Turks and Caicos Islands Fails to Meet International Standards on Money Laundering Detection

The Financial Action Task Force (FATF) has conducted a recent evaluation, revealing that the Turks and Caicos Islands’ anti-money laundering/counter-terrorist financing (AML/CFT) system falls short of meeting international standards. The assessment, which was based on information provided by the country and gathered during an on-site visit from September 10th-21st, 2018, analyzed the level of compliance with FATF’s 40 Recommendations.

Weaknesses Identified

The report highlights significant weaknesses in the system, despite some progress having been made. The key findings include:

• Inadequate customer due diligence: The Turks and Caicos Islands’ AML/CFT regime requires strengthening to effectively prevent money laundering and terrorist financing.
• Insufficient reporting requirements: The country’s reporting requirements need improvement to ensure timely and effective detection of suspicious transactions.
• Limited international cooperation: Increased cooperation with foreign authorities is necessary to combat the global nature of money laundering and terrorist financing.

Recommended Measures

To improve the system’s effectiveness, the assessment recommends a range of measures, including:

• Enhancing customer due diligence
• Improving reporting requirements
• Increasing international cooperation

Urgent Action Required

The findings of this evaluation have been reviewed and endorsed by the FATF, highlighting the need for urgent action to address the identified weaknesses. Key findings and priority actions are outlined in the Executive Summary of the report.

By taking swift action to address these weaknesses, the Turks and Caicos Islands can improve its AML/CFT regime and ensure greater protection against money laundering and terrorist financing.