Turks and Caicos Islands Faces Call to Action on Anti-Money Laundering Regulations

International Community Urges Improvement in AML/CFT System

The Turks and Caicos Islands has been called upon to strengthen its anti-money laundering (AML) and counter-terrorist financing (CFT) system following a recent assessment by the international community. The evaluation, conducted using the 2013 Financial Action Task Force (FATF) Methodology, highlighted several shortcomings in the country’s regulatory framework.

Key Findings of the Assessment

• The on-site visit revealed that while the Turks and Caicos Islands have made progress in implementing various AML/CFT measures, there is still much work to be done.
• The country was praised for its efforts to establish an effective AML/CFT system, but critics argue that more needs to be done to prevent money laundering and terrorist financing.

Recommendations for Improvement

The evaluation team’s findings have been endorsed by the FATF, with recommendations put forward to strengthen the islands’ AML/CFT system. Key areas of concern include:

• Improved customer due diligence: The country should implement robust customer identification and verification procedures to prevent the misuse of its financial systems.
• Enhanced risk management: The Turks and Caicos Islands should establish effective risk assessment and mitigation strategies to identify and address potential money laundering and terrorist financing risks.
• Suspicious transaction reporting: The country should improve its suspicious transaction reporting system to ensure that all relevant authorities are notified promptly of potential illicit activities.

Call to Action

In light of these findings, the Turks and Caicos Islands has been called upon to take immediate action to address the shortcomings in its AML/CFT regime. By doing so, the country can ensure that it remains a compliant member of the international community and continues to attract legitimate business and investment.