By SEAN DOUGLAS Tuesday, October 6 2009

MINISTER of National Security Martin Joseph yesterday said the Proceeds of Crime (Amendment) Bill 2009 widens the net to combat money-laundering, compared to the patent Act of 2000, as he piloted the Bill in the Senate yesterday.

“The Proceeds of Crime (Amendment) Bill widens the definition of a specified offence and it also widens the category of business which will be regulated by the provisions of the Act”.

He said since Trinidad and Tobago had signed the 1998 Vienna Convention, the international community had created the Financial Action Task Force (FATF) which now required this country to upgrade its Proceeds of Crime Act (POCA) 2000.

He said the Act would now be applied to all indictable offences which may generate proceeds of crime, and would be extended extra-territorially, in addition to retaining the old Act’s existing list of specified offences.

“The second instance in which the Bill differs from its predecessor is that it widens the range of businesses that are under an obligation to keep records and to disclose suspicious transactions to the FIU (Financial Intelligence Unit)’

“FATF deems it essential that customer due diligence and record-keeping requirements apply to designated non-financial businesses and professions as well as financial institutions”. He added that FATF has said this class include casinos, real estate businesses, dealers in precious metals, attorneys, accountants and trust and company service providers.

Joseph noted that the Bill actually crates the offence of money-laundering, which he lamented is used by drug-dealers, terrorists and arms dealers.

“Recognising the damning effects of money-laundering, the Government through this Bill is sending a strong signal that money laundering is an offence of a serious nature and is to receive the highest form of censure”.

He said that while the Central Bank’s guidelines against money laundering and terrorist- financing are largely adhered to, this is only due to moral suasion. “However our country was still rated as non-compliant as these guidelines were not made legally enforceable”.

Joseph warned that money-laundering could hurt this country’s financial sector and could incur dire financial sanctions. “Money laundering is a grim reality that destabilises financial institutions, private sector enterprises and a country’s economic development”.