Trinidad and Tobago -- Travel Rule Implementation Regulatory Overview

Trinidad and Tobago has made significant progress in implementing the FATF Travel Rule, primarily through the Virtual Asset Service Providers Act, 2022.

Here's a breakdown of its status:

Status of FATF Travel Rule Implementation in Trinidad and Tobago

1. Whether Adopted:

Yes, the FATF Travel Rule requirements have been adopted into Trinidad and Tobago's legal framework. This was primarily achieved through the Virtual Asset Service Providers Act, 2022 (VASP Act).

2. Effective Date:

• The Virtual Asset Service Providers Act, 2022 was assented to on December 14, 2022, and gazetted soon after.
• While the Act laid down the legal framework, the Central Bank of Trinidad and Tobago (CBTT) subsequently issued detailed guidance and established the licensing framework for VASPs.
• The CBTT began accepting applications for registration and licensing of VASPs in September 2023, with the full operationalization of the regulatory framework and enforcement of the VASP Act's requirements (including the Travel Rule) for licensed entities becoming effective in May 2024. VASPs operating in T&T are expected to be compliant as of this date.

3. Threshold Amounts:

The VASP Act and the Central Bank's Guidance Note stipulate the following thresholds for the transmission of originator and beneficiary information:

• For cross-border virtual asset transfers: Information must accompany the transfer for transactions equal to or exceeding US$1,000 or €1,000 (or the equivalent in other currencies).
• For domestic virtual asset transfers: Information must accompany the transfer for transactions equal to or exceeding US$3,000 or €3,000 (or the equivalent in other currencies).
• Important Note: Regardless of the threshold, VASPs are required to collect and retain originator and beneficiary information for all virtual asset transfers, including those below the thresholds, and provide it to competent authorities upon request.

4. Which VASPs Are Covered:

The VASP Act, 2022 broadly defines and covers Virtual Asset Service Providers that conduct one or more of the following activities for or on behalf of another natural or legal person:

• Exchange between virtual assets and fiat currencies.
• Exchange between one or more forms of virtual assets.
• Transfer of virtual assets.
• Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.
• Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset.

This includes entities involved in:

• Virtual asset exchanges.
• Cryptocurrency transfer services.
• Virtual asset custody providers (wallets, etc.).
• Initial Coin Offering (ICO) platforms or advisors.

5. Technical Implementation Requirements:

The VASP Act and the Central Bank's Guidance Note require VASPs to:

• Collect and Transmit Required Information:
  • For Originator: Name, Virtual Asset Address (or unique transaction identifier), physical address or national identification number or customer identification number, date and place of birth (if applicable).
  • For Beneficiary: Name, Virtual Asset Address (or unique transaction identifier), physical address or national identification number or customer identification number, date and place of birth (if applicable).
• Secure Transmission: Ensure that the required information is transmitted securely and reliably with the virtual asset transfer.
• Real-time or Near Real-time Availability: The information should be made available to the beneficiary VASP and competent authorities in a timely manner.
• Record Keeping: Maintain records of all collected information for at least five years from the date of the transaction.
• Interoperability: While no specific technology standard is mandated (e.g., TRISA, Shyft, OpenVASP), VASPs must implement solutions that allow them to fulfill the data transfer and record-keeping requirements in a secure and verifiable manner. They are expected to have robust systems for identity verification (KYC) and transaction monitoring (AML/CFT).

6. Penalties for Non-Compliance:

The Virtual Asset Service Providers Act, 2022, outlines significant penalties for non-compliance with its provisions, including those related to AML/CFT and the Travel Rule:

• Operating Without a License:
  • For an individual: A fine of TTD $500,000 and imprisonment for five years.
  • For a body corporate: A fine of TTD $2,000,000.
• Failure to Comply with AML/CFT Obligations (including Travel Rule):
  • The Act grants the Central Bank significant enforcement powers, including issuing directives, imposing administrative penalties, and revoking licenses.
  • Failure to comply with any provision of the Act or a directive issued by the Central Bank can result in substantial fines and, in some cases, imprisonment. Specific penalties are often outlined for various offenses within the Act, with general penalties for non-compliance often mirroring those for operating without a license for serious breaches.
• Falsifying Information: Severe penalties, including fines and imprisonment, are stipulated for providing false or misleading information.

References:

1. The Virtual Asset Service Providers Act, 2022:

   • Gazetted link often available through the official Trinidad and Tobago Parliament or Attorney General's Chambers. You might need to search for "Trinidad and Tobago Virtual Asset Service Providers Act 2022 PDF" on the Attorney General's website for the definitive version.
   • While a direct, stable URL for the official gazetted Act can be tricky to find from a general search, it is legally published. Example search result: Law Commission of Trinidad and Tobago (lawreform.gov.tt) often links to legislation.
   • A direct PDF of the Act can often be found via a search engine, e.g., "Virtual Asset Service Providers Act, 2022 Trinidad and Tobago" and looking for results from .gov.tt domains.

2. Central Bank of Trinidad and Tobago (CBTT) Guidance Note for Virtual Asset Service Providers:

   • This document provides detailed operational guidance on the VASP Act, including specific requirements for AML/CFT, Travel Rule, and licensing.
   • URL (CBTT Website): https://www.central-bank.org.tt/
   • You would typically navigate to "Financial Institutions > Supervision > Virtual Asset Service Providers" or search for "VASP Guidance Note" on the CBTT website. The CBTT website is the authoritative source for their guidance notes.

It's crucial for any VASP operating in Trinidad and Tobago to consult the latest versions of the VASP Act and the CBTT's Guidance Notes directly to ensure full compliance.