US slams CARICOM as money launderers (We on d list duh)

[The_Honourable]

oh my...

US slams CARICOM as money launderers

In one fell swoop the United States government has condemned 14 of the 15 CARICOM states as major money laundering countries, and Barbados government minister, Donville Inniss, is calling for joint regional reaction.

In its March 2017 International Narcotics Control Strategy Report of the US Department of State omitted only Montserrat in its broad brush across the region that hit every CARICOM member along with other Caribbean states, and Inniss noted that such charges carry severe consequences for financial operations of these countries.

“This is an issue that affects the survival of each economy in the region,” he said recently in a comment on the issue.

“Our health-care systems in the region are at risk of not being adequately financed if we do not get it right in international finance and business. Our agricultural sector would be under immense pressure if we don’t get it right in these areas,” he told the Barbados Advocate newspaper.

The State Department stated that as of 2016 major money laundering countries included: Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago. Though a full CARICOM member, the nation omitted from that list, Montserrat, remains a British Overseas Territory.

Among the consequences of such labeling for the 14 states, is further unwillingness of international banks to act as corresponding financial houses for worldwide transactions coming out of and entering these CARICOM countries. The inability to conduct, or limiting of, such transactions will affect not only macro economics considerations like international trade, but could also hurt CARICOM citizens on the individual level by hindering remittances, on which many in the region depend.

Prior to the State Department’s broad brush labeling of CARICOM countries, many international financial houses had been dropping correspondent banking services to regional countries in what is termed ‘de-risking’ because of fears of huge financial penalties from US authorities if they are found doing business with suspected money laundering entities in the Caribbean. The US State Department’s announcement has the potential of heightening the fear of international banks that they are likely to process financial transactions for the region that could involve laundered money.

Inniss, a Barbados Commerce and Industry minister, is concerned that in reacting to this latest accusation, and others, against the Caribbean grouping, these small countries are going forward as individuals, which makes it easier for them to be picked off.

“We are still 15 nations going into the international fora, grappling with an understanding of the issues and then perhaps 15 divergent positions on the matter, and I have been saying publicly and privately in regional meetings that we really need to come together.”

For this absence of a united approach, he blames officials of the Guyana based CARICOM Secretariat and heads of government of the respective states.

“It is like pulling teeth to get the folks in Georgetown, Guyana to understand the issues and I would go as far as to suggest that I do not think the leaders in the region appreciate the gravity of the situation,” he said.

Inniss’ call for coordinated CARICOM action matched that made by Eastern Caribbean Central Bank Governor, Timothy Antoine, during a Barbados visit earlier this month.

Pointing out that the world views the Caribbean as a brand or single entity, he said, “it means that notwithstanding our heroic domestic efforts, larger countries, correspondent banks, regulators and even international institutions regard us as a homogeneous region. Consequently, the weaknesses of one often impact the reputation of all.”

He added, “these international operators do not know and frankly spoken, often do not care, about our country-specific circumstances including our detailed implementation plans for certain reforms and standards”.

He said that international banks “deem it too costly and inefficient” to deal with the small states individually.

Source: http://www.caribbeanlifenews.com/storie ... rs-cl.html

[The_Honourable]

Pulled straight from the report...

Trinidad and Tobago

OVERVIEW

Trinidad and Tobago’s close proximity to drug producing countries, relatively stable economy, and developed financial systems make it a target for criminals looking to launder money. Proceeds from drug trafficking, illegal arms sales, fraud, tax evasion, and public corruption are the most common sources of laundered funds and are derived from both domestic and international criminal activity. Narcotics trafficking organizations and organized crime entities, operating locally and internationally, control the majority of illicit proceeds moving through the country.

There have not been any money laundering convictions to date, although the Police Service Financial Investigations Branch continues to bring cash seizure and forfeiture cases to the courts. Trinidad and Tobago institutions encompassed in the AML regime continue to be challenged due to capacity and resource constraints. Sustained capacity building, ensuring adequate legislation, regulating the gaming industry, and increasing cooperation among law enforcement entities, the FIU, and the judiciary would greatly improve AML investigations and the rate of convictions.

VULNERABILITIES AND EXPECTED TYPOLOGIES

Trinidad and Tobago’s AML regime is unable to quantify the extent to which fraud and public corruption contribute to money laundering. Fraud and waste in government procurement have been identified as problems, but rarely result in convictions. The failure to prosecute financial crimes successfully has a corrosive impact on the integrity of public finances and may encourage others to engage in financial crimes.

Money laundering also occurs outside the traditional financial system. While public casinos and online gaming are illegal in Trinidad and Tobago, gamblers take advantage of “private members’ clubs,” which operate as casinos and are able to move large amounts of cash due to Trinidad and Tobago’s lack of adequate AML supervision of this sector. Reports also suggest that certain local religious organizations are involved in money laundering. STRs reviewed by the FIU and Customs and Excise Division officials indicate that TBML occurs.

