Financial Crime World

Turks and Caicos Islands’ Compliance with International Standards for Exchange of Information

Peer Review Report Summary

The Turks and Caicos Islands’ compliance with international standards for the exchange of information (EOIR) as part of the Common Reporting Standard (CRS) has been evaluated in a Peer Review Report. The report highlights several areas where improvement is needed to meet the required standards.

Ownership and Identity Information

  • Limited Partnerships: There are no requirements under AML/CFT laws to verify the identity of limited partners in partnerships that do not file for business licenses or engage licensed service providers.
  • Beneficial Ownership Information: Beneficial ownership information may not identify all beneficial owners due to the lack of verification requirements.

Accounting Requirements

  • Legal Framework: The legal framework is in place, but the existing system of monitoring accounting records is not fully in place and does not cover all relevant entities and arrangements.
  • Monitoring and Sanctions: There is no imposition of sanctions on entities that fail to comply with AML obligations.

Banking Information and Beneficial Ownership

  • Risk-Based Supervision Approach: The Financial Services Commission has recently formalized a new risk-based supervision approach for banks, but its effective application requires more time.
  • Sanctions for Serious Breaches: There is no imposition of sanctions on entities that fail to comply with AML obligations.

Recommendations

Based on the findings of the Peer Review Report, the following recommendations are made:

  • Ensure information on all beneficial owners of partnerships is available.
  • Monitor the application of its supervision program for CSPs, lawyers, and accountants to ensure effective sanctions are applied in cases of serious breaches with AML obligations.
  • Implement an effective system of oversight and enforcement to support legal requirements ensuring accounting information availability for entities and arrangements.
  • Ensure that banking information and beneficial ownership information are available for all account-holders through its risk-based supervision approach.