Turks and Caicos Islands’ Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Framework

The Caribbean Financial Action Task Force (CFATF) published a Fourth Round Mutual Evaluation Report on Turks and Caicos Islands, assessing the country’s AML/CFT framework. Here are key points related to specific criteria:

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)

Criteria 10

• The report indicates that Turks and Caicos Islands has addressed deficiencies in its CDD requirements.
• Financial Institutions (FIs) are now required to review existing customers’ CDD based on materiality and risks.
• EDD measures are applied for specific situations and higher risk circumstances.

Deficiencies and Recommendations

Criteria 10.20

• Although the criterion was rated as “met,” a deficiency was noted regarding the AML Code’s Paragraph 32A, which allows FIs not to pursue CDD if the Money Laundering Reporting Officer (MLRO) suspects money laundering/terrorism financing.
• In such cases, a suspicious activity report is required.

Recommendation 14

• This recommendation addresses the lack of proactive measures to identify natural or legal persons carrying out Money Value Transfer Services (MVTS) business without a license and limitations in the scope of activities regulated under the Money Transmitters Ordinance.
• The report indicates that amendments have been made to define money transmission more broadly, and it is an offense to carry on MVTS without a license.

Weighting and Conclusion

• Based on the assessments, Turks and Caicos Islands is re-rated as Compliant with R.10 and is considered Compliant with Recommendation 14 after addressing technical deficiencies.