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FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
In February 2010, Trinidad and Tobago made a high-level political
commitment to work with the FATF and CFATF to address its
strategic AML/CFT deficiencies. The FATF has determined that
certain strategic AML/CFT deficiencies remain. Trinidad and
Tobago should continue to work on implementing its action plan to
address these deficiencies, including by: (1) implementing
adequate procedures to identify and freeze terrorist assets
without delay (Special Recommendation III); and (2) ensuring a
fully operational and effectively functioning Financial Intelligence
Unit, including supervisory powers (Recommendation 26). The
FATF encourages Trinidad and Tobago to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Trinidad and Tobago (TT) has a well-developed banking sector,
and its importance as a regional financial center has increased in
recent years. With few barriers to trade or international
commerce, the potential for illegal financial flows continues.
Drug-trafficking, illegal arms sales and fraud continue to be the
most likely sources of laundered funds. Illicit drug trafficking is
considered the primary motive for money laundering. It is
suspected that criminal assets laundered in TT are derived from
domestic criminal activity as well as from the activity of nationals
involved in crime abroad. According to information from financial
institutions and legal analysts, financial crimes in general are
increasing, particularly those involving the use of fraudulent
checks, wire transfers, and related instruments in the banking
sector. There is no significant black market for smuggled goods in
TT, but the incidence of drug money supporting illegal arms
imports is thought to be growing. Officials in the financial
community report that funds generated from the arms and
ammunition trade are being laundered through the financial
system, mainly through simple bank branch currency trades below
the suspicious activity reporting threshold. There are indications
trade-based money laundering occurs in Trinidad, though the
evidence is speculative, not empirical.
TT does not have a significant traditional offshore business
sector. Although its banking system is regarded as one of the
strongest and most efficient in the region, costs of banking are
higher here than neighboring countries due to limited exploitation
of new technology and limited competition. Local banks do offer
foreign currency accounts, but there is no interest offered, so
customers have no incentive to maintain US cash reserves in the
bank for extended periods of time.
There are six free trade zones (FTZs) in Trinidad and Tobago
where exporting of manufactured products takes place. There is
no evidence the FTZs are involved in money laundering schemes,
and companies operating in the FTZs are required to submit tax
returns quarterly and audited financial statements yearly.
Companies must present proof of legitimacy and are subject to
background checks prior to being allowed to operate in the FTZs.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, finance houses, insurance companies,
securities dealers, investment advisors, real estate agents, motor
vehicle dealers, gaming enterprises, national lotteries, jewelers,
accountants, attorneys or other independent legal professionals,
art dealers, trust and company service providers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, finance houses, insurance companies,
securities dealers, investment advisors, real estate agents, motor
vehicle dealers, gaming enterprises, national lotteries, jewelers,
accountants, attorneys or other independent legal professionals,
art dealers, trust and company service providers
Number of STRs received and time frame: 199 from February to
December 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: $0 in 2010 civilly: $0 in 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Trinidad and Tobago is a member of the Caribbean Financial
Action Task Force (CFATF), a Financial Action Task Force (FATF)-
style regional body. Its most recent mutual evaluation can be
found here: http://www.cfatf-gafic.org/mutual-evaluation-reports.
html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
During 2010, the FATF identified Trinidad and Tobago as a
jurisdiction with significant AML/CFT vulnerabilities. In response,
the Government of Trinidad and Tobago (GOTT) has made high-
level political commitments to address its deficiencies, including
implementing adequate procedures to identify and freeze terrorist
assets without delay, implementing procedures for the
confiscation of funds related to money laundering, and ensuring
Trinidad and Tobago’s financial intelligence unit (FIU), established
by law in October 2009, would be fully operational. In November
2010, the Cabinet approved regulations pertaining to the Trinidad
and Tobago FIU, although a director was not appointed in 2010.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Trinidad and Tobago’s position off the coast of Venezuela, its
porous borders, and its direct transportation routes to Europe,
West Africa, the United States, Canada, and the Caribbean make
it an ideal location for drug transshipment. Trafficking of cocaine
and marijuana originating from South America and from the
greater Caribbean is prevalent. Drug production and illegal use in
Trinidad and Tobago center on marijuana.
The Government of Trinidad and Tobago has long struggled to
effectively coordinate its drug-control efforts. Sustainability,
corruption, and gaps in legislative implementation remain
challenges. In August, the Government of Trinidad and Tobago
declared a State of Emergency (SOE) in response to what it
described as a significant threat to national security. The SOE
resulted in thousands of arrests which temporarily diminished the
incidence of drug trafficking and general crime.
The Government continues to cooperate with international
partners in combating the illegal drug trade. Trinidad and Tobago
is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Trinidad and Tobago is a destination, source, and transit country
for adults and children subjected to sex trafficking and adults
subjected to forced labor. Some women and girls from South
America and the Dominican Republic are subjected to sex
trafficking in Trinbagonian brothels and clubs. Trinbagonian
teenagers enticed into providing sex acts for shelter or material
goods by local men are a high risk group for sex trafficking.
