There may be legal entities in this country engaged in conducting business with entities involved in terrorism activities.
This is according to information provided by the Financial Intelligence Unit of T&T (FIUTT) to the Caribbean Financial Action Task Force (CFATF.)
The information was published in the task force’s Mutual Evaluation Report of T&T, published this month.
The task force conducted an on-site visit to T&T from January 12 to 23, 2015.
The purpose of the visit was to provide a summary of the anti-money laundering and countering the financing of terrorism measures in place in T&T.
The task force also analysed the level of compliance with the Financial Action Task Force’s 40 Recommendations and the level of effectiveness of T&T’s anti-money laundering systems.
The last such report was produced in 2005.
T&T is currently undertaking its National Risk Assessment (NRA) in relation to money laundering and terrorist financing.
According to the report, the large volume of currency declarations being reported to the FIUTT by the Customs and Excise Department coupled with the increasing number of reports the FIUTT has been receiving from the monetary value transaction service providers and the monetary value of cash seized by the Customs and Excise Division are indicators that significant amounts of monies are being moved across the border.
Improved compliance
While T&T has improved in terms of compliance with the FATF recommendations in 2005, it is still non-compliant in two areas.
In 2005 T&T’s Mutual Evaluation concluded that the country was compliant with one recommendation, largely compliant with six recommendations and partially compliant with 13 recommendations.
Then, the country was non-compliant with 28 recommendations.
The most recent report shows that T&T is non-compliant on two recommendations pertaining to targeted financial sanctions related to proliferation and non-profit organisations.
The report noted that no legal authority had been identified relative to implementing and enforcing targeted financial sanctions and no measures have been adopted for monitoring and ensuring compliance by financial institutions with any laws governing this area.
It also noted that there were no laws requiring the Non-Profit Organisations (NPO) Sector to be subject to an anti-money laundering or countering terrorism financing regime.
The country was rated this year as partially compliant with 13 recommendations, largely compliant with 13 recommendations and compliant with 12 recommendations.
Inadequate anti-terrorism measures
The report said there did not appear to be a thorough appreciation of the risk of terrorism financing amongst the relevant authorities in the country.
It added that resources to effectively investigate and prosecute terrorism financing were inadequate.
“There is no comprehensive policy on the proliferation of financing of weapons of mass destruction and there is no adequate legislation on this issue.”
The report also recommended that the framework for targeted sanctions related to the financing of terrorism needed to be significantly tightened up.
“There are not adequate sanctions or prohibitions in respect of making funds or facilities available to designated persons and all the requirements for freezing funds are not covered in the Anti-Terrorism Act.”
The report noted that a report of terrorism financing was submitted since 2013 and there was “no evidence to suggest that any actions had been taken against the individuals or entities mentioned in the report.”
It said there was no indication that terrorism financing was prioritized and properly investigated by law enforcement agencies as there had been no designation of entities or persons as terrorists, no assets restrained nor any arrests or convictions for terrorism financing offences.
Money laundering not a priority for law enforcement
The report indicated that while T&T had robust legislation to gather financial intelligence and to investigate money laundering, terrorism financing and associated offences, there was a lack of priority in investigating these offences.
T&T has two main pieces of legislation to deal with these offences: the Proceeds of Crime Act and the Anti-Terrorism Act.
The FIUTT has disseminated several intelligence reports to law enforcement agencies as part of its mandate.
Three of these reports have led to the arrest and prosecution of five individuals for money laundering offences.
However, the report observed that a large number of Suspicious Activity Reports received by the FIUTT are still awaiting analysis or have been filed for intelligence purposes.