capacity, and corruption have hindered efforts to combat the problem.
Challenges Facing Trinidad and Tobago
- Strategic Location: The country’s location makes it a hub for human trafficking, drug trafficking, and money laundering.
- Porous Borders: The borders with Venezuela, where instability has led to an increase in illicit activities, further exacerbate the issue.
- Cash-Based Economy: The widespread use of cash and informal transactions provides ample opportunities for criminals to launder funds.
Government Efforts
Despite efforts to combat money laundering, the government’s enforcement and prosecution rates have been weak. According to officials, less than 10% of criminal proceeds are detected and prosecuted. The judiciary is also slow to act, with cases taking years to resolve.
Fraud and Other Issues
- Pyramid and Ponzi Schemes: These types of fraud are common in Trinidad and Tobago.
- Casino Industry: The recent legalization of casinos has raised concerns about the potential for money laundering through the industry.
Positive Developments
Trinidad and Tobago works closely with the US on drug control and law enforcement, and exchanges tax information with other countries. The country is also participating in the Caribbean Basin Security Initiative to combat crime and corruption.
Recommendations
To address the issue of money laundering in Trinidad and Tobago, more needs to be done:
- Stronger Commitment: The government must demonstrate a stronger commitment to combating money laundering.
- Effective Laws and Regulations: Implementing effective laws and regulations is crucial to preventing money laundering.
By addressing these challenges and implementing effective measures, Trinidad and Tobago can reduce its vulnerability to money laundering and other illicit activities.