Trinidad and Tobago

UN Sanctions: As a UN member state, Trinidad and Tobago is obligated to implement sanctions imposed by the UN Security Council. These typically involve asset freezes, travel bans, and arms embargoes against individuals, entities, and countries.

Anti-Terrorism Act, Chap. 12:07: This act provides for measures against terrorism and includes provisions for implementing UN Security Council Resolutions related to terrorism and its financing, including the freezing of assets of designated terrorist entities and individuals.

Proceeds of Crime Act, Chap. 11:27: This act deals with money laundering offences, confiscation of criminal proceeds, and related matters, which can indirectly support sanctions enforcement by targeting illicit financial flows.

Financial Intelligence Unit of Trinidad and Tobago Act, Chap. 72:01: Establishes the FIU, which plays a crucial role in receiving, analyzing, and disseminating suspicious transaction reports (STRs) and suspicious activity reports (SARs) related to ML, TF, and other financial crimes, including sanctions violations.

United Nations Security Council Resolutions (Implementation) Act, 2011 (No. 20 of 2011): This Act provides a general framework for giving effect to UN Security Council Resolutions in Trinidad and Tobago.

Financial Obligations Regulations (Designated Countries and Entities) Order: Issued under the Anti-Terrorism Act, this order lists individuals and entities designated as terrorists, whose assets must be frozen.

OFAC/EU Sanctions Compliance Requirements for VASPs:

International Correspondent Banking: VASPs often rely on traditional financial institutions (banks) for fiat on-ramps/off-ramps, payroll, etc. These banks are almost universally subject to OFAC and EU sanctions due to their international operations, especially their dealings in USD or EUR. Non-compliance by a VASP could lead to banks de-risking or terminating services.

Global Reach of Virtual Assets: Virtual asset transactions are inherently global. A VASP in T&T could inadvertently facilitate transactions with individuals or entities sanctioned by the US or EU, leading to secondary sanctions risks or enforcement actions by these foreign authorities if there's a nexus to their jurisdiction (e.g., a US person involved, US-domiciled technology, or USD stablecoins).

FATF Standards: The FATF recommends that countries ensure VASPs are subject to AML/CFT obligations, including sanctions screening. Non-compliance with OFAC/EU sanctions, even by entities outside those jurisdictions, is often viewed negatively by international regulators and financial institutions.

Implement Robust Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures: This includes identifying and verifying the identity of customers and beneficial owners.

Screen against Sanctions Lists: Regularly screen customers, counterparties, and transactions against:

UN Consolidated Sanctions List: This is legally binding for T&T.

OFAC Specially Designated Nationals (SDN) List and other OFAC lists: Essential due to the dominance of the USD in global finance and the extraterritorial reach of OFAC.

EU Sanctions Lists: Important for similar reasons if dealing with EU counterparties or currencies.

Domestic Lists: Any individuals or entities designated under T&T's Anti-Terrorism Act or similar legislation.

Ongoing Monitoring: Continuously monitor transactions for red flags indicative of sanctions evasion or illicit activity.

Politically Exposed Persons (PEPs) Screening: Identify and apply enhanced due diligence to PEPs, their family members, and close associates, as PEPs often present a higher risk for corruption and sanctions evasion.

Countries subject to comprehensive UN, OFAC, or EU sanctions: E.g., Iran, North Korea, Syria, Cuba (OFAC), and specific regions or entities related to ongoing conflicts (e.g., Russia/Ukraine related sanctions).

High-Risk Jurisdictions: Jurisdictions identified by FATF as having strategic AML/CFT deficiencies (e.g., those on the FATF "grey list" or "black list") warrant enhanced due diligence and potentially restrictions.

Country-Specific Sanctions Lists for Crypto:

Imprisonment: Individuals found guilty of offences under the Anti-Terrorism Act or Proceeds of Crime Act can face significant prison sentences. For example, terrorism financing offences carry terms of imprisonment of up to 25 years.

Fines: Substantial monetary penalties can be imposed on both individuals and corporate entities.

Asset Forfeiture: Proceeds of crime, including virtual assets, can be confiscated.

Reputational Damage: Non-compliance can severely damage a VASP's reputation, leading to loss of customers, banking relationships, and market access.

International Implications: Failure to comply with international sanctions (even if not directly T&T law) can lead to being cut off from global financial systems, enforcement actions by foreign regulators (e.g., OFAC fines for a US nexus), and being deemed a high-risk entity by international banks and counterparties.

Accessible via: Laws of Trinidad and Tobago (Attorney General's Chambers): https://rgd.legalaffairs.gov.tt/laws2/acts/2011/2011-20.pdf (This link points to the 2011 Amendment which is part of the larger Act). The full, consolidated Act is often available through the Trinidad and Tobago Parliament or Legal Affairs website.

