Turks and Caicos Islands Makes Significant Progress in Strengthening AML/CT Framework

Caribbean Financial Action Task Force (CFATF) Announces Positive Results

The Caribbean Financial Action Task Force (CFATF) has announced that the Turks and Caicos Islands has made significant progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework since its 2020 mutual evaluation. As a result, the country has been re-rated on two of the 40 FATF Recommendations.

Enhanced Follow-up Process

The Turks and Caicos Islands was placed under an enhanced follow-up process following the adoption of the CFATF mutual evaluation report, which assessed the effectiveness of the country’s AML/CFT measures and its compliance with the FATF Recommendations. In line with the CFATF Procedures for the Fourth Round of AML/CFT Mutual Evaluations, the Turks and Caicos Islands has reported back to the CFATF on the progress it has made in strengthening its AML/CFT framework.

Progress Made

The report analyzes the country’s progress in addressing technical compliance deficiencies identified in the mutual evaluation. Notably, the CFATF has re-rated the Turks and Caicos Islands as:

• “Largely compliant” for Recommendation 13 (Correspondent Banking)
• “Compliant” for Recommendation 28 (Regulation and Supervision of DNFBPs)

reflecting significant progress made by the country.

Meeting Requirements

The report also examines whether the Turks and Caicos Islands’ measures meet the requirements of FATF Recommendations that have changed since its 2020 mutual evaluation, taking into account any new measures implemented since then. As a result, the Turks and Caicos Islands is now rated as Compliant or Largely Compliant with 37 out of the 40 FATF Recommendations.

Welcome Development

The CFATF’s announcement comes as a welcome development for the international financial community, highlighting the country’s commitment to combating money laundering and terrorist financing.