Financial Crime World

Turks and Caicos Islands Makes Strides in Combating Financial Crime

The Turks and Caicos Islands has made significant progress in strengthening its framework to tackle money laundering and terrorist financing, leading to an upgrade by the Caribbean Financial Action Task Force (CFATF). This development is a major achievement for the country, particularly considering the ongoing challenges faced by the banking sector.

Progress Made in Correspondent Banking Recommendation 13

The CFATF has upgraded the island nation’s rating from “partially compliant” to “largely compliant” on Correspondent Banking Recommendation 13. This recommendation deals with ensuring that correspondent banking relationships are subject to adequate risk management and supervision. The progress made by the Turks and Caicos Islands was assessed through its mutual evaluation report, which evaluated the effectiveness of the country’s anti-money laundering and counter-terrorist financing (AML/CFT) measures.

Regulation and Supervision of Designated Non-Financial Businesses and Professions

In addition to the upgrade on Correspondent Banking Recommendation 13, the country has also been rated as “compliant” on Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs) Recommendation 28. This recommendation requires countries to regulate and supervise DNFBPs in a manner that is consistent with international standards.

Key Achievements

  • The Turks and Caicos Islands has been rated as Compliant or Largely Compliant with 37 out of the 40 FATF Recommendations.
  • The country’s efforts to strengthen its AML/CFT framework have been welcomed by the CFATF, which has acknowledged the island nation’s commitment to combating financial crime.

Impact on International Reputation and Foreign Investment

The re-rating of the Turks and Caicos Islands is expected to have a positive impact on the country’s international reputation and its ability to attract foreign investment. The upgrade is seen as a significant achievement for the country, particularly considering the ongoing challenges faced by the banking sector in combating financial crime.