Imbert pilots bill on $100

Saying this country has too much dirty money in circulation, Finance Minister Colm Imbert at 8.10 pm on Friday piloted a bill to eliminate the current $100 bank note and replace it with a new polymer note. He said for a time both bills could be used until the old bill is invalidated.

The bill gives the Central Bank a discretion to allow special cases of people with good reasons a three month period to exchange their old bills, such as people out of the country or in hospital. Imbert added that if there is any good reason, the relevant minister can extend the period. He said the appointed day would be “very near future.”

Imbert said the bill also amends how the POCA defines “a large transaction” which is $90,000 in cash that every bank must report to the FIU. He said the bill gives the Government the flexibility to adjust that figure.

Chaguanas West MP Ganga Singh urged a new figure be stated to specify a certainty. Imbert said all will be revealed in due course, saying it is a national security measure to deal with criminals. “We have no intention of indicating tonight when this will take place or what the adjustment in the amount will be.”

He said the bill lets the Finance and National Security Ministers the power to adjust the sum defined as a large transaction under the Financial Obligations Act and POCA respectively. He said at present the Central Bank is constrained to give three months notice to abolish a bank note, by the Government feels it needs more flexibility, to be 14 days. Imbert said the Central Bank with the Finance Minister will set out the process to redeem existing banknotes. He said this demonetisation is driven by the Ministry of National Security.”When you have too much dirty money in a system you have a dual economy.” He said that causes a loss of revenue to the country plus confusion in knowing what is happening with the country’s money supply, due to the underground economy.

“This initiative has been planed for quite a long time.” He said the Government has met the Central Bank and private banks, and want

“I can’t underestimate the pernicious effects of dirty money on a society. There is so much circulating in Trinidad.”

Pointe-a-Pierre David Lee said the Opposition is in full support of the new polymer as a way to take dirty money out of the financial system. He said the new note’s security features auger well for TT, recalling how the former Kamla Persad-Bissessar government had introduced the $50 polymer bill under former Central Bank governor Jwala Rambaran. Lee however was surprised the Government gave no introduction date for the bill, saying any poor management could cause chaos and panic in the financial system especially at this Christmas period.