Economic migrants from the region and from Asia may be
vulnerable to forced labor. Some companies operating in Trinidad
and Tobago reportedly hold the passports of foreign employees,
a common indicator of human trafficking, until departure.
Trafficking victims from Trinidad and Tobago have in the past
been identified in the United Kingdom and the United States. As a
hub for regional travel, Trinidad and Tobago also is a potential
transit point for trafficking victims traveling to Caribbean and
South American destinations.
The Government of Trinidad and Tobago does not fully comply
with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. The government
demonstrated some progress during the reporting period, most
notably by formalizing and implementing victim identification
procedures, training numerous officials, and identifying more
potential victims. Legislation that would criminalize all forms of
human trafficking and provide extensive protections to trafficking
victims was introduced to parliament in April 2011. The absence
of such legislation and related policies or laws on victim
protection, however, limited the government’s ability to prosecute
trafficking offenders and provide comprehensive assistance for
trafficking victims during the reporting period.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Trinidad and Tobago faced a number of challenges related to
border control and limited law enforcement capacity. A small
number of Trinidadians also have connections to radical elements
outside the country. The Government of Trinidad and Tobago
continued to partner with U.S. law enforcement authorities,
making efforts to improve its ability to detect, deter, and
investigate acts of terrorism.
The Government of Trinidad and Tobago has canceled the
purchase of certain offshore patrol vessels described in prior
reports and is now seeking to increase domestic security though
improved radar and aerial capacity and more effective coastal
patrols in an effort to counter transnational trafficking and bolster
border security. Trinidad and Tobago participated in the
Advanced Passenger Information System.
Although the mandate of Trinidad and Tobago's Financial
Intelligence Unit (FIU), established in late 2009, covered terrorist
finance, the FIU was not fully operational in 2010 because it
lacked supervisory powers and thus did not successfully pursue
any terrorist finance cases. With respect to the most recent
Caribbean Financial Action Task Force progress report on
Trinidad and Tobago, the government was urged to take
immediate action to implement adequate procedures to identify
and freeze terrorist assets. Additionally, effective implementation
of new measures dealing with both listing terrorists and their
entities and freezing terrorist property was required. Another key
recommendation was implementation of adequate procedures
permitting the confiscation of funds derived from money
laundering.
Trinidad is a member of CARICOM and the OAS Inter-American
Committee Against Terrorism, and has received funds through the
Caribbean Basin Security Initiative.
Date: 16 February 2012
In February 2010, Trinidad and Tobago made a high-level political
commitment to work with the FATF and CFATF to address its
strategic AML/CFT deficiencies. The FATF has determined that
certain strategic AML/CFT deficiencies remain. Trinidad and
Tobago should continue to work on implementing its action plan to
address these deficiencies, including by: (1) implementing
adequate procedures to identify and freeze terrorist assets
without delay (Special Recommendation III); and (2) ensuring a
fully operational and effectively functioning Financial Intelligence
Unit, including supervisory powers (Recommendation 26). The
FATF encourages Trinidad and Tobago to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Trinidad and Tobago (TT) has a well-developed banking sector,
and its importance as a regional financial center has increased in
recent years. With few barriers to trade or international
commerce, the potential for illegal financial flows continues.
Drug-trafficking, illegal arms sales and fraud continue to be the
most likely sources of laundered funds. Illicit drug trafficking is
considered the primary motive for money laundering. It is
suspected that criminal assets laundered in TT are derived from
domestic criminal activity as well as from the activity of nationals
involved in crime abroad. According to information from financial
institutions and legal analysts, financial crimes in general are
increasing, particularly those involving the use of fraudulent
checks, wire transfers, and related instruments in the banking
sector. There is no significant black market for smuggled goods in
TT, but the incidence of drug money supporting illegal arms
imports is thought to be growing. Officials in the financial
community report that funds generated from the arms and
ammunition trade are being laundered through the financial
system, mainly through simple bank branch currency trades below
the suspicious activity reporting threshold. There are indications
trade-based money laundering occurs in Trinidad, though the
evidence is speculative, not empirical.
TT does not have a significant traditional offshore business
sector. Although its banking system is regarded as one of the
strongest and most efficient in the region, costs of banking are
higher here than neighboring countries due to limited exploitation
of new technology and limited competition. Local banks do offer
foreign currency accounts, but there is no interest offered, so
customers have no incentive to maintain US cash reserves in the
bank for extended periods of time.
There are six free trade zones (FTZs) in Trinidad and Tobago
where exporting of manufactured products takes place. There is
no evidence the FTZs are involved in money laundering schemes,
and companies operating in the FTZs are required to submit tax
returns quarterly and audited financial statements yearly.
