Turks and Caicos Islands Makes Significant Progress in Anti-Money Laundering Efforts

Enhanced Rating Reflects Government’s Commitment to Strengthen AML/CFT Framework

The Caribbean Financial Action Task Force (CFATF) has upgraded the Turks and Caicos Islands’ rating on two key recommendations aimed at tackling money laundering and terrorist financing. This significant development comes after the country’s progress in strengthening its anti-money laundering and counter-terrorist financing framework since 2020.

Progress Made Since 2020

The CFATF mutual evaluation report, which assessed the effectiveness of the Turks and Caicos Islands’ anti-money laundering measures, identified several technical compliance deficiencies that needed to be addressed. In response, the government has reported back to the CFATF on its progress in strengthening its AML/CFT framework.

Upgrades Achieved

The CFATF has upgraded the Turks and Caicos Islands’ rating from “partially compliant” to “largely compliant” on two key recommendations:

• 13 - Correspondent Banking: This upgrade reflects the government’s efforts to strengthen its regulations and improve supervision of correspondent banking relationships.
• 28 - Regulation and Supervision of DNFBPs (Designated Non-Financial Business Professions): The enhanced rating acknowledges the country’s commitment to improving its supervisory framework for DNFBPs.

Positive Impact on Reputation

With these upgrades, the Turks and Caicos Islands is now rated as Compliant or Largely Compliant with 37 out of the 40 FATF Recommendations. The enhanced rating reflects the government’s efforts to strengthen its AML/CFT framework and meet international standards.

The CFATF report acknowledges that the Turks and Caicos Islands has made significant progress in addressing technical compliance deficiencies, including implementing new measures to regulate correspondent banking relationships and improve supervision of DNFBPs. The country’s commitment to strengthening its AML/CFT framework is seen as a major step forward in preventing money laundering and terrorist financing.

The upgraded rating is expected to have a positive impact on the Turks and Caicos Islands’ reputation as a secure and transparent financial center, attracting more businesses and investments while maintaining international cooperation in combating financial crimes.