The unexplained wealth order: a boost for Trinidad and Tobago’s fight against money laundering?
| DOI | https://doi.org/10.1108/JMLC-09-2019-0077 |
| Pages | 509-513 |
| Published date | 09 March 2020 |
| Date | 09 March 2020 |
| Author | Marie Freckleton |
| Subject Matter | Financial crime,Financial compliance/regulation,Financial risk/company failure |
The unexplained wealth order:
a boost for Trinidad and Tobago’s
fight against money laundering?
Marie Freckleton
University of the West Indies, Mona, Jamaica
Abstract
Purpose –This paper aimsto explain the reasons for the introduction of unexplainedwealth orders (UWOs)
in Trinidadand Tobago and highlights potential obstacles to implementation.
Design/methodology/approach –The research is based on secondary sources. The Civil Asset
Recovery and management and UnexplainedWealth Act (CARAMAUWA) (2019) and relevant reports were
reviewed.
Findings –The CARAMAUWAprovides two potentially powerful toolsto confiscate the proceeds of crime.
However, the UWOs have greater potential. Effective implementation will require adequate human and
financialresources, as well as measures to reduce corruption.
Research limitations/implications –The CARAMAUWA became operational on 14 June 2019 so it
was not possibleto assess actual implementation.
Practical implications –UWO is a usefultool for controlling money laundering.
Social implications –Effectivecontrol of money laundering can reduce crime.
Originality/value –No other study has examinedthe reasons for the introduction of the UWO in Trinidad
and Tobago and the potentialchallenges to implementation.
Keywords Money laundering, Unexplained wealth order
Paper type Research paper
1. Introduction
Successful control of money laundering requires adequate anti-money laundering (AML)
regimes in all countries exposed to money laundering. Given the global integration of
financial markets, weak AML regimes in some countries pose risks to the rest of the
international financial system.Some countries are experiencing difficulties in implementing
effective AML regimes. A significant factor undermining the effectiveness of AML regimes
is the difficulty of prosecuting money launderingoffences. Successful prosecution of money
laundering offences requires proof that the laundered funds are the proceeds of crime.
However, as noted by Murray (2016), money laundering is usually organised in a manner,
which ensures that there are no direct links between the predicateoffence and the laundered
money. In addition, the investigation of money laundering offences is complicated by the
wide range of ways in which money is laundered. Jurisdictions with limited human and
financial resources to conduct difficult investigations are, therefore, likely to prioritise the
prosecution of predicateoffences rather than the prosecution of money laundering offences.
Some jurisdictions have enactedunexplained wealth orders (UWOs) to circumvent some
of the problems encountered in prosecuting moneylaundering offences. The UWO requires
owners of assets to prove that those assets were acquired legitimately. This reduces the
burden on the prosecution. There is also a greaterprobability of success as the prosecution
does not have to prove that the assets are the proceeds of crime.
Unexplained
wealth order
509
Journalof Money Laundering
Control
Vol.23 No. 2, 2020
pp. 509-513
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2019-0077
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