Proceeds of Crime Act, Chap. 11:27:

Accessible via: FIU T&T Website (Legal Framework section): https://www.fiu.gov.tt/legal-framework/

Central Bank of Trinidad and Tobago (CBTT) - Position Paper on Digital Currency (2020) and Policy Document on Virtual Assets (2024, consultation phase): These documents outline the CBTT's stance and future regulatory intentions regarding virtual assets.

Accessible via: CBTT Publications (search for "virtual assets" or "digital currency"): https://www.central-bank.org.tt/publications (The 2024 Policy Document on Virtual Assets was published for public consultation in May 2024 and should be available here).

UN Security Council Sanctions Committees:

Accessible via: UN Sanctions Committees: https://www.un.org/securitycouncil/sanctions/information

OFAC Sanctions Programs and SDN List:

Accessible via: U.S. Department of the Treasury: https://ofac.treasury.gov/sanctions-programs-and-country-information

Accessible via: EU Sanctions Map: https://www.sanctionsmap.eu/#/main

No Comprehensive Dedicated Legislation (Yet): Trinidad and Tobago does not currently have a dedicated, standalone legislative framework specifically governing virtual assets or cryptocurrencies.

Application of Existing Laws: Existing laws relating to anti-money laundering (AML), combating the financing of terrorism (CFT), and securities are being applied to virtual asset activities where applicable.

Strong Public Advisories: Regulatory bodies have primarily adopted a cautionary approach, issuing numerous public warnings about the risks associated with virtual assets (e.g., volatility, scams, cybercrime, lack of recourse, AML/CFT risks).

Developing Framework: The government and regulatory bodies are actively working towards developing a more robust and specific regulatory framework, particularly for Virtual Asset Service Providers (VASPs), driven by FATF recommendations.

Central Bank of Trinidad and Tobago (CBTT)

Role: The primary regulator for the banking and financial system. It has consistently warned the public that cryptocurrencies are not legal tender in Trinidad and Tobago and are not regulated or issued by the CBTT. They highlight risks related to consumer protection, financial stability, and illicit finance.

Trinidad and Tobago Securities and Exchange Commission (TTSEC)

Role: Regulates the capital markets and securities industry. The TTSEC has indicated that certain virtual assets, depending on their characteristics, may fall under the definition of "securities" and thus be subject to the Securities Act, 2012. They also issue warnings about the speculative nature and risks of initial coin offerings (ICOs) and other crypto investments.

Role: The national agency responsible for receiving, analyzing, and disseminating financial information to combat money laundering and terrorist financing. The FIUTT plays a critical role in developing the framework for Virtual Asset Service Providers (VASPs) to ensure they comply with AML/CFT obligations, consistent with FATF recommendations.

Date: 2012 (with subsequent amendments)

Application: Provides the TTSEC with the authority to regulate capital market activities. If a virtual asset is deemed a "security" under this Act (e.g., due to its investment contract nature), then its issuance, trading, and marketing would fall under the TTSEC's purview.

Reference: Available on the Ministry of Legal Affairs website, e.g., via the Laws of Trinidad and Tobago online portal.

Date: (Original Act and subsequent amendments)

Application: Establishes the FIUTT and outlines its powers and functions concerning AML/CFT. This Act forms the basis for requiring reporting entities, which will eventually include VASPs, to report suspicious transactions.

Proceeds of Crime Act, Chap. 11:27

Application: Criminalizes money laundering and related offenses. Any use of virtual assets for illicit financial activities would fall under this Act.

Application: Criminalizes terrorist financing. Any use of virtual assets to fund terrorism would be covered by this Act.

Proposed/Upcoming Legislation for Virtual Asset Service Providers (VASPs)

While not yet enacted, the government, through the FIUTT, has been working on legislation to regulate VASPs. This is in response to FATF Recommendation 15, which requires countries to regulate VASPs for AML/CFT purposes.

Current Status: Discussions and drafting are ongoing. It is expected to mandate registration, licensing, and AML/CFT compliance for entities providing services like crypto-to-fiat exchange, crypto-to-crypto exchange, transfer of virtual assets, safekeeping, and administration of virtual assets.

There is no explicit law prohibiting individuals from buying, selling, or holding cryptocurrencies.

However, individuals engage in these activities at their own risk, with no regulatory protections or recourse from Trinidad and Tobago's financial regulators.

Regulators strongly advise caution due to volatility, scams, and the unregulated nature of most platforms.

For Crypto Exchanges and Service Providers:

Unlicensed Operations: Currently, dedicated crypto exchanges operating solely with virtual assets do not have a specific licensing regime in Trinidad and Tobago. This means they are operating in a largely unregulated space, though they would still be subject to general laws (e.g., business registration, tax laws).

