Financial Institutions Must Uphold Confidentiality in Legal Advice
In an effort to combat money laundering and terrorist financing, financial institutions and listed businesses in Trinidad and Tobago are required to maintain confidentiality when receiving information from clients or other parties seeking legal advice.
Confidentiality Requirements
According to the Financial Obligations Regulations, 2015, financial institutions and listed businesses must not disclose any information received in connection with the provision of legal advice unless it is necessary for the purpose of furthering a criminal purpose known to the professional legal adviser. This means that:
- Any information shared by clients or other parties seeking legal advice cannot be disclosed without their consent.
- Information can only be disclosed where there are grounds to believe that the information is being used to facilitate a criminal activity.
Compliance Program Requirements
Financial institutions and listed businesses are required to review their compliance programs annually or as specified by the relevant Supervisory Authority. This includes:
- Evaluating compliance with relevant legislation and guidelines
- Submitting reports and recommendations to the Board of Directors and the Supervisory Authority
Customer Due Diligence Measures
In addition, financial institutions and listed businesses are required to conduct customer due diligence measures when entering into business relationships or engaging in transactions valued at $90,000 or more. This includes:
- Identifying customers and beneficial owners
- Understanding the nature of their business
- Ensuring that all relevant documentation is available upon request
Exceptions for Third-Party Financial Institutions
The regulations also provide for exceptions where a financial institution or listed business may rely on a third-party financial institution or listed business to perform elements of customer due diligence. However, the ultimate responsibility for these measures remains with the financial institution or listed business.
Purpose and Benefits
These measures are aimed at preventing money laundering and terrorist financing, and ensuring that financial institutions and listed businesses comply with their legal obligations to maintain confidentiality in the provision of legal advice. By upholding confidentiality and conducting thorough due diligence, financial institutions can help prevent illegal activities and maintain a reputation for trustworthiness.