The Financial Intelligence Unit of Trinidad and Tobago has issued a warning to reporting entities, urging them to develop and implement written compliance programmes, duly approved by senior managers, that provide for the internal/external independent testing of systems/controls for compliance with the island republic's financial crime laws and regulations.

In accordance with section 55C (2)(b) Proceeds of Crime Act Chapter 11:27 (amended in an omnibus bill introduced in Parliament last year), financial institutions and listed businesses ('reporting entities') are required to develop such programme to comply with the anti-money-laundering and terrorist finance laws. The FIU warns: "As required by law, independent testing of the written compliance programme by competent professionals will assess whether the reporting entity is compliant...enforcement action may be taken against a supervised entity for failure to comply with the...provisions."

Competent professionals should possess qualifications in law, accountancy, business, management or some other relevant subjects. They should have sound knowledge of AML/TF laws and regulations and the Financial Action Task Force's standards as evidenced by certification and/or sufficient experience in AML/TF work. In circumstances where an internal audit is not feasible, for example, for businesses such as sole traders or sole practitioners, the FIU is prepared to accept an external audit report.

Non-regulated financial institutions and listed business ('supervised entities') are required to conduct independent testing for compliance annually or at such other periods required by the FIU. A copy of each external audit report, duly approved by senior managers, must be submitted to the FIU. The law that underpins this was amended in the recent Miscellaneous Privisions (Proceeds of Crime, Anti-Terrorism, Financial Intelligence Unit of Trinidad and Tobago) Act.