TT economy could crash

Piloting the 30-clause legislation, the Minister said measures to implement a tax agreement between this country and the US must be enacted by September 30.
“I hope every person in this House understands,” Imbert said. “We have to do this. If we do not do this the banking system of Trinidad and Tobago will crash, the economy of Trinidad and Tobago will crash.”

The Minister of Finance continued, “If we don’t pass this legislation, time will run out on us. we are coming now to the Parliament to see if we can get the necessary support from the Opposition to ensure that TT does not become a pariah state in terms of the global financial community.”

Imbert urged the Opposition to support the legislation, which requires a special three-fifths majority given how it affects the Constitutional right to privacy and family life. In seeking the House’s support for the legislation, Imbert said it was part of a global trend towards information-sharing and transparency. He said failure to pass the law would be dire, citing TT’s past experiences with being placed on a FATF grey list. “A number of financial institutions stopped doing business with nationals of Trinidad and Tobago,” Imbert said.

He sought to paint a picture of, “how terrible it would be if we do not comply” citing the experience of Belize. “we are not fighting anybody,” Imbert said to the Opposition. “we have come here to ask for cooperation and support. we are not playing politics here.” Imbert said every single transfer of funds from TT to the US – including to buy basic goods, engage in trade, and buy medicine – would be subject to an automatic 30 percent deduction by US banks for IRS purposes.

Likening the hypothetical scenario to an illness, he said “stage 2” would see local banks lose correspondent banking relations, and credit cards shut down. Imbert said the issue had been in progress for seven years and the Opposition was – from its time in Government – aware of the requirements. He acknowledged the circulation of the bill was done on short notice. “I am very well aware that members opposite received this legislation at short notice,” the Minister said. “However...they were familiar with this matter for five years and now six years and three months.”

Imbert said the matter was of such importance the Government was willing to suspend proceedings to confer with the Opposition.