AMCHAM supports Companies Act amendments

The American Chamber of Commerce (AMCHAM) says it supports the new amendments to the Companies (Amendment) Act.

The chamber and the Caribbean Corporate Governance Institute (CCGI) recently held a breakfast seminar to discuss the implications arising from the amendments.

The amendments were proclaimed into law on May 29, and by law, companies now had a legal obligation to identify their “beneficial owners.”

Additional changes to the legislation include shareholders, who do not have a beneficial interest in the shares held by them, being under an obligation to declare their interests to the respective company and identify the ultimate beneficial owners.

Kamla Rampersad De Silva, chief executive officer of the CCGI said, “The amendment to the Companies Act in Trinidad and Tobago is one of the most important legislative changes that has taken place for companies because it creates obligations that did not exist before and falls in line with the objective at CCGI to help improve the governance of organisations in Trinidad and Tobago and the region. This includes helping directors be aware of the changing environment which impacts their companies.”

Meanwhile, AMCHAM said these measures were another step in the right direction in the fight against white-collar crime as a tool to unmask those with unexplained wealth and income.

“Too often, the legitimate business community is painted in a negative light by individuals who call themselves businesspeople but who carry out no visible, legitimate business activity.

“We note the practice of hiding sources of income is often closely linked to money laundering, tax evasion and the financing of terrorist groups. The amendment also addresses some of the deficiencies highlighted in the 2016 Mutual Evaluation Report issued by the Caribbean Financial Action Task Force regarding our nation’s failure to implement proper anti-money laundering and counter-terrorist financing measures,” AMCHAM said in a statement.

However, the chamber said it wanted to see greater public sensitisation of the law to generate meaningful change.

“Unfortunately, all administrative procedures still have not been implemented even though filings under the law were supposed to happen by August 30. This creates a legal lacuna and such uncertainty is never good for business confidence,” the statement said.

AMCHAM’s chief executive officer Nirad Tewarie said he believed the law will strengthen TT’s position to implementing effective anti-money laundering and counter-terrorist financing measures.

“Fighting white-collar crime is a very serious concern for Trinidad and Tobago and especially for attracting business. We need to show strict adherence to the rule of law if we intend to create an investment climate that attracts foreign firms, creates more jobs and reduces unemployment. AMCHAM is committed and willing to work with all agencies to continue to reduce the risks and deficiencies that impact on anti-money laundering and counter-terrorist financing measures,” he said.