Financial Crime World

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Turks and Caicos Islands Fails to Meet International Anti-Money Laundering Standards

A recent evaluation by the Financial Action Task Force (FATF) has revealed that the Turks and Caicos Islands is falling short of meeting international anti-money laundering standards.

Evaluation Findings

According to the report, the island nation has failed to fully implement key recommendations aimed at preventing money laundering and terrorist financing. The evaluation team, which visited the country from September 10th-21st, 2018, found significant gaps in the Turks and Caicos Islands’ anti-money laundering/counter-terrorist financing (AML/CFT) system.

Areas for Improvement

The report highlights a number of areas where improvements are needed, including:

  • Strengthening Customer Due Diligence Requirements: Enhance customer due diligence requirements for financial institutions to prevent money laundering and terrorist financing.
  • Improving National Supervisory Body Effectiveness: Improve the effectiveness of the national supervisory body to ensure that AML/CFT regulations are enforced consistently.
  • Increasing International Cooperation: Increase international cooperation to prevent the flow of illicit funds and bring the Turks and Caicos Islands into compliance with international standards.

FATF Endorsement

The FATF has endorsed the findings of the evaluation, which were prepared using the 2013 Methodology and based on information provided by the country. The report notes that while progress has been made in some areas, more needs to be done to bring the Turks and Caicos Islands into compliance with international standards.

Recommendations for Improvement

To address the gaps identified by the evaluation team, the Turks and Caicos Islands will need to take a number of steps to strengthen its AML/CFT system. These include:

  • Enhancing customer due diligence requirements for financial institutions
  • Improving the effectiveness of the national supervisory body
  • Increasing international cooperation to prevent the flow of illicit funds

By implementing these recommendations, the Turks and Caicos Islands can bring its AML/CFT system into line with international standards and reduce the risk of money laundering and terrorist financing on the island.

Full Report Available Online

The full report is available online, highlighting key findings and priority actions for the country to take to strengthen its AML/CFT system.