MAKING CRIME PAY_WHITHER THE BENEFITS?

“… The public would be hoping now that once proclaimed, this amended legislation will indeed be deployed in reeling in the increasing number of big fish that have been swimming free in the toxic waters of corruption, drugs and general criminal plunder…”

Trinidad Express: Editorial, August 20, 2014

“… Anti-money laundering and counter financing of terrorism (/) should not be judged by the laws, competent authorities and regulations countries have in place, but by the use of these laws and the effectiveness of supervision and compliance in reducing the vulnerability of the financial system to illicit finance…”

Commercial Secretary to the Treasury HM: Foreword

Anti-Money Laundering Counter Finance Terrorism Supervision Report 2012-13 (updated)

One year ago I wrote about the Miscellaneous Provisions (Financial Intelligence Unit of Trinidad and Tobago and Anti-Terrorism) Bill, 2012. This anniversary coincides with the passing of Miscellaneous Provisions (Proceeds of Crime Anti-Terrorism, Financial Intelligence Unit of Trinidad and Tobago) (No. 2) Bill, 2014. The Bill, according to the Finance Minister Larry Howai: “... seeks to make money laundering a stand-alone offence so that the prosecution does not have to wait for a conviction for a predicate offence..." It was unanimously passed in the Senate, as did the Bill of 2012. Notably, just as in 2012, these 2014 amendments have been made precipitously close to our next evaluation. The ability of this country to deal with money laundering and the financing of terrorism will be evaluated in January 2015. This timeline is fraught with anxieties given (1) the current arrangements between the Financial Intelligence Unit and the Financial Investigations Branch and (2) the complexities of Money Laundering and Terrorism Financing investigations.

The latest amendment to the Proceeds of Crime Act – Chapter 11:25 removes the conditionality of criminal conviction for money laundering activities (concealing, disguising, transferring, receiving, bringing into or removing from T&T money or other property…} With this in mind optimism is introduced in so far as having persons account for lifestyles and assets that are incongruent with their legitimate incomes. The Finance Minister attributed the poor detection (money laundering) to earlier legislative restrictions: that the prosecution needed to prove that the laundered funds were derived from a specific criminal offence and that there must be parallel charges laid for that offence in order for the money laundering charge to succeed.

But Lord Deighton, Commercial Secretary to the Treasury (HM) points further to the effectiveness of supervision and compliance. These two functions, inter alia fall under the remit of the Financial Intelligence Unit of Trinidad and Tobago. In its analysis of suspicious reports (October 1, 2012, to September 30, 2013), the FIU’s Analytic Division found that the majority of the reports came from the banking or financial institutions. During the reporting period of the analysis the FIU identified a number of significant ML/FT trends, typically:

• Intra-island money transfers – An increase in intra-island activity where individuals in close proximity to each other in Trinidad and Tobago are sending money to each other via MVTS (Money Value Transfer Services)
• Commingling of Accounts - There was a marked increase in the incidence of individuals and private companies commingling accounts and transferring funds overseas.
• Use of cash – Increase in the use of cash for large purchases.
• Layering – Funds moving frequently through Real Property purchases and sales.

Yet the Ministers laments 'low level charges' and 'minuscule amounts' of seized assets. Perhaps this is due to the distinction in the functions of the the Financial intelligence and The Financial investigations Branch. These two agencies reside under different Ministries, each with their share of bureaucratic processes, however, they are inextricably linked in meeting the objectives of combating money laundering and Terrorist Financing and satisfying the recommendations of the (Caribbean) Financial Action Task Force.The question is whether present functional arrangements between the FIU and the FIB add to the challenges of making a significant impact on organised crime in Trinidad and Tobago.

The FIU is the primary institution for the collection of financial intelligence and information and the analysis, dissemination, and exchange of such financial intelligence: this includes information among law enforcement authorities, financial institutions and . The FIB is an investigative unit under the Trinidad and Tobago Police Service. Financial investigation is one of many specialist investigative approaches employed by law enforcement when tackling organised crime. Such investigations typically operate within the legal framework of the necessary legislation such as the Proceeds of Crime Act (POCA), Chapter 11:25 as amended, which contain a number of asset recovery powers, including the use of restraint orders and post-conviction confiscation orders and cash seizure and civil forfeiture/recovery.

The Caribbean is vulnerable to transnational trafficking and trading of drugs and guns, which results in a thriving underground economy, this in turn has the potential to undermine the macro and micro economies. Clearly, research in the areas of money laundering and financial investigations needs to be robust and continuous. Particularly in Trinidad and Tobago, international funding and investments are drivers of the economy, as such, there is a dire need to protect the relevant fiscal infrastructure. Additionally, Trinidad and Tobago is party to various conventions regarding anti-money laundering and counter-terrorism initiatives. Therefore current legislative and law enforcement mechanisms be assessed to determine their effectiveness in meeting the objectives of bringing financial institutions and legitimate businesses to compliance with global anti-money laundering and counter-financing systems. Finally, in accepting the fact that crime will always be with us, the least we can do is to make crime pay.

http://www.trinidadexpress.com/commentaries/Getting-tough-on--money-laundering-272094961.html

http://www.ttparliament.org/publications.php?mid=28&id=705

http://www.trinidadexpress.com/news/Only-four-charged-with-laundering-under-existing-law-271938981.html

http://www.fiu.gov.tt/content/FIUTT%20Annual%20Report%202013.pdf

https://www.gov.uk/government/publications/anti-money-laundering-and-counter-terrorist-finance-supervision-reports