AML/CFT Obligations (Forthcoming): Once the VASP legislation is enacted, all entities offering virtual asset services (including exchanges) will be required to register/be licensed and comply with strict AML/CFT obligations under the supervision of the FIUTT.

"Securities" Classification: If an exchange deals with virtual assets that are deemed "securities" by the TTSEC, then that exchange would likely be required to register and comply with the Securities Act, 2012.

Banking Sector Stance: Local banks typically adopt a very cautious approach to cryptocurrency-related transactions, often refusing to process payments to/from crypto exchanges due to perceived AML/CFT risks and the absence of clear regulatory guidelines. This makes it difficult for individuals and businesses to interact with the traditional financial system when dealing with crypto.

No person may carry on virtual asset activities as a business without TTSEC authorization (Bill clause 4(1)); violations carry fines up to $5 million.

TTSEC will not grant authorizations for wallet services or related activities before December 31, 2027 (Bill clause 4(3)).

Pre-2025, authorities issued warnings on risks and confirmed no supervision, while developing tools like a Regulatory Innovation Hub and Sandbox.

Financial Intelligence Unit (FIU): Manages AML/CFT risks, ensuring due diligence and reporting for crypto-related activities.

Virtual Asset Business Act, 2022 (VABA, 2022): This is the foundational law for virtual assets and VASPs, defining what constitutes a "virtual asset" and "virtual asset business" and establishing the regulatory framework. It mandates licensing and compliance with AML/CFT obligations for VASPs.

Anti-Money Laundering and Countering the Financing of Terrorism Act, Chap 11:13: This is the overarching AML/CFT legislation that applies to all financial institutions, including VASPs under the VABA. It sets out the general requirements for AML/CFT compliance, including CDD, STRs, and record-keeping.

Proceeds of Crime Act, Chap 11:27: This Act criminalizes money laundering and the financing of terrorism, providing the legal basis for prosecuting such offenses and seizing assets.

Financial Intelligence Unit Act, Chap 72:01: This Act establishes the Financial Intelligence Unit (FIU) as the central national agency for receiving, analyzing, and disseminating suspicious transaction reports and other financial intelligence.

Identification and Verification of Customers:

For Individuals: Obtain and verify the customer's full legal name, date of birth, residential address, nationality, and a unique identification number (e.g., passport number, national ID card number). Verification must be done using reliable, independent source documents, data or information.

For Legal Persons/Arrangements (e.g., companies, trusts): Obtain and verify the legal name, principal place of business, registration number, articles of incorporation, bylaws, and other relevant constitutional documents.

Beneficial Ownership: VASPs must identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer, including for legal persons and arrangements. This involves understanding the ownership and control structure of the customer.

Purpose and Intended Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or transaction (e.g., why is the customer using VASP services, what types of virtual assets will be involved, expected transaction volumes).

Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes keeping customer information and beneficial ownership up-to-date.

Politically Exposed Persons (PEPs): Implement enhanced scrutiny for customers who are PEPs (domestic or foreign) or their family members or close associates. This includes obtaining senior management approval for establishing business relationships with PEPs and taking reasonable measures to establish the source of wealth and source of funds.

Enhanced Due Diligence (EDD): Apply EDD in situations identified as high-risk, such as:

Complex, unusually large transactions, and all unusual patterns of transactions that have no apparent economic or lawful purpose.

Customers residing in or transactions involving high-risk jurisdictions identified by the FATF or other relevant bodies.

Transactions involving anonymity-enhancing virtual assets.

Trigger: Any VASP that knows, suspects, or has reasonable grounds to suspect that a transaction (attempted or completed), virtual asset, or funds are linked to money laundering, terrorist financing, or other criminal activity, must file an STR.

Reporting Body: Financial Intelligence Unit (FIU) of Trinidad and Tobago.

Timeline: Reports must be submitted promptly, typically within a few working days of forming the suspicion, and in accordance with FIU guidelines.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that an STR has been or will be filed, or that an investigation is being conducted.

Customer Records: All records obtained during CDD, including identification documents, verification data, beneficial ownership information, and the assessment of the purpose and nature of the business relationship.

Transaction Records: Detailed records of all virtual asset transactions, including the amount, type of virtual asset, date, time, originating and beneficiary addresses (or equivalent identifiers), and any other relevant transaction data. These records must be sufficient to reconstruct individual transactions.

Analysis Records: Records of any analysis undertaken concerning complex, unusual, or large transactions, and the findings of such analysis.

STRs: Copies of all suspicious transaction reports filed, along with supporting documentation.

Internal Policies and Procedures: Records of internal AML/CFT policies, procedures, and training materials.

Retention Period: Records must generally be kept for a minimum of five (5) years after the business relationship has ended or after the date of the transaction, and must be readily accessible by the supervisory authority or the FIU upon request.

Licensing and registration of VASPs.

