Risk-Based Approach Crucial in Combating Money Laundering and Terrorist Financing in Turks and Caicos Islands
The Turks and Caicos Islands (TCI) has established itself as an attractive destination for legitimate financial activities, but this also poses risks of money laundering and terrorist financing that threaten the integrity and stability of the country’s financial system.
Government Committed to Upholding International Standards
The TCI government has demonstrated its commitment to upholding the highest international standards in preventing and combating money laundering and terrorist financing through the completion of its first National Risk Assessment (NRA) on these issues. This NRA reflects a systematic and multidisciplinary participatory process facilitated by the World Bank, which will enable the country to build capacity for the long-term and establish a regular update process.
Benefits of the NRA
- Enabling the country to build capacity for the long-term
- Establishing a regular update process
- Enhancing the existing framework and introducing new measures where necessary
- Providing further protection against money laundering and terrorist financing risks
Risk-Based Approach Essential in Targeting Resources
A risk-based approach is essential in preventing money laundering and combating terrorist financing. This involves targeting resources to where they will be most effective in mitigating identified risks.
Key Principles of a Risk-Based Approach
- Identifying, assessing, and understanding the money laundering and terrorist financing risks within jurisdiction
- Taking action and applying resources accordingly
TCI’s NRA a Significant Step Forward
The TCI’s NRA is a significant step forward in understanding the country’s money laundering and terrorist financing risks. The assessment will provide a collective understanding of these risks, enabling the government to enhance its existing framework and introduce new measures where necessary to provide further protection.
Long-term Benefits for TCI
- Enhanced capacity-building
- Regular update processes
- Improved understanding of money laundering and terrorist financing risks
- Contributing to the continued integrity and stability of the country’s financial system, supporting its growth as a nation
Government Leadership in Combating Money Laundering
The large Ministerial presence at the recent National Risk Assessment Final Workshop on Money Laundering and Terrorist Financing demonstrates the government’s commitment to combating these threats. This leadership will be crucial in implementing effective measures to mitigate identified risks and maintain the country’s reputation as a responsible international financial centre.