Financial Inclusion and Money Laundering Trends Take Center Stage in Turks and Caicos Islands

Government Takes Significant Step Forward in Strengthening Financial Framework

The Caribbean Financial Action Task Force (CFATF) has upgraded the Turks and Caicos Islands’ rating on two key anti-money laundering and counter-terrorist financing (AML/CFT) recommendations. This move is seen as a crucial step forward in promoting transparency and strengthening the country’s financial framework.

Areas of Improvement Addressed Through Key Reforms

The upgrade comes after the CFATF assessed the effectiveness of the Turks and Caicos Islands’ AML/CFT measures following its 2020 mutual evaluation report. In response, the government implemented key reforms aimed at:

• Addressing technical compliance deficiencies: The government took steps to rectify identified weaknesses in its AML/CFT framework.
• Enhancing regulation and supervision: Measures were put in place to improve oversight and ensure that financial institutions are operating in a compliant manner.

Notable Progress Made by the Turks and Caicos Islands

According to the latest report from the CFATF, the country has made significant progress in strengthening its AML/CFT framework. Specifically:

• Re-rated as “largely compliant” on Recommendation 13: The country has improved its compliance with regards to correspondent banking services.
• Rated as “compliant” on Recommendation 28: The government has demonstrated a commitment to regulating and supervising designated non-financial businesses and professions (DNFBPs).

Commitment to Implementing FATF Recommendations

The upgrade reflects the government’s dedication to implementing FATF Recommendations that have changed since the 2020 mutual evaluation. The report notes that the Turks and Caicos Islands has taken steps to address these changes, including adopting new measures aimed at enhancing its AML/CFT framework.

Promoting Financial Inclusion and Combating Money Laundering

With this latest development, the Turks and Caicos Islands is now rated as “Compliant or Largely Compliant” with 37 out of the 40 FATF Recommendations. The CFATF’s decision underscores the country’s progress in promoting financial inclusion and combating money laundering and terrorist financing.