Special economic zones will help to reduce white-collar crime, as companies must comply with international and local regulations, Government Senator Renuka Sagramsingh-Sooklal said on Tuesday.
Sagramsingh-Sooklal, during debate on the Trinidad and Tobago Special Economic Zones Bill, 2021, said government had introduced many incentives to outweigh for companies the fact that they would be monitored to prevent white-collar crime.
She said the courts would make an ultimate determination as to whether a CEO or employee commits gross negligence, with the board making the first determination, so as to not infringe on the separation of power between the board and the government.
Consultation on bill has been ongoing since 2017. She said some of the organisations consulted were the Organisation for Economic Co-operation and Development and the European Code of Conduct Group, as well as consultation to ensure the bill was consistent with the revised Treaty of Chaguaramas.
The bill is an act to provide for the designation, development, operation and management of Special Economic Zones, the establishment of the Special Economic Zones Authority, the repeal of the Free Zones Act, Chap. 81:07, the regulation of Special Economic Zones and matters related thereto.
Sagramsingh-Sooklal, responding to concerns raised by Opposition Senator Jerlean John, said compliance with international regulations such as the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) creates an avenue for integration in TT's financial system, especially in the global financial system.
'Some of the advantages of being compliant with AML international standards are preventative measures, as we know, such as customer due diligence, identification of beneficial ownership of financial assets and suspicious transaction reporting, we know, can definitely impede tax fraud and tax evasion. We also have the protection of the integrity and stability of the international financial system, and the SEZs would then benefit at their aim of attracting new and foreign business and business of a different calibre. Strong AML/CFT controls increase public confidence in financial institutions and national systems and promote markets and investments through cross-border financial and direct foreign investment.'
Sagramsingh-Sooklal said the rationale behind the requirement that large businesses have more than 50 employees on-site was to prevent the setting up of shell companies by foreign organisations for money laundering purposes.
Responding to concerns by Independent Senator Paul Richards about SEZs becoming dumping grounds for contraband, fake products, illegal transshipments of contraband, and a lack of transparency and accounting mechanisms, she said Section 45 of the Customs Act had a comprehensive list of items that are prevented from being imported, and the Excise and General Provisions Act both applied to the SEZs. She said the government remained cognisant of the need to protect m
