Jan.15, 2010

A PROPER financial system needs to be in place before the country can effectively protect itself from money launderers.

This was the advice from Central Bank Governor Ewart Williams at the sixth annual compliance conference on anti-money laundering and combating the financing of terrorism at the Hyatt Regency Trinidad Hotel in Port of Spain yesterday.

Williams said the recent financial crisis prompted the establishment of new international financial legislation that emphasises collaboration between countries, both large and small.

’The international community has become less tolerant of jurisdiction that is not adhering to the international standards and is now all the more ready to impose sanctions on those countries that don’t measure up.

’For countries like Trinidad and Tobago, the systemic risk for money laundering has increased over the past few years, firstly, our economy has become more open as barriers to trade and financial clauses have been eliminated. In addition to that, we have become an important regional financial centre and that necessarily brings with it the potential to attack both legal and illegal financial passages,’ he said.

While the potential sources of money to be laundered have expanded greatly in recent years, Williams said that illegal drugs were still prolific in societies around the world.

’The fact that our region and our country are now recognised as important hubs on the major north south route for illegal drugs further increases our vulnerability. Developed countries have been diligent in updating their legislative and regulatory frameworks to deal with money laundering, particularly after 9/11, but the developing countries, Trinidad and Tobago included, have been slow in enhancing their framework,’ he said.

To the country’s credit, Williams said Trinidad and Tobago has embarked on a comprehensive programme to upgrade its financial infrastructure to facilitate anti-money laundering efforts.