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Anti-Money Laundering (AML) Framework in Turks and Caicos Islands (TCI)

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The Turks and Caicos Islands (TCI) has a well-established framework for combating money laundering, which is overseen by various government agencies and institutions. This article provides an overview of the key points related to anti-money laundering regulations in TCI.

Government Structure

Executive Council

The executive arm of government in TCI is the Executive Council, comprising 9 members:

  • The Governor
  • 6 Ministers
  • 2 ex officio members

The Chief Minister also serves as the Minister of Finance, Development, and Commerce.

TCI’s legal system is based on the English model but has a written constitution that protects fundamental rights and freedoms. Most laws are derived from ordinances passed in the Legislative Council and, to some extent, from legislation extended to TCI by the United Kingdom.

Court System

The court system in TCI consists of:

  • Magistrate’s Court
  • Supreme Court (with jurisdiction similar to the High Court of England)
  • Court of Appeal
  • Privy Council in London as the final appellate body

Financial Supervision

Financial Services Commission (FSC)

In May 2002, the FSC was established as a statutory body responsible for financial supervision in TCI. The FSC has a board of directors composed of 7 to 9 persons, including the permanent secretary and managing director.

Executive responsibility for licensing and supervision is exercised by a Licensing Committee.

Anti-Money Laundering (AML) Framework

Proceeds of Crime Money Laundering Regulations (PCMLR)

Adoption of the PCMLR in 1999 created a sound legal basis for the AML/CFT regime. The PCMLR sets out fundamental requirements for regulated sectors to establish and maintain procedures for:

  • Customer identification
  • Record-keeping
  • Internal reporting
  • Employee training

AML Regulators

Financial Services Commission (FSC)

The FSC acts as a single regulator responsible for licensing and supervision of all institutions licensed under TCI financial legislation.

Financial Crimes Unit (FCU)

The FCU of the Criminal Investigations Division is the primary law-enforcement agency with responsibility for receiving, analyzing, and investigating money laundering offenses.