Regaining “High Ground”
Money laundering has had devastating social, political and economic consequences in the international sphere and is now a present and real threat to Trinidad and Tobago’s national security. Why? Because it provides the fuel for a full range of localized and trans-border criminal enterprises such as drugs, illegal arms and the financing of terrorism.
The experience in T&T is that the banking, insurance, money transmitting entities and retail outlets with high cash flow intakes are representative of the more customary delivery channels used to launder money.
The success of criminal enterprise is directly correlated with the degree to which this corrosion filters into legitimate business and banking activity.
Confronting this societal menace requires a collaborative effort between the business and banking sectors, policy and law-makers in government, designated monitoring and regulatory bodies and the wider public. It necessitates the adoption of stringent preventative measures among all interest groups (for example the “know your customer” policy); the unrelenting exercise of vigilance and dispensing of justice without delay once an infraction has been unearthed. The Trinidad and Tobago Chamber of Industry and Commerce is unreservedly committed to this challenge.
In 2009 this country was earmarked for “enhanced scrutiny” and subjected to a rigorous “follow up process” on account of identified strategic deficiencies in its anti-money laundering architecture. In spite of advances made in fixing some of these deficiencies, Trinidad and Tobago was earlier this year identified as a “jurisdiction not making sufficient progress” and has the potential to be “black listed”.
The Financial Action Task Force (FATF) has identified three specific criteria which were all part of an earlier action plan developed by them which T&T committed to implement. These warrant corrective action by T&T and assessment by the FATF before June 2011 when the next plenary meeting takes place. These are:
(1) Establishment of a fully operational and effectively functioning Financial Intelligence Unit, possessing supervisory powers
(2) Implementation of adequate procedures for the confiscation of laundered funds; and
(3) Putting into effect adequate procedures to identify and freeze terrorist assets, without delay
Like the Bankers Association of Trinidad and Tobago, the Chamber commiserates with the prevailing tide of national concern regarding T&T’s compliance ratings as a member of the Caribbean Financial Action Task Force. Our country is now under enhanced scrutiny locally, regionally and internationally.
We must now seek to preserve our country’s reputation and regional profile. We are optimistic, however, that this impending disaster will be averted through the continued high level of political commitment and timely action as we all understand the implications of being blacklisted.
This country witnessed the harsh fall out to some of our neighbouring countries when they were blacklisted in 2000 and 2001 and indeed the difficulty in being removed from the list even after corrective action was taken.
At a time when we are marketing our country as “open for business” the Government must certainly persist in treating with the deficiencies identified as top priority.
The Chamber calls on the Government to ensure that this impending disaster will be averted by taking immediate action on the remaining deficiencies, thereby allowing time for the FATF’s “on site visit” to Port of Spain to scrutinize the action taken and report thereon at the June 2011 meeting.
