Title: Trinidad and Tobago’s Financial Institutions and Listed Businesses Enhance AML/CFT Compliance through Training and Strategic Planning
Background
Trinidad and Tobago’s Financial Institutions (FIs) and Listed Businesses (LBs) are taking steps to strengthen their adherence to the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws. The need for more stringent compliance measures came to light following the recent disclosure that the Financial Intelligence Unit of Trinidad and Tobago received 1,831 suspicious transaction reports worth an astonishing $27 Billion during the 2019-2020 period.
Comprehensive AML/CFT Training Programs
In response to this heightened regulatory environment, FIs and LBs in Trinidad and Tobago are focusing on the implementation of extensive AML/CFT training programs. The Financial Obligation Regulations require organizations to train their personnel to uphold their obligations under the legal framework. This includes identification of suspicious transactions and adherence to AML/CFT techniques.
- Training programs cover:
- Identification of red flags and suspicious transactions
- Understanding money laundering and terrorist financing techniques
- Reporting and documentation requirements
- Regulatory updates and changes
Maintaining a Relevant Compliance Programme
Each organization is required to have a Compliance Programme approved by its Board of Directors. The Compliance Programme facilitates adherence to AML/CFT laws and minimizes risks related to money laundering and terrorist financing in the ever-evolving threat landscape.
- Features of a Compliance Programme:
- Policies, procedures, and controls
- Regular risk assessments
- Due diligence and customer screening
- Employee training
- Reporting mechanisms
Implementing a Strategic Plan
A well-structured Strategic Plan is essential for FIs and LBs in navigating the complex AML/CFT regulatory environment in Trinidad and Tobago. A Strategic Plan functions as a roadmap for accomplishing an organization’s strategic goals and objectives, providing clear direction in implementing required activities, setting targets, and allocating necessary resources.
Success Stories in the Financial Sector
Recent successes in the financial sector, such as the Trinidad and Tobago Stock Exchange Limited (TTSE) surpassing TT$100million trades on its online trading platform, TOP, demonstrate the importance of these proactive measures. With investors now having the ability to self-direct trades on the local stock market for a lower fee than broker-directed trades, it is crucial for FIs and LBs to stay one step ahead and uphold the utmost transparency in financial transactions to attract investor trust and maintain the integrity of the financial market.