Financial Crime World

Anti-Money Laundering (AML) Regulations in the Turks and Caicos Islands

The Turks and Caicos Islands (TCI) have a comprehensive set of anti-money laundering (AML) regulations to prevent and detect money laundering within its financial system. This guide provides an overview of the key laws, regulations, and guidelines that businesses operating in the TCI must comply with.

The Proceeds of Crime Ordinance (POCO) 2007

The POCO 2007 is a critical piece of legislation that deals with money laundering and related offenses. Key provisions include:

  • Concealing or disguising the origin of property: Any person who intentionally conceals or disguises the origin of property to avoid detection by law enforcement.
  • Dealing in proceeds of crime: Engaging in any business or activity involving the proceeds of crime, with knowledge that such proceeds are derived from criminal conduct.
  • Failing to disclose knowledge or suspicion of money laundering: Failing to report a transaction or matter that may involve money laundering, when having reasonable grounds for knowing or suspecting that it is connected with money laundering.

The Anti-Money Laundering Regulations 2007

These regulations aim to prevent and detect money laundering within the TCI financial system. Key requirements include:

  • Establishing systems and mechanisms: Relevant businesses (such as banking, investment dealing, insurance agency, lending) must establish systems and mechanisms for preventing and detecting money laundering.
  • Conducting customer due diligence: Businesses must conduct customer due diligence to ensure that customers are not involved in money laundering activities.

The Anti-Money Laundering and Prevention of Terrorist Financing Code

This code provides guidance and requirements for compliance with POCO 2007, the AML Regulations, and itself. Key requirements include:

  • Prevention of terrorist financing: Businesses must establish systems and mechanisms to prevent and detect terrorist financing.
  • Reporting suspicious transactions: Businesses must report any suspicious transactions or matters that may involve money laundering or terrorist financing.

Misick & Stanbrook’s Anti-Money Laundering Policy

Although Misick & Stanbrook is not a “regulated business,” its supply of legal services involving participation in financial or real estate transactions are considered “relevant business” under the Regulations. Therefore, it must comply with AML requirements, including:

  • Conducting customer due diligence: Misick & Stanbrook must conduct customer due diligence to ensure that customers are not involved in money laundering activities.
  • Establishing systems and mechanisms: Misick & Stanbrook must establish systems and mechanisms for preventing and detecting money laundering.