Financial Crime World

Financial Fraud in Trinidad and Tobago: Understanding the Issue

The Financial Intelligence Unit of Trinidad and Tobago (FIUTT) has been actively working to combat financial fraud, but despite efforts, the country continues to be plagued by cases of overpayment scams and romance scams.

The Problem with Financial Fraud

According to FIUTT’s 2023 Annual Report, the unit has noticed an increase in reports of suspicious transactions and activities related to these types of fraud. In 2021, the unit recorded approximately 100 suspected romance scam/fraud victims, resulting in losses of over TTD 2.3 million to vulnerable citizens.

Types of Financial Fraud

  • Overpayment scams: fraudulent transactions where individuals are tricked into sending money to scammers
  • Romance scams: fraudulent relationships built on false pretenses with the goal of extracting money from victims

Efforts to Combat Financial Fraud

The FIUTT has been working closely with financial institutions and listed businesses to ensure compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. The unit also issues advisories warning citizens about the dangers of romance scams and frauds.

Collaboration with Stakeholders

  • Requests information from entities if there is a sufficient and lawful basis for doing so
  • Works closely with financial institutions and listed businesses to prevent financial fraud

Progress in Combating Financial Fraud

Trinidad and Tobago has made significant progress in rectifying deficiencies identified in its 4th Round Mutual Evaluation Report. The country achieved: + Compliant ratings in 26 recommendations + Largely compliant ratings in nine recommendations + Partially compliant ratings in four recommendations

Strengthening the AML/CFT/CPF Regime

The FIUTT is committed to working with the government and other stakeholders to strengthen the country’s AML/CFT/CPF regime and prevent financial fraud. As part of its efforts, the unit has been involved in various initiatives aimed at raising awareness about the dangers of financial fraud and promoting a culture of transparency and accountability.

Conclusion

Financial fraud is a serious problem that affects many countries around the world, including Trinidad and Tobago. The FIUTT plays a critical role in combating this type of fraud by gathering and analyzing financial intelligence and working closely with other stakeholders to prevent it.