Central Bank, FIU: Stay vigilant against online financial crimes

THE Central Bank and the Financial Intelligence Unit (FIU) continues to urge the public to remain vigilant against becoming the victims of fraudulent online financial crimes during the covid19 pandemic. Officials from both entities commented on this topic during a virtual meeting with members of the Finance and Legal Affairs Joint Select Committee (JSC) on Friday.

The meeting was held to discuss the implementation of a regulatory framework for the development of financial technology (fntech) in TT. Central Bank Governor Dr Alvin Hilaire said fintech is seductive.

"You see all these on TV. You could do this very quickly. Don't worry about it just put in your number and you will get money." He said the bank believes education is key to ensuring that people do not fall prey to these schemes.

The bank takes a similar approach towards cryptocurrency, defined as a virtual or digital currency.

Hilaire said, "Cryptocurrency has certain characteristics that you need to be very wary." Cryptocurrency is not linked to the production of any established commodity such as automobiles or copper.

Hilaire observed, "It is kind of just something that is by itself. It is kind of fabricated out of thin air. The value could fluctuate wildly." He added this is why the bank, FIU and Securities and Exchange Commission (SEC) issued a joint statement some time ago, advising citizens to be wary of investing in cryptocurrency.

Hilaire also said cryptocurrency schemes could open avenues for activities such as money laundering.

FIU legal services director Kylene Dowden agreed with Hilaire. She said consideration has been given about having questionable fintech activities being incorporated into the suspicious transaction reports (STRs) which the unit uses to gather intelligence on suspicious financial activities.

Dowden also said during the pandemic, there was an increase in romance scams. "A lot of vulnerable Trinidadians and Tobagonians, have been subjected to fraudulent romantic encounters online." She said this involved people being extorted for money by people they meet online, who claim to be in love with them.

Through collaboration with law enforcement agencies and public education, Dowden said the FIU is increasing public awareness about these types of scams.

Digital Transformation Minister Hassel Bacchus disagreed with suggestions by Barataria/San Juan MP Saddam Hosein that digitising the economy and creating a cashless society was easy. "Getting to a cashless society is not a one-year project."

Bacchus said it was an extensive and collaborative process amongst several entities. Finance Ministry deputy comptroller Nelisha Dany said the Trade and Industry Ministry was looking at using its Single Electronic Window and TT Biz Link as online platforms which other government agencies could use to digitise some of their services