Turks and Caicos Islands Fall Short on Anti-Money Laundering Regulations

Evaluation Reveals Significant Weaknesses in AML/CTF System

A recent evaluation by the Financial Action Task Force (FATF) has found that the Turks and Caicos Islands are not fully compliant with international standards on anti-money laundering (AML) regulations. The islands’ AML/counter-terrorist financing system is still in need of strengthening, according to a report released last week.

Key Findings of the Evaluation

• The evaluation team, which visited the country from September 10th - 21st, 2018, found that while some progress has been made, significant improvements are required to meet the FATF’s 40 Recommendations.
• The Turks and Caicos Islands’ AML/CFT measures are based on the 2012 FATF Recommendations and were prepared using the 2013 Methodology.
• Despite efforts to comply with international standards, the islands’ system still falls short in several key areas.

Recommendations for Improvement

The report recommends a range of priority actions, including:

• Enhancements to customer due diligence requirements
• Improvements to reporting obligations
• Increased cooperation between financial institutions and law enforcement agencies

Consequences of Non-Compliance

The failure to meet international standards on AML regulations is a major concern for the Turks and Caicos Islands, with potential consequences for the country’s reputation as a financial hub. The government has been urged to take swift action to address these weaknesses and bring their AML/CFT system in line with global best practices.