Central Bank of Trinidad and Tobago (CBTT)

Overview

The Central Bank of Trinidad and Tobago (CBTT) is an independent public institution established by an Act of Parliament on December 12, 1964. As the nation's monetary authority and principal regulator of the financial system, the CBTT operates to promote monetary and financial stability within Trinidad and Tobago.

The Bank's mandate encompasses the formulation and implementation of monetary policy, management of foreign exchange reserves, regulation and supervision of the financial system, and oversight of payment and settlement systems. The CBTT maintains confidence in and promotes the soundness and stability of the financial system through rigorous supervision and prudential regulation.

Current Leadership

Mr. Larry Howai was appointed the 11th Governor of the Central Bank of Trinidad and Tobago on June 24, 2025. Governor Howai brings over 50 years of experience in both the public and private sectors, with extensive background in financial services, including developmental finance, banking, non-bank financial institutions, insurance management, manufacturing, and the energy sector.

As Governor and Chief Executive Officer, Howai is charged with the day-to-day management, administration, direction, and control of the Bank's business, with authority to act in all matters not specifically reserved for the Board of Directors.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The CBTT exercises comprehensive banking supervision over all licensed financial institutions operating within Trinidad and Tobago. The regulatory scope includes:

• Commercial banks
• Development finance institutions
• Credit unions and cooperative credit societies
• Building and loan associations
• Non-bank financial institutions
• Bureaux de change

The Bank's supervisory framework applies prudential standards consistent with international best practices, including Basel Committee standards. The supervision regime aims to ensure:

• Sound financial condition of licensed institutions
• Compliance with prudential regulatory requirements
• Proper governance and risk management systems
• Adequate capital adequacy ratios
• Effective asset quality management
• Liquidity management and stress testing

The CBTT conducts on-site and off-site supervision, issues examination reports, and enforces corrective actions when institutions fail to meet regulatory standards. Supervisory authority includes the power to issue directives, place institutions under receivership, and recommend intervention to the Ministry of Finance where necessary.

The Central Bank regulates the insurance sector, including both life and general insurance providers, through its Insurance Supervision Division. The regulatory framework covers:

• Insurance companies operating in Trinidad and Tobago
• Insurance agents and brokers
• Insurance registrants under the Insurance Act

The CBTT's insurance supervision focuses on ensuring:

• Adequate solvency and reserve requirements
• Compliance with prudential standards
• Sound governance and risk management practices
• Consumer protection and fair dealing

The National Risk Assessment has determined that certain classes of insurance, including general insurance, health insurance, and term life insurance, present low money laundering and terrorism financing risk. However, life insurance and investment-related insurance products are subject to full FATF Standards compliance due to their higher-risk profile.

The Central Bank holds a critical role in Trinidad and Tobago's AML/CFT/CPF framework as a designated Supervisory Authority. The CBTT's AML/CFT responsibilities include:

Regulatory Framework

The CBTT issues Guidelines and Circular Letters providing detailed guidance on AML/CFT/CPF compliance to all regulated entities. Key guidance documents address:

• Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements
• Enhanced Due Diligence (EDD) for politically exposed persons (PEPs)
• Suspicious Activity Reporting (SAR) obligations
• Currency Transaction Reporting (CTR) requirements above specified thresholds
• Record-keeping and retention obligations
• Electronic Money Issuers (EMI) specific AML/CFT requirements

Supervised Entities

The CBTT enforces AML/CFT/CPF compliance across:

• Licensed financial institutions under the Financial Institutions Act 2008
• Insurance registrants under the Insurance Act
• Home Mortgage Bank entities
• Bureaux de change operators
• Money remittance service providers
• Electronic money issuers

Compliance Standards

The CBTT requires all regulated entities to:

• Implement comprehensive AML/CFT policies and procedures
• Conduct transaction monitoring and customer screening
• Report suspicious transactions to the Financial Intelligence Unit (FIU)
• Maintain records of transactions and customer information
• Train staff on AML/CFT compliance
• Conduct regular compliance audits

Financial Intelligence Coordination

The CBTT collaborates with the Financial Intelligence Unit of Trinidad and Tobago on suspicious activity investigation and intelligence sharing. The FIU operates as the central authority for receiving and analyzing AML/CFT reports.

Regulatory Powers

The Central Bank possesses comprehensive enforcement authority to ensure compliance with financial regulations:

• Issuance of Directives: Authority to issue binding directives to regulated institutions requiring corrective actions
• Administrative Penalties: Power to impose monetary penalties for violations
• License Revocation: Authority to revoke or suspend licenses of non-compliant institutions
• Receivership and Intervention: Power to place institutions under receivership or intervention
• Supervisory Orders: Authority to issue orders limiting activities of troubled institutions
• On-Site Examinations: Right to conduct unannounced examinations of regulated entities
• Information Requests: Power to demand documents, records, and information from regulated entities
• Criminal Referrals: Authority to refer violations to law enforcement for criminal prosecution

The CBTT applies a graduated enforcement approach, beginning with advisory letters and escalating to formal enforcement actions based on violation severity and remediation efforts.

