Financial Crime World

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Anti-Money Laundering Framework in Turks and Caicos Islands

The Turks and Caicos Islands (TCI) have a robust legal and institutional framework for combating anti-money laundering (AML) and financing terrorism (CFT). This framework is governed by various laws, regulations, and institutions that work together to prevent and detect illicit financial activities.

Government Structure

Executive Council

  • The TCI has a governor, 6 ministers, and 2 ex officio members in its executive council.
  • The chief minister also serves as the minister of finance, development, and commerce.

Overview

  • The TCI legal system is based on the English model with a written constitution that protects fundamental rights and freedoms.
  • Most laws derive from ordinances passed by the legislative council or extended from the United Kingdom.

Court System

Structure

  • The court system consists of:
    • Magistrate’s court
    • Supreme court
    • Court of appeal (sitting in TCI)
    • Privy Council in London as the final appellate body
  • The legal profession is represented by a statutorily constituted bar association.

Financial Supervision

Financial Services Commission

  • The Financial Services Commission (FSC) was established in 2002 to supervise financial institutions in TCI.
  • The FSC has a board of directors composed of 7-9 persons, including the permanent secretary, finance, and the managing director of the FSC as ex officio members.

Anti-Money Laundering

Regulations

  • The Proceeds of Crime Money Laundering Regulations (PCMLR) were adopted in 1999 to create a sound legal basis for the AML/CFT regime.
  • Key requirements include:
    • Customer identification and record-keeping
    • Internal reporting and employee training

Guidance Notes

  • The FSC and the Monetary Laundering Reporting Authority (MLRA) issue non-binding guidance notes on AML.

Financial Intelligence Unit

Current Setup

  • There is no centralized financial intelligence agency in TCI, so the financial crimes unit of the police deals with suspicious transaction reports (STRs) and investigates money laundering offenses.
  • The MLRA is not an operational body and does not meet the requirements of the Egmont Group to qualify as a Financial Intelligence Unit (FIU).

Criminalization of Money Laundering

Statutory Provisions

  • Several statutory provisions criminalize money laundering, but there are limited provisions for confiscation or forfeiture of proceeds of crime.
  • An amendment to the PCO in 2001 enabled the recognition and enforcement by TCI of overseas confiscation orders made in designated countries or territories.

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