With an increase in non-bank payment service providers, fintechs and virtual asset services, the Central Bank of Trinidad and Tobago is seeking to ensure adequate monitoring and safeguards.
At a Public Consultation on the Draft Payment Systems and Services Bill and Accompanying Regulations on Wednesday, Central Bank Governor Larry Howai noted that the payment landscape is evolving, with an increase in non-bank payment service providers, fintechs and virtual assets services.
He said the Central Bank of Trinidad and Tobago hopes to manage risks to consumers, with adequate monitoring and safeguards.
“Our current legislative framework, though efficient in the past, is no longer fit for the evolving environment. We need a modern cohesive framework, one that supports innovation while ensuring safety, fairness and stability.”
Assistant Manager of Payments and Financial Markets Infrastructure (PFMI), Ms. Jeanette Joseph, gave an overview of the objectives.
“It is to promote safety, soundness and efficiency of the National Payment System, to provide greater legal certainty and protection of users of payment clearing and settlement systems, to implement the risk-based regulatory regime, calibrated to the nature, scale, and risk of different payment activities and entities, and also to facilitate e-commerce, encourage cashless payments, and promote financial inclusion.”
While payment service providers must treat user funds as belonging to users at all times, she explained that the Central Bank will also facilitate a consumer complaint mechanism.
Deputy Governor of the Central Bank, Dr. Dorian Noel, says that cross-border financial trade will be facilitated by utilising the CARICOM Payments and Settlement Systems to reduce reliance on the US dollar.
“But we are trying a new approach, CARICOM Payment and Settlement System, it will be a faster cross-border payment system, it will be less reliance on the whole chain of correspondent banking system, because the region is facing the risk as we speak, and it will involve the Central Bank playing a part in providing those cross-border payments.”
The consultation process is currently ongoing, and all feedback will be considered before the revised Bill is submitted.