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Turks and Caicos Islands: Banking Regulations Compliance
In the wake of the global economic recovery, the Turks and Caicos Islands (TCI) is once again emerging as an attractive zero-tax jurisdiction. Located approximately 500 miles southeast of Miami, Florida, TCI is a British Overseas Territory that boasts significant corporate and financial law stability over many decades.
Company Registrations
Company registrations in TCI occur under the provisions of the TCI Companies Ordinance (1981), which contains most elements seen in similar statutes in regional financial centers. The preferred corporate vehicle for conducting international business is the “exempted” company, limited by shares, which has no requirement to file a current list of shareholders or directors with the TCI Companies Registry.
Partnerships
Partnerships are also recognized in TCI, with general partnerships dating back to 1799 when English common law was applied to the territory. Limited Partnerships are permitted under the TCI Limited Partnership Ordinance (1992), similar to many other jurisdictions but retaining no-tax benefits.
Trusts
Trusts are another area of focus in TCI, with the Trusts Ordinance (1990) providing a comprehensive framework for trust structures. The ordinance includes anti-forced heirship provisions, abolition of the rule against perpetuities, and solvency-based creditor protection provisions.
Financial Services Regulation
In terms of financial services regulation, TCI has an extensive scheme that governs most aspects of the industry, including:
- Banks
- Insurance companies
- Brokers
- Agents
- Company administration managers
- Trust companies
- Investment dealers
- Mutual funds administrators
- Money transmitters
The Financial Services Commission (FSC) was established in 2007 as an independent body to supervise and regulate licensees under financial services regulatory ordinances.
Anti-Money Laundering Regime
TCI’s anti-money laundering regime is also robust, with regulations aligned to international best practices. All local service providers are obliged to comply with regulations and are subject to FSC compliance audits.
Compliance Requirements
As a result, any individual or corporation seeking to register a legal entity or obtain TCI licensing must comply with relevant regulations. The TCI Government and the FSC have continued to refine these regulations, most recently in 2014, which has added to international confidence in doing business in and with TCI.
Luxury Tourism
Luxury tourism is another key sector for TCI’s economy, with the territory experiencing heavy foreign direct investment in five-star hotel and condominium resorts before the 2008 financial crash. As regional economies recover, TCI is once again attracting strong interest from international resort developers, with several major new developments planned to commence construction soon.
Expert Insights
Owen Foley, Partner at Misick & Stanbrook, has extensive experience in corporate and commercial law, commercial property development, and tourism, and advises on foreign direct investment, agreements between investors and the TCI Government, and related financing, joint venture, and corporate structuring issues.