(Trinidad Guardian) The “underground economy” in T&T from illicit operations is valued at TT$60 billion, according to two-year old estimates by the Royal Bank, UNC Senator Wade Mark said on Monday.
“Money laundering is being allowed to take place in T&T under the watch of the present administration and it has been so since 2002…serious money laundering is taking place here,” Mark said in the Senate debate on the Proceeds of Crime Act. Mark said however, the “sweeping” legislation could breach the rights of citizens especially those organisations covered by the bill.
He said there was little consultation with the public on it. Mark said bank accounts could be monitored and any suspicious transaction could be reported. “And if you don’t have properly trained people, then honest professionals could get a raw deal,” Mark said. He said in the west of Trinidad multi-storeyed complexes were being erected with apartments valued between TT$10 million and TT$15 million each. “There are people who have already bought them. Why has Government not taken action when Government is aware the underground economy is close to TT$60 billion?” Mark added. When Trade Minister Mariano Browne asked Mark the source of his estimate for the “underground economy,” Mark said it came from Royal Bank at a seminar about two or three years ago.
“But you should be telling us the extent of this underground economy! You should know. The Central Bank should have an idea,” Mark told Browne. Mark said Government’s action on money laundering was lethargic and the State had undersourced agencies which could deal with it. He said the US State Department’s Narcotics (February) report confirmed T&T had moved from being a country being “monitored” to a country of “concern.” Government was presented with 49 recommendations on the issue, but nothing was done, he said. He said the US division had stated there was no indication that Govern-ment had adopted a risk-based approach on handling money laundering and terrorism financing.
Mark accused Government of waiting until the “11th hour” to present the legislation since he noted that the Financial Action Task Force (FATF) had expressed concern since 2007 that there were few prosecutions and no convictions on money laundering offences. Mark said Government was now “hustling” to present the bill since a FATF meeting was being held in Paris on Friday and T&T risked being blacklisted there, if the bill was not passed.