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Turks and Caicos Islands Improves Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Compliance

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The Mutual Evaluation Report (MER) of Turks and Caicos Islands has highlighted significant improvements in addressing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) deficiencies. The report evaluates the country’s compliance with various AML/CFT standards.

Key Findings

Addressing Deficiencies

  • Turks and Caicos Islands has addressed all deficiencies via amendments to the AML/PTF Code and Regulations.
  • The country is re-rated Compliant with Recommendation 10 (R.10).
  • Recommendation 14 (R.14) has been addressed through amendments to the Money Transmitters Ordinance.

Key Changes and Improvements

  • The country has re-defined the term “legal entity” to capture a larger body of legal structure types.
  • This change ensures that more entities are covered under AML/CFT regulations, thereby strengthening the overall framework.

CDD Provisions for Trusts

  • The CDD (Customer Due Diligence) provisions now apply to trusts, thus remedying previously existing deficiencies.
  • This improvement enhances the effectiveness of AML/CFT measures in identifying and mitigating potential risks associated with trust structures.

Money Transmitters Ordinance (MTO)

  • The MTO has been amended to define money transmission more broadly and include the payment of a corresponding sum in any other form.
  • This change clarifies the scope of money transmission and ensures that all relevant transactions are captured under AML/CFT regulations.

Conclusion

Turks and Caicos Islands has made significant improvements in addressing AML/CFT deficiencies, resulting in a re-rating as Compliant with R.10 and addressing technical deficiencies for R.14. These enhancements demonstrate the country’s commitment to strengthening its AML/CFT framework and mitigating potential risks associated with money laundering and terrorist financing activities.