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Combating the Financing of Terrorism Compliance Unit Ministry of National Security

Anti-Money Laundering / Combating the Financing of Terrorism Compliance Unit Ministry of National Security

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Anti-Money Laundering / Combating the Financing of Terrorism Compliance Unit Ministry of National Security . Objectives of the AML/CFT Compliance Unit of the Ministry of National Security. Receiving , analysing and responding to requests and reports  from FATF and CFATF ; - PowerPoint PPT Presentation

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Page 1: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Anti-Money Laundering /

Combating the Financing of

Terrorism

Compliance UnitMinistry of

National Security

Page 2: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Objectives of the AML/CFT

Compliance Unit of the Ministry of National

Security.

Page 3: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

• Receiving, analysing and responding to requests and reports  from FATF and CFATF;

• Identifying and recommending the way forward in respect of existing deficiencies within the AML/CFT framework;

Page 4: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

• Cooperating and Co-ordinating with the Cabinet appointed AML/CFT Committee for the framing of recommendations for the formulation of National Policy in respect of AML/CFT.

Page 5: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The National AML/CFT Committee

Page 6: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Purpose :

To bring together all national stakeholders to contribute the development and formulation of AM/CFT recommendations for policy, legislation, reforms and implementation of action plans.

Page 7: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The Committee consist of:- Director, (AML/CFT) Unit, Ministry

of National Security (Chair)  Senior Legal Advisor to the

Attorney General (Deputy Chairperson)

The Director of Public Prosecutions

The Commissioner of Police

Page 8: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The Chief Immigration Officer -Ministry of National Security

The Comptroller of Customs and Excise

The Deputy Permanent Secretary -Ministry of Finance

The Head, Financial Intelligence Unit-Ministry of Finance 

Page 9: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The Head, Financial Investigations Branch-Ministry of National Security

 The Head, Central Authority Unit, Office of the Attorney General

The Legal Adviser to the Minister of Justice

 

Page 10: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Representatives of each of the following:

The Legislative Drafting Department

The Trinidad and Tobago Securities and Exchange Commission

The Central Bank of Trinidad and Tobago

Page 11: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

What is Money Laundering?

Money laundering involves taking criminal proceeds and disguising their illegal source.

Page 12: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Simply put, money laundering is the process of making dirty money look clean.

Money laundering often involves a complex series of transactions that are usually difficult to separate.

Page 13: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Three Stages in the Money Laundering Cycle

Stage 1 PlacementThe physical disposal of cash or assets derived from criminal activity.

Page 14: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

This phase can involve transactions such as:

• Breaking up large amounts of cash into smaller sums and depositing them directly into a bank account.

• Transporting cash across borders to deposit in foreign financial institutions, or to buy high-value goods — such as artwork, antiques, and precious metals and stones — that can then be resold for payment by check or bank transfer.

Page 15: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Stage 2 Layering

Involves the separation of illicit proceeds from their source by layers of financial transactions intended to conceal the origin of the proceeds.

Page 16: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Transactions within this phase:• Sending wire transfers of funds from one account to another, • Converting deposited cash into monetary instruments (e.g. traveler’s checks).• Reselling high-value goods and prepaid access/stored value products.• Investing in real estate and legitimate businesses.• Placing money in investments such as stocks, bonds or life insurance

Page 17: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Stage 3 Integration

This stage entails using laundered proceeds in seemingly normal transactions to create the perception of legitimacy.

Page 18: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security
Page 19: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Effect of Money Laundering and Terrorist Financing on the economy

• It destabilizes the economy and financial systems

• Increased crime and corruption

• Undermining the legitimate private

sector• Loss of tax revenue• Reputational risk for the country• Social Cost

Page 20: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Trinidad and Tobago Legislation on Money Laundering and the

Financing of Terrorism

Page 21: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Financial Institutions and listed businesses are required to have systems in place to ensure full compliance with the provisions of the Acts.

Page 22: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

a)The Proceeds of Crime Act Chapter 11:27 (as amended)

b)The Financial Intelligence Unit of Trinidad and Tobago Act No. 11 of 2009 (as amended)

c)The Financial Obligations Regulations 2010

Page 23: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

d)The Anti-Terrorism Act 2005 (as amended)

e)Financial Intelligence Unit Regulations 2011

Page 24: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

POCA establishes procedures for the confiscation of proceeds of crime and for the criminalising of money laundering. It also outlines the circumstances in which a financial institution and/or its employees shall be guilty of the offence of money laundering.

This is dealt with in Sections 43-46

Page 25: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The FIU Act 2009 establishes a department, within the Ministry of Finance for the collection, analysis, dissemination and exchange of financial intelligence and information among law enforcement authorities, financial institutions and listed businesses in Trinidad and Tobago and internationally.

Page 26: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The Financial Obligations Regulations 2010 establishes minimum requirements to which financial institutions and listed businesses must abide to ensure that they are not used as a vehicle for money laundering.

Page 27: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

The Anti-Terrorism Act 2005 criminalizes terrorist the financing of terrorism and introduces the procedure for the freezing of terrorist’s assets or funds.

Page 28: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

As a consequence the suite of AML/CFT legislation ensures that Real Estate agents take certain steps to become compliant.

Page 29: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Definition of Real Estate under POCA

Any natural or legal person, partnership or firm carrying on the business of buying, selling or leasing land and any interest in land or any, buildings thereon and appurtenances thereto.

Page 30: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Risk Indicators for Real Estate Agents

• The payment of a cash deposit under a contract and then the cancellation of the contract for no apparent reason

• Buyers wanting to make payment in cash

• Cash is being transferred by an unrelated third parties for the acquisition of the property

Page 31: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Core requirements that will affect real estate agents include:-

• customer due diligence (CDD),

• suspicious transaction reporting,

• development of a compliance program and

• record keeping.

Page 32: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Customer due diligence

Real Estate agents will be required to:• identify and verify clients

• identify beneficial ownership involving corporate clients

• conduct on going due diligence and

transaction monitoring throughout the business relationship

Page 33: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Record keeping

Real estate agents will be required to collect information concerning, and retain records of, their clients' identity and their on going activities.

Page 34: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Reporting

Real estate agents will be required to make a report to the Financial Intelligence Unit if they suspect on reasonable grounds that a client is not who they claim to be or that information about a service may be relevant to tax evasion, a criminal offence, proceeds of crime or a money laundering or terrorism financing offence.

Page 35: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

AML/CTF program

Real Estate Agents will be required to develop internal AML/CTF procedures and guidelines and ensure adequate AML/CTF staff training, in accordance with section 55(5) of the Proceeds of Crime Act

Page 36: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

Effects on Real Estate Agents of Trinidad and Tobago being

BLACKLISTED

Page 37: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

• Drop in Foreigners investing in local real estate

• Foreign wire transfers and correspondent banking between Trinidad and Tobago will be slowed due to applied extra scrutiny,

Page 38: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

• Local banks will have to spend additional resources on scrutiny which will be passed on to the customer

• Non-acceptance of credit cards, foreign bank drafts, traveller cheques issued by banks within Trinidad and Tobago

• lowering of citizens’ current standard of living.

Page 39: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

•US banks refusing to recognise entities incorporated in Trinidad and Tobago

Page 40: Anti-Money  Laundering / Combating the Financing of  Terrorism Compliance Unit Ministry of National Security

End of Presentation