Financial Crime World

Trinidad and Tobago Tightens Anti-Money Laundering Policies

The Central Bank of Trinidad and Tobago has taken a significant step towards ensuring that financial institutions operating in the country comply with Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) legislative and regulatory requirements.

AML/CFT Requirements for Financial Institutions

Financial institutions are required to implement robust AML/CFT measures to prevent money laundering and terrorist financing. The Central Bank issues guidelines and circular letters to provide guidance on AML/CFT processes, systems, and practices.

  • The Financial Institutions Act 2008 requires financial institutions to implement AML/CFT measures.
  • The Central Bank has contributed to national initiatives in the fight against money laundering through its participation on the National Committee on Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT).

Guidance and Circular Letters

The Central Bank has issued a series of circular letters providing guidance on various AML/CFT matters, including:

  • Updated guidance for simplified due diligence requirements for basic banking accounts
  • Guidelines on anti-money laundering and combating terrorism financing
  • Guidance on verifying requirements in light of COVID-19 measures

FATF and CFATF Recommendations

The Financial Action Task Force (FATF) is a global standard-setting body that develops recommendations to combat money laundering and terrorist financing. The Caribbean Financial Action Task Force (CFATF) is an organization of 29 jurisdictions in the Caribbean region that have agreed to implement FATF recommendations.

  • Financial institutions are required to take public statements identifying countries with strategic deficiencies in their AML/CFT regimes into account when considering whether a transaction should be reported as suspicious activity or a transaction.
  • The Central Bank has also issued guidelines on anti-money laundering and combating terrorism financing, which provide guidance on processes, systems, and practices for financial institutions to comply with AML/CFT requirements.

Legislative Frameworks

Trinidad and Tobago has implemented various legislative frameworks to combat money laundering and terrorist financing, including:

  • Miscellaneous Provisions (POCA, ATA and FIUA) Act 2018
  • Financial Obligations (Amendment) Regulations 2018
  • Proceeds of Crime (Large Transactions) Order 2019

Mutual Evaluation Report and Thematic Reports

A mutual evaluation report conducted by the CFATF found that Trinidad and Tobago made progress in implementing its AML/CFT regime but identified areas for improvement. The report highlighted the need for strengthened cooperation between law enforcement agencies and improved customer due diligence requirements.

Thematic reports on anti-money laundering and combating terrorism financing have also been published, highlighting key issues and challenges faced by financial institutions in Trinidad and Tobago.

Conclusion

In conclusion, the Central Bank of Trinidad and Tobago has taken a proactive approach towards ensuring that financial institutions operating in the country comply with AML/CFT requirements. The bank’s guidelines and circular letters provide valuable guidance to financial institutions, while the legislative frameworks and mutual evaluation report demonstrate the country’s commitment to combating money laundering and terrorist financing.