anti-money laundering / combating the financing of terrorism compliance unit ministry of national...
DESCRIPTION
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 PresentationTRANSCRIPT
![Page 1: Anti-Money Laundering / Combating the Financing of Terrorism Compliance Unit Ministry of National Security](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/1.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/2.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/3.jpg)
• 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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/4.jpg)
• 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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/5.jpg)
The National AML/CFT Committee
![Page 6: Anti-Money Laundering / Combating the Financing of Terrorism Compliance Unit Ministry of National Security](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/6.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/7.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/8.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/9.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/10.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/11.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/12.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/13.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/14.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/15.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/16.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/17.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/18.jpg)
![Page 19: Anti-Money Laundering / Combating the Financing of Terrorism Compliance Unit Ministry of National Security](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/19.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/20.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/21.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/22.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/23.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/24.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/25.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/26.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/27.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/28.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/29.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/30.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/31.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/32.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/33.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/34.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/35.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/36.jpg)
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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/37.jpg)
• 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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/38.jpg)
• 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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/39.jpg)
•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](https://reader036.vdocuments.net/reader036/viewer/2022062521/5681697a550346895de17b3a/html5/thumbnails/40.jpg)
End of Presentation