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Turks and Caicos Islands Makes Progress in Anti-Money Laundering and Combating the Financing of Terrorism

The Caribbean Financial Action Task Force (CFATF) has released a report evaluating the assessment of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework of Turks and Caicos Islands. The report highlights several key findings related to customer due diligence, enhanced due diligence, and reporting obligations.

Customer Due Diligence (CDD)

• The islands have addressed deficiencies in CDD through amendments to the AML/CFT framework.
• Financial Institutions (FIs) must review existing customers’ CDD based on materiality and risk, considering when CDD measures were completed and the adequacy of data obtained from previous procedures.

Enhanced Due Diligence (EDD)

• No deficiencies cited in the report, but FIs are required to apply EDD measures for specific situations or circumstances presenting a higher risk of money laundering/terrorist financing.

Simplified CDD Measures

• There are no provisions allowing FIs to apply simplified CDD measures.

Recommendation 14: Money Transmitters

The islands have addressed deficiencies through the Money Transmitters (Amendment) Ordinance 2021, which broadens the definition of money transmission and includes payment in other forms. It is an offense to carry on a money services business without a license, with penalties including fines and imprisonment.

Key Progress Made by Turks and Caicos Islands

The report indicates that Turks and Caicos Islands has made significant progress in addressing AML/CFT deficiencies and now meets several criteria related to CDD, EDD, and Money Transmitters. This is a positive development for the islands and demonstrates their commitment to combating money laundering and terrorist financing.