There are 17 FTZs in Trinidad and Tobago, where manufactured products are exported. Companies must present proof of legitimacy and are subject to background checks prior to being allowed to operate in the FTZs, and while operating are required to submit tax returns quarterly and audited financial statements yearly. There is no evidence the FTZs are involved in money laundering schemes.

Trinidad and Tobago does not have a significant offshore banking sector. The volume of money laundering in the offshore banking sector is unknown. Currency transactions below the STR threshold are common.

KEY AML LAWS AND REGULATIONS

Trinidad and Tobago has fairly comprehensive KYC and STR regulations.

Trinidad and Tobago is a member of the CFATF, a FATF-style regional body. Its most recent mutual evaluation can be found at: http://www.fatf-gafi.org/media/fatf/doc ... tobago.pdf

AML DEFICIENCIES

The Attorney General’s office is committed to addressing legislative deficiencies and has prioritized AML investigations and prosecutions. Trinidad and Tobago needs to consistently comply with international standards regarding its legal and regulatory frameworks and to demonstrate commitment to enforce AML laws. Trinidad and Tobago should improve its capacity to investigate and prosecute money laundering cases successfully in order to increase its conviction rate.

ENFORCEMENT/IMPLEMENTATION ISSUES AND COMMENTS

Trinidad and Tobago currently has 13 financial prosecutions and no convictions to date. AML stakeholders continue to face many challenges, and Trinidad and Tobago has taken steps to address deficiencies. In 2016, Trinidad and Tobago appointed a Seized Assets Committee, to establish regulations and management of monies seized under the Proceeds of Crime Act.

Trinidad and Tobago continues to address additional AML legislative deficiencies. The country is in its third and final phase of its national risk assessment (NRA). The NRA will identify risks and vulnerabilities to the AML regime and guide Trinidad and Tobago in applying mitigating measures.

Source: https://www.state.gov/documents/organization/268024.pdf Page 176

AML - Anti-Money Laundering
CFATF - Caribbean Financial Action Task Force
FIU - Financial Intelligence Unit
FTZ - Free Trade Zone
KYC - Know Your Customer
STR - Suspicious Transaction Report
TBML - Trade-Based Money Laundering

[drchaos]

We should slam them back for being one of the biggest drug consumers in the world. If they cut their nasty habit there would be no drug money to launder.

[bluefete]

We should slam them back for being one of the biggest drug consumers in the world. If they cut their nasty habit there would be no drug money to launder.

[De Dragon]

Monsterrat only get 'way cuz they have a population of about 5000 people

[EFFECTIC DESIGNS]

We should slam them back for being one of the biggest drug consumers in the world. If they cut their nasty habit there would be no drug money to launder.

Liberals have stated that they want all forms of drugs legalized, the list not only includes Ganja but also Heroine and Cocaine.

Liberals make up most of the voting population in the US, so goodluck on getting them so slam themselves for their drug consumers.

[drchaos]

We should slam them back for being one of the biggest drug consumers in the world. If they cut their nasty habit there would be no drug money to launder.

Liberals have stated that they want all forms of drugs legalized, the list not only includes Ganja but also Heroine and Cocaine.

Liberals make up most of the voting population in the US, so goodluck on getting them so slam themselves for their drug consumers.

I also agree with legalization, would cut out the criminal element.

[src1983]

We should slam them back for being one of the biggest drug consumers in the world. If they cut their nasty habit there would be no drug money to launder.

Laundering does not only include drugs, but Tax evasion as well

[src1983]

What ever happened to the contractor they raided the other day?

[toyolink]

I remember the days when 'offshore banking' was considered an innovative approach in the money management model of many major corps..
Isle-Of-Man, Bermuda, Zurich etc. became famous.

[desifemlove]

I don't see the issue here. Everybody knows the Caribbean is a major gateway for this sheit.

[zoom rader]

I called for the scraping of Caricom long ago but the PNM ppl insist this is good ting

[neilsingh100]

Trinidad added to list of countries with Strategic AML/CFT deficiencies
https://www.fincen.gov/resources/advisories/fincen-advisory-fin-2018-a001

This is not good since US financial institutions may opt to end their relationship with local banks.

This could be a potential be financial disaster in the making since without access to the US financial system we could end up like Venezuela.

[EFFECTIC DESIGNS]

Imbutt has a plan, we red and ready.

We go jump and wine and wave and all our problems will be fixed

[abducted]

[paid_influencer]

Added to list: Sri Lanka , Trinidad and Tobago , Tunisia ,
Removed from list: Uganda

[hydroep]

Buh...is Kamla fault...

[VexXx Dogg]

What is the likely impact of this?

[shake d livin wake d dead]

Wine and fling it up

[Redman]

What is the likely impact of this?

Well it says that institutions dealing with accounts here should ensure they ( us institutions)following REASONABLE guidelines.....but at the same time not use this action as a cause to de risk....in a wholesale manner

They also acknowledged that GORTT has made commitments to get this stuff done.