Regulatory Role and Function

Legal Foundation

The Central Bank of Trinidad and Tobago derives its regulatory authority from the Central Bank Act, which grants it broad powers to regulate and supervise the financial system. Key legislative frameworks governing the CBTT's operations include:

• Central Bank Act: Establishes the CBTT's independence and core mandate
• Financial Institutions Act 2008: Governs the regulation and supervision of financial institutions
• Insurance Act: Provides the framework for insurance sector regulation
• Home Mortgage Bank Act: Establishes regulatory framework for mortgage lending
• Anti-Money Laundering and Combatting of Terrorism Financing (AML/CFT/CPF) Legislation: Includes the Anti-Money Laundering and Countering the Financing of Terrorism Act and associated regulations

The Financial Obligations Regulations 2010, as amended, designate the Central Bank as a Supervisory Authority for all financial institutions falling under its regulatory purview.

Licensing and Authorization Relevance

The Central Bank of Trinidad and Tobago (CBTT) is a key licensing authority in Trinidad and Tobago's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The Central Bank operates and oversees Trinidad and Tobago's payment and settlement systems, including:

• CBTT-RTGS (Real-Time Gross Settlement System): Handles high-value, time-sensitive payments
• CBTT-ACH (Automated Clearing House): Processes retail and bulk payment transactions
• Foreign Exchange Settlement: Manages cross-border payment settlement and FX transactions

The CBTT sets operational standards, manages systemic risk in payment systems, and ensures resilience and efficiency of the national payment infrastructure. Payment system participants include commercial banks, credit unions, and other authorized financial institutions.

As Trinidad and Tobago's foreign exchange authority, the CBTT:

• Manages the nation's official foreign exchange reserves
• Administers foreign exchange regulations and controls
• Determines exchange rate policy
• Oversees external account transactions
• Manages international payment flows

The CBTT issues guidance on permissible foreign exchange transactions, repatriation of funds, and compliance with balance of payments regulations. The Bank coordinates with the Ministry of Finance on foreign exchange policy matters.

Payment Systems Governed or Overseen

The CBTT operates and/or oversees the national payment and settlement infrastructure of Trinidad and Tobago. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The Central Bank actively participates in international financial supervisory and policy forums:

• Basel Committee for Banking Supervision (BCBS): Coordinates banking supervision standards
• Caribbean Community (CARICOM): Participates in regional financial stability initiatives
• International Monetary Fund (IMF): Coordinates on monetary policy and financial stability
• Financial Action Task Force (FATF): Engages in mutual evaluation and AML/CFT standard-setting
• Caribbean Financial Action Task Force (CFATF): Participates in regional AML/CFT coordination
• World Bank: Collaborates on financial sector development and stability assessment

Trinidad and Tobago has undergone FATF mutual evaluation reports, with the CBTT implementing recommendations to strengthen AML/CFT/CPF frameworks.

Geography and Jurisdiction Notes

Important Departments and Divisions

Trinidad and Tobago's Payment Systems Infrastructure

The Central Bank of Trinidad and Tobago operates payment infrastructure serving approximately 1.4 million people across two islands with legacy systems and gradual modernization.

RTGS System (Real-Time Gross Settlement)

Large-Value Settlement:

• System: RTGS for interbank large-value transfers
• Operator: Central Bank of Trinidad and Tobago
• Settlement Currency: Trinidad and Tobago Dollar (TTD)
• Participants: Licensed commercial banks and authorized financial institutions
• Daily Volumes: Millions of TTD in daily settlements
• Hours: Business days during banking hours (9 AM - 4:30 PM)

ACH System (Automated Clearing House)

Retail Payment Settlement:

• System: Deferred net settlement for checks, bill payments, salary deposits
• Operator: Banking Network (BATT)
• Functions: Check clearing, ACH transfers, automated deposits
• Processing: Batch processing with daily settlement
• Status: Legacy system, gradual migration to real-time rails underway

Card Networks

Visa & Mastercard:

• Dominant international card brands
• Primary merchant acquiring method
• Cross-border transaction processing

Local Card Initiatives:

• Bank-specific branded cards declining in usage
• Limited domestic card schemes

Digital Payment Infrastructure

Status:

• Mobile banking integration with traditional banks
• Growing digital wallet adoption (limited formal ecosystem)
• Integration with regional payment systems (CARICOM)

Licensed Payment Service Providers:

• Commercial banks (7+ major institutions)
• Money transfer operators (remittance focus)
• Limited fintech ecosystem relative to larger jurisdictions

Regional Payment Cooperation

CARICOM Integration:

• Participation in Caribbean Regional Security System (RSS)
• Integration with CARICOM single currency discussions
• Payment interoperability with other Caribbean central banks

Payment System Statistics (2024-2026)

Key Public Resources

Central Bank of Trinidad and Tobago

Email: [Contact information available on official website]

Phone: [Available on official website]

Website: https://www.central-bank.org.tt/

Physical Address:

Central Bank Building

Eric Williams Plaza

Independence Avenue

Port of Spain

Trinidad and Tobago

Primary Divisions:

• Banking Supervision Division
• Insurance Supervision Division
• Payment Systems Division
• Financial Intelligence and Enforcement Division

Key Links:

• Supervision & Regulation: https://www.central-bank.org.tt/core-functions/supervision-regulation/
• AML/CFT Information: https://www.central-bank.org.tt/core-functions/financial-stability/anti-money-laundering-combating-the-financing-of-terrorism-counter-proliferation-financing/
• Payment Systems: https://www.central-bank.org.tt/core-functions/financial-stability/payment-systems/

Notes on Naming and Language