Mutual Evaluation Report (MER) of Turks and Caicos Islands

==============================================

Overview

The Mutual Evaluation Report (MER) assesses the compliance of Turks and Caicos Islands with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) requirements.

Key Findings

Customer Due Diligence (CDD)

• The country has addressed deficiencies in its AML/PTF Code, specifically:
  • Criteria 10.16: Amendments to Regulation 11(c) require Financial Institutions (FIs) to review CDD on existing customers based on materiality and risks.
  • Criteria 10.17: FIs are required to apply Enhanced Due Diligence (EDD) measures for specific situations, such as higher-risk customers or transactions.

Simplified Customer Due Diligence

• There are no provisions that allow FIs to apply simplified CDD measures, which is consistent with international standards.

Risk-based Approach

• The country has implemented a risk-based approach to CDD, ensuring that failures to satisfactorily complete CDD do not establish the business relationship or terminate it without considering making a Suspicious Transaction Report (STR).

Suspicious Activity Reporting

• Although the criterion was rated as met, a deficiency was cited in the Summary of TC deficiencies table. The AML Code requires FIs to make a suspicious activity report when there is a suspicion of money laundering/terrorist financing.

Money Transmitters

• Technical deficiencies have been addressed by amending Section 2 of the Money Transmitters Ordinance to define money transmission more broadly, making Recommendation 14 Partially Compliant.

Conclusion

Turks and Caicos Islands has successfully addressed all deficiencies via amendments to the AML/PTF Code and Regulations. As a result, the country is re-rated as Compliant with Recommendation 10.