Industry Questions/Comments
Queries on Annual Returns
Central Bank of Trinidad and Tobago
The comments and queries on the Forms for the Annual Returns are under review and the Central Bank will publish a response on a date to be determined.
Query on Response to Queries on Annual Return
We observed that the IA Annual Returns have already been posted to CBTT’s website. Clarification is therefore required as to whether queries previously submitted are still being taken into consideration for further amendment/instruction/guidance on the returns or whether this process has already been completed. Furthermore, clarification is also required as to whether the queries submitted by individual companies have already been considered and incorporated, where applicable, in the IA Annual Returns posted on CBTT's website. If queries are still being considered, is there a timeframe by which this process will be wrapped up and the final returns issued given that the first potential financial year end after commencement of the Act is March 31, 2021?
Query on Annual Returns
Incorporated Agents as we currently know them, who operate within the confines of the Insurers AML/CFT Policy and the Insurer keeps all the documents associated with the client file. However, the New Act requires that under Section 136(3) the Agent is required to, …. submit an annual report including recommendations to the Central Bank within four months of the end of its financial year. Please advise of the necessity for this requirement, since the Insurer retains the client documentation and has an external audit.
Query on Annual Returns
The following is in respect of all the comments posted by insurers above:
All queries and comments received were addressed and incorporated in the Annual Returns and Forms that are placed on the website.
Queries/comments may continue to be submitted to the email address: [email protected]
The returns have been finalized and ready for use by the industry, any further queries raised that are associated with the preparation of the returns may be submitted to the email address stated above. If further amendments are made the industry will be informed accordingly, however we do not anticipate that such amendments, if any, would impact those companies with a March 31st year end.
Compliance with section 136(3) of the Insurance Act 2018 is dependent on whether the registrant is a ‘financial institution’ and required to comply with laws regarding AML/CFT/PF.
Agencies are no longer ‘financial institutions’ under the Proceeds of Crime Act (POCA). Further, depending on the nature of business, certain brokerages are also exempted as financial institutions under POCA.
Agencies and exempted brokerages will not be required to submit the annual AML/CFT report as required under section 136(3). However, if a brokerage is not exempted, then it must comply with the 136(3) requirement.
As a point of clarification, in addition to the insurer retaining client files, brokerages and agencies are also required to keep proper records to enable an audit by its external auditor or the Central Bank as the case may be. Therefore, non-exempt brokerages should maintain proper records for audit purposes .
