Money laundering control: the missing link in Trinidad and Tobago
| Pages | 694-720 |
| Published date | 07 October 2019 |
| Date | 07 October 2019 |
| DOI | https://doi.org/10.1108/JMLC-01-2019-0003 |
| Author | Sherene Alicia Murray-Bailey |
Money laundering control: the
missing link in Trinidad
and Tobago
Sherene Alicia Murray-Bailey
Magistrate, Judiciary of the Republic of Trinidad and Tobago, Port of Spain,
Trinidad and Tobago
Abstract
Purpose –This paper aims to examine the socio-economic effect of money laundering in Trinidad and Tobago.
It assesses the efficacy of the administration of justice in addressing money laundering and the confiscation of
the proceeds of crime. It identifies deficiencies within the existing anti-money laundering system and provides
recommendations to ensure a robust anti-money laundering frameworkinkeepingwithinternational standards.
Design/methodology/approach –The paper embraces a pluralist approach. It uses qualitative and
quantitativemethods and uses a case study approach with contextual qualitativeanalysis. Empirical data are
used and causalconnections are linked to the analysis.
Findings –The paper highlights a fragmentedand inefficient system in addressing money laundering and
the confiscation of the proceeds of crime. It concludes that a robust money laundering framework, which
meets international standards, requires strong legislative and institutional alignments that promote
timeliness,collaboration and efficiency across many agencies.
Research limitations/implications –Findings are limited to Trinidad and Tobago and to the period
ending December2018. Accordingly, these findings lack generalisability.
Practical implications –Trinidad and Tobago needs to revisit its silo approach to anti-money
laundering (AML). New policies which embrace harmonisation, collaboration and timeliness i n
adjudicating upon ML matters are critical.
Social implications –The negative socio-economic effects of money-laundering are considered in this
paper. A disruption of money laundering and the confiscation of the proceeds of crime, benefits society
economicallyand socially.
Originality/value –Trinidad and Tobagohas been listed as a country with strategicAML deficiencies by
the Financial Action TaskForce (FATF). This study provides assistance in guiding muchneeded reform in
the anti-moneylaundering area and has not before been undertaken.
Keywords Money laundering, Trinidad and Tobago, Anti-money laundering, Proceeds of crime
Paper type Research paper
Executive summary
In the contemporary world, governments worldwide are continuously adapting to change
and proposing major reformsin an attempt to re-define their futurestatus. This is especially
required when existing practices and procedures fail to give the requisite results, and
pressures, both international and local, converge to create an atmosphere where change is
essential for a country’svery survival.
From 2009 onward, Trinidad and Tobago found itself in a precarious situation. Certain
international and local drivers, the principalones being international pressures from global
and regional organisationsand an intensified domestic crime rate, presented a perfect storm.
Trinidad and Tobago had to adapt or face diplomatic and economic death effectively
stagnating the country’sdevelopment.
JMLC
22,4
694
Journalof Money Laundering
Control
Vol.22 No. 4, 2019
pp. 694-720
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2019-0003
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
Internationally, Trinidad and Tobago had reached its tipping point as it found itself on the
brink of being “blacklisted”by the Financial Action Task Force (FATF), for its slow pace of
implementation of the FATF recommendations for combating money laundering and the
financing of terrorism (Guardian Newspaper, 2012). Locally, amidst a surge in crime and calls
for new and improved strategies to address criminal activity, the Government of Trinidad and
Tobago sought to introduce tools to radically change the manner in which money laundering
was addressed. At the heart of this revolution was the premise that if one were to destroy the
roots of the tree of crime and remove the nutrients from which this tree flourishes, the inevitable
withering of all its branches would occur and crime would therefore be drastically reduced.
Accordingly, 2009 and 2010 marked the introduction of an inter-connected suite of
legislation geared toward criminalisingmoney laundering and confiscating the proceeds of
crime[1]. It is noted that in 2009 and 2010, legislation was also enacted to criminalise the
financing of terrorism to meet the FATF recommendations; however, for the purposes of
this article, emphasis will be placed on money laundering, its predicate offences and the
confiscation of the proceeds of crime.
In October 2013, Trinidad and Tobago was removed from the FATF list of countries
with strategic AML/CFT deficiencies. One would have expected that this removal would
have brought to a close the end of a very dark chapter in our history. For all intents and
purposes it was thought that a difficult lesson would have been painfully learned by all,
mistakes identifiedand a vow taken to never repeat them again.
History, however, has a way of repeating itself if targeted and consistent action is not taken to
address past transgressions. As recent as June 2018, the most recent report of the FATF has once
again identified Trinidad and Tobago as a country with strategic AML/CFT deficiencies. We
have not been blacklisted, nor have we been grey listed by the FATF but the identification as a
country with strategic AML deficiencies signals a retrograde step at the most inopportune time.
Trinidad and Tobago’s AML regime is limited in its effectiveness (Caribbean Financial
Action Task Force, 2016) and this is of significant concern to the FATF. The Mutual
Evaluation Report of Trinidad and Tobago (Caribbean Financial Action Task Force, 2016)
suggests that there are severe issues of implementation which constrain the efficient and
effective deterrence of money laundering and confiscation of the proceeds of crime. While
the Report acknowledges that Trinidad and Tobago has robust legislation that allows for
law enforcement agencies to gatherfinancial intelligence and information and to investigate
money laundering and associatedpredicate offences, it nevertheless reports that:
The lack of ML arrests coupled with the risks associated with the jurisdiction along with the lack
of priority given to investigation suggests that the offence of ML is not properly investigated.
Further, the Report suggests that the Financial Intelligence Unit of Trinidad and Tobago
(FIUTT) has wide legislative powers under the law to receive, analyse and disseminate
financial information to the relevant law enforcement agencies. However, notwithstanding
these wide powers, implementation concerns were evident with particular reference to the
efficiency and the value added by the FIUTT to the process, given the large number of
Suspicious Activity Reports (SARs) awaiting analysis and the number of SARs that have
been simply filed for intelligencepurposes.
In considering the prosecution, determination of money laundering matters and
confiscation of the proceedsof crime, it was troubling to the assessors that “none of the cases
for which persons have been charged withmoney laundering have been adjudicated by the
Court”, and they noted that “the absence of convictionsfor the offence of money laundering
means that no sanctions have been applied by the Court”. The conclusion arrived at in the
Money
laundering
control
695
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