Financial Crime World

Financial Crimes on the Rise in Turks and Caicos Islands

The Turks and Caicos Islands, a British Overseas Territory in the Caribbean, has been struggling to combat financial crimes, with several types of illicit activities posing a significant threat to the country’s economy.

International Concerns

According to reports, the territory has failed to meet international standards in combating money laundering and terrorist financing. The Financial Action Task Force (FATF) has rated Turks and Caicos Islands as “partially compliant” or “non-compliant” in several areas, highlighting weaknesses in its financial regulations and supervision.

Key Concerns

  • Lack of effective measures to prevent the misuse of non-profit organizations for illicit purposes.
  • Failure to implement adequate customer due diligence requirements for financial institutions, making it easier for criminals to launder money.
  • Inadequate regulation and supervision of foreign branches and subsidiaries of financial institutions, leading to concerns that these entities may be used to facilitate illegal activities.

Transparency and Beneficial Ownership

The Turks and Caicos Islands has also been criticized for its lack of transparency in beneficial ownership of legal persons and arrangements, making it difficult to track the flow of illicit funds.

Law Enforcement and Financial Intelligence Unit

Law enforcement agencies have been accused of being inadequate in their efforts to combat financial crimes. The country’s financial intelligence unit is also deemed insufficiently resourced to effectively detect and prevent money laundering and terrorist financing.

FATF Recommendations

The FATF has identified several areas where Turks and Caicos Islands needs to improve its compliance with international standards, including:

  • More effective measures to prevent cash couriers from being used to smuggle illegal funds.

Authorities’ Response

The territory’s authorities have acknowledged the concerns and are working to address them. However, much remains to be done to bring Turks and Caicos Islands into line with global best practices in combating financial crimes.