Issuing regulations, guidelines, and directives related to VASP operations, including AML/CFT.

Conducting onsite and offsite supervision and examinations of VASPs to ensure compliance with the VABA and other relevant AML/CFT legislation.

Imposing administrative penalties for non-compliance.

Central Bank of Trinidad and Tobago (CBTT): https://www.central-bank.org.tt/

Financial Intelligence Unit (FIU) of Trinidad and Tobago: https://www.fiutt.gov.tt/ (The FIU is responsible for receiving and analyzing STRs and providing AML/CFT guidance.)

Public Advisories and Warnings: Educating the public about the risks associated with investing in or using cryptocurrencies.

AML/CFT Guidance: Issuing directives to financial institutions regarding their obligations to identify and report suspicious transactions involving virtual assets.

Statements on Regulatory Stance: Clarifying that cryptocurrencies are not legal tender and are generally unregulated under existing financial services laws, which limits the scope for traditional "enforcement actions" against entities operating solely in this space unless they infringe on other laws (e.g., fraud, money laundering, unregistered securities offerings).

Regulator Name: Central Bank of Trinidad and Tobago (CBTT)

Entity Targeted: General Public, Financial Institutions. Violation Type: N/A (General warning about risks and unregulated status). Penalty Amount: N/A.

Date: Multiple advisories issued, notably updated in 2021 and 2022.

Outcome: Heightened public awareness of risks; reiterated position that cryptocurrencies are not legal tender and are not regulated by the CBTT. Financial institutions advised on risk management.

Key Points: The CBTT has consistently warned against the use of cryptocurrencies due to high volatility, potential for fraud, money laundering, lack of consumer protection, and the absence of regulatory oversight. They maintain that crypto assets are not legal tender in Trinidad and Tobago.

Source URL Example (from within the last 3 years):

CBTT Statement on Digital Currencies (August 2, 2021): This statement reiterates previous warnings and clarifies the CBTT's position.

CBTT Financial Stability Report 2022 (May 2023 - relevant context): While not solely about crypto, such reports often include sections discussing digital assets and associated risks within the financial system.

Regulator Name: Financial Intelligence Unit of Trinidad and Tobago (FIUTT)

Entity Targeted: Financial Institutions, Designated Non-Financial Businesses and Professions (DNFBPs), Public. Violation Type: N/A (Guidance on AML/CFT risks).

Date: Ongoing, with updated guidance.

Outcome: Enhanced awareness among reporting entities about their obligations concerning virtual assets under AML/CFT laws.

Key Points: The FIUTT focuses on the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) aspects of virtual assets. They provide guidance to reporting entities (like banks) on identifying and reporting suspicious transactions involving cryptocurrencies, in line with FATF recommendations. Their publications highlight the risks of using virtual assets for illicit purposes.

FIUTT Annual Reports: These reports often contain sections detailing their work on emerging risks, including virtual assets and their associated AML/CFT challenges.

FIUTT Annual Report 2021-2022 (Published 2023):

https://www.fiu.gov.tt/wp-content/uploads/FIU-Annual-Report-2021-2022.pdf (See sections on emerging threats, virtual assets, or compliance guidelines).

FIUTT's Sectoral Risk Assessments/Guidance Documents: While not always specific to a single date, these often get updated or reiterated.

https://www.fiu.gov.tt/publications/ (Regularly check this section for relevant guidance notes or advisories regarding new technologies).

Regulator Name: Trinidad and Tobago Securities and Exchange Commission (TTSEC)

Entity Targeted: General Public, Potential Investors. Violation Type: N/A (Warning against unregistered securities offerings and investment schemes).

Date: Multiple advisories, notably in 2021 and 2022.

Outcome: Public warned about fraudulent crypto-related investment schemes and the risks of investing in unregistered securities offerings that may involve virtual assets.

Key Points: The TTSEC's concern primarily revolves around crypto assets that might qualify as "securities" under existing legislation (e.g., initial coin offerings (ICOs) or other investment schemes promising returns). They have warned investors about schemes promising high returns with little risk, highlighting the need to verify registration of entities and products.

TTSEC Public Advisory on Cryptocurrencies (September 2, 2021): This advisory alerts the public to the risks associated with investments in cryptocurrencies and other digital assets.

TTSEC Investor Alerts: The TTSEC regularly issues investor alerts, some of which may pertain to unregistered entities or fraudulent schemes that could involve cryptocurrencies.

https://www.ttsec.org.tt/investor-alerts/ (Review recent alerts for any mention of crypto-related schemes).

No such cases have reached a public enforcement stage,

Any actions taken have been private or administrative without public reporting, or

The primary regulatory strategy remains focused on public education and risk mitigation through existing AML/CFT frameworks rather than direct regulation or prohibition of cryptocurrency activities themselves.