Mutual Evaluation Report on Turks and Caicos Islands: Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Compliance

The Caribbean Financial Action Task Force (CFATF) has published a Mutual Evaluation Report (MER) assessing the compliance of the Turks and Caicos Islands with various AML/CFT requirements. The report highlights significant progress made by the islands in addressing deficiencies and achieving full compliance.

Addressing Deficiencies

The report identifies two key areas where deficiencies have been addressed:

Criterion 10: Customer Due Diligence (CDD)

• Amendments to the Anti-Money Laundering/Prevention of Terrorism Financing (AML/PTF) Code and Regulations have resolved existing issues.
• Regulation 11(c) now requires Financial Institutions (FIs) to review CDD on existing customers based on materiality and risks.
• FIs must apply Enhanced Due Diligence (EDD) measures for specific listed situations and higher-risk circumstances.

Criterion 14: Money Service Businesses (MSBs)

• The Money Transmitters (Amendment) Ordinance 2021 broadens the definition of money transmission, making it an offense to carry out MSB activities without a license.
• Penalties for unlicensed MSBs include fines and imprisonment.
• The Financial Services Commission has powers to identify and investigate persons carrying out unlicensed MSBs.

Conclusion

The Turks and Caicos Islands have successfully addressed all deficiencies via amendments to the AML/PTF Code and Regulations. As a result, they are re-rated as Compliant with R.10. This achievement demonstrates significant progress in addressing AML/CFT deficiencies and achieving full compliance with relevant requirements.