Companies must present proof of legitimacy and are subject to
background checks prior to being allowed to operate in the FTZs.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, finance houses, insurance companies,
securities dealers, investment advisors, real estate agents, motor
vehicle dealers, gaming enterprises, national lotteries, jewelers,
accountants, attorneys or other independent legal professionals,
art dealers, trust and company service providers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, finance houses, insurance companies,
securities dealers, investment advisors, real estate agents, motor
vehicle dealers, gaming enterprises, national lotteries, jewelers,
accountants, attorneys or other independent legal professionals,
art dealers, trust and company service providers
Number of STRs received and time frame: 199 from February to
December 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: $0 in 2010 civilly: $0 in 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Trinidad and Tobago is a member of the Caribbean Financial
Action Task Force (CFATF), a Financial Action Task Force (FATF)-
style regional body. Its most recent mutual evaluation can be
found here: http://www.cfatf-gafic.org/mutual-evaluation-reports.
html
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
During 2010, the FATF identified Trinidad and Tobago as a
jurisdiction with significant AML/CFT vulnerabilities. In response,
the Government of Trinidad and Tobago (GOTT) has made high-
level political commitments to address its deficiencies, including
implementing adequate procedures to identify and freeze terrorist
assets without delay, implementing procedures for the
confiscation of funds related to money laundering, and ensuring
Trinidad and Tobago’s financial intelligence unit (FIU), established
by law in October 2009, would be fully operational. In November
2010, the Cabinet approved regulations pertaining to the Trinidad
and Tobago FIU, although a director was not appointed in 2010.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Trinidad and Tobago’s position off the coast of Venezuela, its
porous borders, and its direct transportation routes to Europe,
West Africa, the United States, Canada, and the Caribbean make
it an ideal location for drug transshipment. Trafficking of cocaine
and marijuana originating from South America and from the
greater Caribbean is prevalent. Drug production and illegal use in
Trinidad and Tobago center on marijuana.
The Government of Trinidad and Tobago has long struggled to
effectively coordinate its drug-control efforts. Sustainability,
corruption, and gaps in legislative implementation remain
challenges. In August, the Government of Trinidad and Tobago
declared a State of Emergency (SOE) in response to what it
described as a significant threat to national security. The SOE
resulted in thousands of arrests which temporarily diminished the
incidence of drug trafficking and general crime.
The Government continues to cooperate with international
partners in combating the illegal drug trade. Trinidad and Tobago
is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Trinidad and Tobago is a destination, source, and transit country
for adults and children subjected to sex trafficking and adults
subjected to forced labor. Some women and girls from South
America and the Dominican Republic are subjected to sex
trafficking in Trinbagonian brothels and clubs. Trinbagonian
teenagers enticed into providing sex acts for shelter or material
goods by local men are a high risk group for sex trafficking.
Economic migrants from the region and from Asia may be
vulnerable to forced labor. Some companies operating in Trinidad
and Tobago reportedly hold the passports of foreign employees,
a common indicator of human trafficking, until departure.
Trafficking victims from Trinidad and Tobago have in the past
been identified in the United Kingdom and the United States. As a
hub for regional travel, Trinidad and Tobago also is a potential
transit point for trafficking victims traveling to Caribbean and
South American destinations.
The Government of Trinidad and Tobago does not fully comply
with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. The government
demonstrated some progress during the reporting period, most
notably by formalizing and implementing victim identification
procedures, training numerous officials, and identifying more
potential victims. Legislation that would criminalize all forms of
human trafficking and provide extensive protections to trafficking
victims was introduced to parliament in April 2011. The absence
of such legislation and related policies or laws on victim
protection, however, limited the government’s ability to prosecute
trafficking offenders and provide comprehensive assistance for
trafficking victims during the reporting period.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Trinidad and Tobago faced a number of challenges related to
border control and limited law enforcement capacity. A small
number of Trinidadians also have connections to radical elements
outside the country. The Government of Trinidad and Tobago
continued to partner with U.S. law enforcement authorities,
making efforts to improve its ability to detect, deter, and
investigate acts of terrorism.
The Government of Trinidad and Tobago has canceled the
purchase of certain offshore patrol vessels described in prior
reports and is now seeking to increase domestic security though
improved radar and aerial capacity and more effective coastal
patrols in an effort to counter transnational trafficking and bolster
border security. Trinidad and Tobago participated in the
Advanced Passenger Information System.
Although the mandate of Trinidad and Tobago's Financial
Intelligence Unit (FIU), established in late 2009, covered terrorist
finance, the FIU was not fully operational in 2010 because it
lacked supervisory powers and thus did not successfully pursue
any terrorist finance cases. With respect to the most recent
Caribbean Financial Action Task Force progress report on
Trinidad and Tobago, the government was urged to take
immediate action to implement adequate procedures to identify
and freeze terrorist assets. Additionally, effective implementation
of new measures dealing with both listing terrorists and their
entities and freezing terrorist property was required. Another key
recommendation was implementation of adequate procedures
permitting the confiscation of funds derived from money
laundering.
Trinidad is a member of CARICOM and the OAS Inter-American
Committee Against Terrorism, and has received funds through the
Caribbean Basin Security Initiative.
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| TRINIDAD & TOBAGO |
| KnowYourCountry |
|
___________________________________________________
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and Exchange
of Information for Tax Purposes has issued a Phase 1 peer review for
Trinidad & Tobago
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
AML News / Updates
February 10, 2011 - The Global Forum on Transparency and Exchange
of Information for Tax Purposes has issued a Phase 1 peer review for
Trinidad & Tobago
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
|
| Last Updated: 16 April 2012 |