Turks and Caicos Islands Takes Steps to Strengthen Fight Against Money Laundering and Terrorist Financing

Enhancing Anti-Money Laundering and Counter-Terrorist Financing Framework

The Turks and Caicos Islands has made significant progress in addressing technical compliance deficiencies identified in a recent mutual evaluation by the Caribbean Financial Action Task Force (CFATF). This move aims to enhance its anti-money laundering and counter-terrorist financing framework, aligning with international standards and best practices.

Progress Made on Key Recommendations

According to the CFATF report, the islands have strengthened their measures on 14 out of 40 recommendations, moving from partially compliant to largely or fully compliant. The improvements were made in response to the CFATF’s enhanced follow-up process, which assessed the effectiveness of Turks and Caicos Islands’ anti-money laundering and counter-terrorist financing measures.

Key Areas of Progress

• Customer Due Diligence: From partially compliant to compliant (Recommendation 10)
• Money Value Transfer Services: From partially compliant to compliant (Recommendation 14)
• Wire Transfers: From partially compliant to largely compliant (Recommendation 16)
• Reliance on Third Parties: From partially compliant to compliant (Recommendation 17)
• Higher-Risk Countries: From partially compliant to compliant (Recommendation 19)

Other Areas of Progress

• Recommendation 8: Non-profit organisations - from partially compliant to largely compliant
• Recommendation 22: Designated Non-Financial Businesses and Professions (DNFBPs): Customer Due Diligence - from partially compliant to largely compliant
• Recommendation 26: Regulation and Supervision of Financial Institutions - from partially compliant to largely compliant
• Recommendation 34: Guidance and Feedback - from partially compliant to largely compliant
• Recommendation 40: Other Forms of International Co-operation - from partially compliant to compliant

CFATF Ratings

The CFATF has also maintained the largely compliant rating for Recommendation 2 (National co-operation and co-ordination) and the compliant rating for Recommendation 18 (Internal Controls and foreign branches and subsidiaries).

Conclusion

These improvements demonstrate Turks and Caicos Islands’ commitment to strengthening its anti-money laundering and counter-terrorist financing framework, ensuring that it meets international standards and best practices.