Turks and Caicos Anti-Money Laundering Progress

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

A New Era of Compliance for the Turks and Caicos Islands

After being placed under scrutiny by the Caribbean Financial Action Task Force (CFATF) last year, the Turks and Caicos Islands has made substantial progress in strengthening its anti-money laundering and counter-terrorist financing framework. This achievement is a welcome boost to the country’s reputation, with the CFATF re-rating it on two key recommendations.

Background: The CFATF Mutual Evaluation Report

In 2020, the CFATF adopted a mutual evaluation report that assessed the effectiveness of the Turks and Caicos Islands’ anti-money laundering measures and their compliance with the Financial Action Task Force (FATF) Recommendations. The report identified technical compliance deficiencies in several areas, including correspondent banking and regulation and supervision of designated non-financial businesses and professions (DNFBPs).

Progress Made by the Turks and Caicos Islands

The Turks and Caicos Islands has reported back to the CFATF on the progress it has made in addressing these technical compliance deficiencies. The report highlights significant improvements in two key areas:

Correspondent Banking: The country has upgraded its rating from partially compliant to largely compliant on Recommendation 13, which pertains to correspondent banking.
Regulation and Supervision of DNFBPs: The Turks and Caicos Islands has elevated its status from partially compliant to fully compliant on Recommendation 28, relating to regulation and supervision of DNFBPs.

Improved Overall Rating with the FATF Recommendations

The improvements made by the Turks and Caicos Islands have contributed to a notable increase in its overall rating with the FATF Recommendations. The country is now rated as Compliant or Largely Compliant with an impressive 37 out of the 40 recommendations.

Significance of this Achievement

This achievement is significant for countries like the Turks and Caics Islands that rely heavily on financial services to drive economic growth. A robust anti-money laundering framework not only enhances national security but also fosters a more stable business environment, encouraging investment and promoting economic development.