Review of Guidance Regarding Jurisdictions Having Strategic AML/CFT deficiencies

U.S. financial institutions also should consider the risks associated with the AML/CFT deficiencies of the countries identified under this section (Bosnia and Herzegovina , Ethiopia , Iraq , Sri Lanka , Syria , Trinidad and Tobago, Tunisia , Vanuatu , and Yemen ).[16] With respect to these jurisdictions, U.S. financial institutions are reminded of their obligations to comply with the general due diligence obligations under 31 CFR § 1010.610(a) in addition to their general obligations under 31 U.S.C. § 5318(h) and its implementing regulations.[17] As required under 31 CFR § 1010.610(a), covered financial institutions should ensure that their due diligence programs, which address correspondent accounts maintained for foreign financial institutions, include appropriate, specific, risk-based, and, where necessary, enhanced policies, procedures, and controls that are reasonably designed to detect and report known or suspected money laundering activity conducted through or involving any correspondent account established, maintained, administered, or managed in the United States. Such reasonable steps should not, however, put into question a financial institution’s ability to maintain or otherwise continue appropriate relationships with customers or other financial institutions, and should not be used as the basis to engage in wholesale or indiscriminate de-risking of any class of customers or financial institutions. FinCEN also reminds financial institutions of previous interagency guidance on providing services to foreign embassies, consulates, and missions.[18]

[zoom rader]

We should all thank the 1% for the mess we are in. Local citizens have jack chit to do about this

[sMASH]

What is the likely impact of this?

Well it says that institutions dealing with accounts here should ensure they ( us institutions)following REASONABLE guidelines.....but at the same time not use this action as a cause to de risk....in a wholesale manner

They also acknowledged that GORTT has made commitments to get this stuff done.


Review of Guidance Regarding Jurisdictions Having Strategic AML/CFT deficiencies

U.S. financial institutions also should consider the risks associated with the AML/CFT deficiencies of the countries identified under this section (Bosnia and Herzegovina , Ethiopia , Iraq , Sri Lanka , Syria , Trinidad and Tobago, Tunisia , Vanuatu , and Yemen ).[16] With respect to these jurisdictions, U.S. financial institutions are reminded of their obligations to comply with the general due diligence obligations under 31 CFR § 1010.610(a) in addition to their general obligations under 31 U.S.C. § 5318(h) and its implementing regulations.[17] As required under 31 CFR § 1010.610(a), covered financial institutions should ensure that their due diligence programs, which address correspondent accounts maintained for foreign financial institutions, include appropriate, specific, risk-based, and, where necessary, enhanced policies, procedures, and controls that are reasonably designed to detect and report known or suspected money laundering activity conducted through or involving any correspondent account established, maintained, administered, or managed in the United States. Such reasonable steps should not, however, put into question a financial institution’s ability to maintain or otherwise continue appropriate relationships with customers or other financial institutions, and should not be used as the basis to engage in wholesale or indiscriminate de-risking of any class of customers or financial institutions. FinCEN also reminds financial institutions of previous interagency guidance on providing services to foreign embassies, consulates, and missions.[18]

reading it, i still kinda lost. what i gather is that, the US organizations must carry out some sort of care to ensure they do the transactions in the right way according to US tax/business laws.... am i right?

[Redman]

That care is already in place as a requirement...since a US entity cannot say " I didn't know....oops"
So you are correct...but it's in place and will continue


Based on my experience....this would result in little operational change....the US institution may just pay more attention to biz with TnT entities.

The U.S. will not shut down relationships unless there is absolutely hard evidence....also they acknowledge high level commitment from GORTT.
The U.S. is fully aware of where this process is...
So we get a warning notice...but they working with us.

[paid_influencer]

is more a watch list than a blacklist

why to OP call it a blacklist, we have to ask kamla.

[mero]

is more a watch list than a blacklist

why to OP call it a blacklist, we have to ask kamla.

I wondering the same thing. I browse through the article and eh seen nun bout blacklist. Sensationalism again

[mitsutt]

is more a watch list than a blacklist

why to OP call it a blacklist, we have to ask kamla.

I wondering the same thing. I browse through the article and eh seen nun bout blacklist. Sensationalism again

OP likes to do this.

[xtech]

Local owned banks might have more problems with keeping foreign transactions above board.

[Redman]

Uh no difference I think
Ask HSBC

[neilsingh100]

Technically it is not a blacklist but will definitely cause US financial institutions to rethink relationships with entities in this country. A friend of mine that is a VP in JP Morgan pointed this out to me since they are reviewing if to terminate relationships with Trinidad entities so I assume other big US banks are doing the same. We will see what will happens but I don't think it coincidence the 2017 FIU report says we had 20 billion in suspicious transactions and hearing about ISIS cells in this country.

[Rovin]

Buh...is Kamla fault...

ent cos she teef out all d mornee from d treasury , she eh leave back ah red cent self .....