Here is the converted article in Markdown format:

Financial Institutions Must Verify Trustee Identity and Purpose

In an effort to combat money laundering and terrorist financing, the Financial Obligations Regulations of 2010 have introduced new requirements for financial institutions and listed businesses.

Verification of Customer Information

According to Regulation 18, financial institutions must perform due diligence procedures to ensure that any information provided by customers is accurate and complete. This includes:

Obtaining a certified copy of the Deed of Trust and evidence of the appointment of the trustee
Verifying the identity of the trustee and the purpose of the trust

If discrepancies are found, the financial institution must make every effort to obtain the correct information. In cases where the information cannot be verified, the financial institution must discontinue business relationships with the customer and report the matter to the Compliance Officer.

Correspondent Banking Requirements

Regulation 21 defines correspondent banking as the provision of banking services by one bank in Trinidad and Tobago to another bank in a foreign country. Correspondent banks are required to:

Collect sufficient information about their respondent banks, including understanding the nature of business they are required to undertake
Ensure that respondent banks are effectively supervised by competent authorities
Assess the anti-money laundering controls of respondent banks
Obtain approval from senior management before establishing new correspondent relationships

Shell Banks Prohibited

Regulation 22 prohibits banks from entering or continuing a correspondent banking relationship with a bank incorporated in a jurisdiction where it has no physical presence, or which is unaffiliated with a financial group regulated by a supervisory authority in a country where the Recommendations of the Financial Action Task Force are applicable.

Technology and Money Laundering

Regulation 23 requires financial institutions to:

Pay special attention to money laundering patterns that may arise from new or developing technology that might favor anonymity
Take appropriate measures to address such patterns

Additionally, financial institutions must put special know-your-customer policies in place to address specific concerns associated with non-face-to-face business relationships or transactions.

Insurance Companies Must Also Comply

Regulation 24 requires insurance companies to:

Undertake customer identification procedures in respect of a party entering into an insurance contract
Establish the true nature of the principal and make appropriate enquiries where the party acts or appears to act on behalf of a principal

By implementing these regulations, financial institutions can help combat money laundering and terrorist financing, ensuring a safer and more secure financial system.