Local officials being better equipped to ‘follow the money’

A GROUP of 30 local officials are undergoing a week of intensive training from visiting officials from the US Department of Treasury’s Internal Revenue Service (IRS), to boost the fight against financial crimes in Barbados.

At the end of the course, the officials will be better equipped to tackle areas such as money laundering, tax evasion and other forms of fraud.

The Financial Investigation Techniques training course which is being facilitated by the IRS’ National Criminal Investigation Training Academy, was officially launched at the Barbados Revenue Authority’s Warrens Tower II offices yesterday afternoon and according to Revenue Commissioner Margaret Sivers, a coordinated and multi-disciplinary effort will be critical in the fight against financial crimes.

Participants were chosen from the Royal Barbados Police Force, the Customs and Excise Department, the Office of the Attorney General and the BRA. It was stated that this coordinated effort will strengthen the intelligence gathering capacity across the disciplines of tax enforcement, law enforcement and public prosecution in Barbados.

During the opening ceremony Sivers explained that challenging economic times have created increased expectations from enhanced revenue administration with an effort to improve the yield of compliance as well as effective management of tax receivables. “Further to this the landscape of taxation has changed and there is now worldwide attention on international tax transparency as governments, administrations and international bodies seek to reduce the level of tax evasion and the use of aggressive tax planning mechanisms to evade or avoid paying taxes.”

“Illicit financial transactions are the focus of worldwide attention. Tax evasion, corruption, fraud and terrorist financing are just a few of the types of crimes that revolve around money. In all these cases, a financial investigation often becomes a key element in cracking the case,” the revenue commissioner said.

With traditional law enforcement relying on tools such as crime scene analysis, physical analysis, fingerprint identification and eye witness accounts, she noted that these techniques however have many limitations as we move into the sphere
or more sophisticated financial crimes.

“Sophistication and in most cases legal schemes, used to evade and avoid the paying of taxes demand the use of financial and analytical capability by investigators capable of wading through complex paper and computerised financial records to enable them to follow the money.”

US Ambassador to Barbados, the Eastern Caribbean and the OECS Linda Taglialatela while stressing the importance of the training session, explained that it is part of a continuing series of efforts by the US government in collaboration
with the government of Barbados, to enhance voluntary compliance efforts in regards to tax revenues, and raise awareness of illicit financial transactions.

“With the rapid expansion of global banking an instantaneous transfers of money, there is a need for revenue authorities, law enforcement personnel and other government personnel to work closely with each other to ensure that the appropriate tax revenues are assessed and collected, and that money launderers do not take advantage of potential vulnerabilities in the financial system.

She also noted that the training will focus on using financial investigative techniques to assist in Barbados’ assessment and collection of tax.

“It includes methods for identifying fraud and money laundering. The course will cover topics as evidence gather and analysis, interviewing, preparation for courtroom activities and an in-depth practical exercise,” she said. (JH)