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Turks and Caicos Islands Makes Significant Progress in Combating Terrorist Financing through Financial Institutions

PORT OF SPAIN, TRINIDAD AND TOBAGO - The Turks and Caicos Islands has made significant progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework. This boost to its efforts is a major step towards combating terrorist financing and money laundering.

Key Areas of Improvement

According to the Caribbean Financial Action Task Force (CFATF), Turks and Caicos Islands has made significant improvements in several key areas, including:

  • Strengthening customer due diligence for non-profit organizations: The country has implemented measures to ensure that financial institutions conduct thorough checks on non-profit organizations.
  • Improving regulations and supervision of financial institutions: Turks and Caicos Islands has enhanced its regulatory framework to ensure that financial institutions are operating in compliance with AML/CFT standards.
  • Enhancing guidance and feedback mechanisms for financial institutions: The country has developed guidelines and feedback mechanisms to help financial institutions understand and implement AML/CFT requirements.
  • Increasing international cooperation to combat money laundering and terrorist financing: Turks and Caicos Islands is working closely with other countries to share information and best practices in combating money laundering and terrorist financing.

CFATF Praises Progress

The CFATF has praised Turks and Caicos Islands for its efforts to implement new measures since its 2017 mutual evaluation, including the establishment of a national anti-money laundering authority and the development of guidelines for financial institutions.

“This progress is a testament to the commitment of the Turks and Caicos Islands government to combating terrorist financing and money laundering,” said a CFATF spokesperson. “We are pleased to see the country taking concrete steps to strengthen its AML/CFT framework and we look forward to continuing our cooperation with them in this area.”

Recommendations Re-Rated

Following the report, the CFATF has re-rated Turks and Caicos Islands on 14 of the 40 FATF Recommendations, including:

Recommendation 8: Non-profit organizations

  • From: Partially compliant to Largely compliant

Recommendation 10: Customer due diligence

  • From: Partially compliant to Compliant

Recommendation 14: Money Value Transfer Services

  • From: Partially compliant to Compliant

Recommendation 16: Wire Transfers

  • From: Partially compliant to Largely compliant

Recommendation 15: New Technologies

  • From: Partially compliant to Non-compliant

Recommendation 17: Reliance on third parties

  • From: Partially compliant to Compliant

Recommendation 19: Higher-risk countries

  • From: Partially compliant to Compliant

Recommendation 22: Designated Non-Financial Businesses and Professions (DNFBPs): Customer Due Diligence

  • From: Partially compliant to Largely compliant

Recommendation 23: DNFBPs: Other Measures

  • From: Partially compliant to Compliant

Recommendation 26: Regulation and Supervision of Financial Institutions

  • From: Partially compliant to Largely compliant

Recommendation 34: Guidance and Feedback

  • From: Partially compliant to Largely compliant

Recommendation 40: Other Forms of International Cooperation

  • From: Partially compliant to Compliant

The CFATF also maintained a “largely compliant” rating for Recommendation 2: National co-operation and coordination, and a “compliant” rating for Recommendation 18: Internal Controls and foreign branches and subsidiaries.