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OECD Report: Turks and Caicos Islands’ Compliance with Financial Standards

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Overall Assessment

The Organisation for Economic Co-operation and Development (OECD) has published a report on the Turks and Caicos Islands’ compliance with certain financial standards. The overall rating for the islands is “Largely Compliant” in terms of its implementation of the OECD’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standard.

Key Findings

  • Ownership and Identity Information (ToR A.1): The report notes that the beneficial ownership information available may not necessarily identify all beneficial owners of a limited partnership in line with the standard.
    • Recommendation: Ensure that information on all beneficial owners of a partnership is available in line with the standard.

Specific Findings

Anti-Money Laundering Supervision (ToR A.2)

  • The report notes that while there are some deficiencies, the Financial Services Commission has recently strengthened its supervision programme of CSPs, lawyers, and accountants.
    • Recommendation: Monitor the application of the supervision programme and apply effective sanctions in cases of serious breaches with AML obligations.

Accounting Records (ToR A.2)

  • The report notes that while accounting requirements cover all relevant legal entities and arrangements, the existing system of monitoring to ensure the accuracy and availability of accounting records is not yet fully in place.
    • Recommendation: Implement an effective system of oversight and enforcement to support the legal requirements which ensure the availability of accounting information for legal entities and arrangements in all cases.

Banking Information and Beneficial Ownership (ToR A.3)

  • The report notes that while the Financial Services Commission has monitored its banks, it has only recently formalised a new risk-based supervision approach to banks, and more time is required to confirm the effective application of this supervisory approach.
    • Recommendation: Monitor the application of the risk-based supervision to banks, to ensure that they comply with their record-keeping obligations.

Timeline

  • The OECD recommends that the Turks and Caicos Islands should submit a follow-up report by June 2020, detailing steps taken to address these recommendations.