Why you should comply with your legal obligations
AML/CFT compliance is not an option!
When a Supervised entity fails to comply with their AML/CFT legal obligations, the FIUTT will take the necessary enforcement action.
There are business and regulatory risks to non-compliance:
- Business Risk – a financial institution or listed business is at risk of incurring severe business loss once it has been confirmed they have facilitated or are engaged in money laundering. It is likely the business reputation will be tarnished and consequently can suffer loss of business activity. Depending on the type of business, there is also the likelihood the entity can face financial losses due to imposition of hefty criminal penalties.
- Regulatory Risk – a financial institution or listed business that is found to be involved in or facilitating money laundering, terrorist financing or proliferation financing is liable to criminal penalties which can include monetary fines, loss of license or enhance monitoring measures by the Regulator.
Penalties for non-compliance
The Proceeds of Crime Act, the FIU Act, the Anti-Terrorism Act and their regulations outline the various AML/CFT offences and penalties. Some of the important offences which Supervised Entities should be aware are outlined in the FIUTT publication
Offences and Penalties under AML_CFT Laws of Trinidad and Tobago