Financial expert Prakash Ramlakhan has disagreed with Canadian money-laundering specialist Garry Clement that T&T is a “haven for money laundering.” His comments came as T&T continues to face the possibility of being placed on an international financial blacklist for not prosecuting those involved in money laundering and terrorist financing.
Clement, a director with the Royal Canadian Mounted Police, was quoted in an article published in the Canadian Montreal Gazette on May 30, which said Panama and T&T are known money-laundering havens, where one can stash millions of dollars and transfer funds to offshore accounts without being arrested.
The report was published after police in Panama arrested Arthur Porter, former head of the McGill University Health Centre, and his wife for money-laundering and conspiracy arising from $1.3 billion (Can) hospital construction contract. The couple were on their way to T&T when they were arrested, but did not appear to have any business links to T&T. Clement was speculating as to why criminals might choose to transfer funds to this country.
But Ramlakhan, who lectures on finance and banking at the University of the West Indies, said despite this, it was unfair for T&T to be labelled a money-laundering haven. “I don’t consider it a fair statement, because we have made considerable attempts to strengthen our borders with regard to financial transactions,” he said. “We have been instrumental in anti-money-laundering legislation through the Caribbean Finance Action Task Force and through the Central Bank.”
He said commercial banks also had a high level of self-regulation which made money laundering difficult. But he conceded: “People who want to funnel money will continue to find creative ways of doing so, and that is why we must embark on a public education and awareness drive to combat money laundering.” Ramlakhan said technological advancements and legislative changes would also assist.
Saying T&T is “significantly ahead in some of the Caribbean islands who have been blacklisted in the past,” Ramlakhan recommended that businesses such as supermarkets, food outlets, and retail outlets should be brought under the aegis of the Financial Intelligence Unit. “With the technology in place you have a new way of executing transactions,” he said.
“You also have a number of business entities that are not regulated by the anti-money-laundering regulations even though it is the responsibility of any business owner to conduct transactions that are legal and ethical.” Contacted yesterday, director of the Caribbean Finance Action Task Force Calvin Wilson said he preferred to allow local institutions to speak on money laundering, but anti-money-laundering recommendations were documented on the CFATF’s Web site.
On the Web site, CFATF says adequate resources are needed to fight money laundering.
CFATF also said: “In countries where experience in combating money laundering is limited, there needs to be competent authorities that specialise in money-laundering investigations and prosecutions and related forfeiture actions, advise financial institutions and regulatory authorities on anti-money laundering measures, and receive and evaluate suspicious transaction information from financial institutions and regulators and currency reports which are filed by individuals or institutions.”
Certified money-laundering specialist David West also agreed T&T was not a haven for money laundering, but said it could still face being blacklisted in 2014, when the Financial Action Task Force meets, if it does not aggressively prosecute offenders. Weat revealed in April that T&T could be put on the FATF’s list of “Non-Co-operative Countries or Territories” (NCCTs), which are perceived not to be co-operating on money laundering and terrorist financing, if no one is prosecuted for related offences.
Yesterday he said the Financial Intelligence Bureau and the FIU must be streamlined so that detection, investigation and prosecution were carried out. “We have to tighten up the operational side of the money laundering and counter-terrorism regime in T&T,” West said. “When they have a suspicious transaction report, it is analysed by the FIU and sent to the Financial Investigations Bureau. We need better collaboration between the two bodies to bring about a successful prosecution.”
He also agreed there was a need to review the types of businesses which fall under the supervision of the FIU. Opposition leader Dr Keith Rowley did not want to comment as yet. He said: “I am not familiar with the case. I am not the person who should comment on this. I want to review this and comment in a different place at a different time.”
Attorney General Anand Ramlogan and Finance Minister Larry Howai were in the Senate yesterday and did not respond to text messages. Director of the Financial Intelligence Unit Susan Francois was in office but her secretary told this reporter to send a list of questions via e-mail.
BANKERS RESPOND
In a release issued yesterday in response to questions from the T&T Guardian, the Bankers’ Association (BATT), which represents all commercial banks, condemned the disparaging statements reported in the Canadian media.
BATT said, “These statements are unfortunate and misguided. Member banks maintain robust banking systems and controls that meet international anti-money-laundering and combating terrorist financing standards (AML/CTF) as set by the Financial Action Task Force (FATF) and in some instances exceed domestic regulatory requirements.”
“The T&T AML/CTF regulatory framework comprises several pieces of legislation and regulatory guidelines, which comply for the most part with FATF standards and are aimed at preventing and detecting money laundering, terrorist financing and other crimes.” The association said the rise in the threat of money laundering was pervasive and imperilled both countries and banks worldwide.
“This has led the local banking sector to strengthen its vigilance to ensure that banks are not used as vehicles for money laundering. Member banks do not condone or knowingly become involved in money laundering and ensure that their systems and processes are sufficiently rigorous to detect, report and prevent money-laundering activity,” it said.
MORE INFO
Dirty money figures to date
According to a 2012 report from the FIU, a total of $638,844,310 in alleged “dirty money” transactions reportedly passed through the country's financial system in 2012.
The FIU also reported that from October 2011 to September 2012, 258 suspicious transfer reports and suspicious activity reports were flagged by banking institutions.