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Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Turks and Caicos Islands (TCI) is a United Kingdom (UK)
overseas territory with a population of approximately 36,000. The
economy depends greatly on tourism and its offshore financial
sector. Financial services contributed almost 30 percent of GDP.
The TCI is vulnerable to money laundering due to its significant
offshore financial services sector and notable deficiencies in its
anti-money laundering/counter-terrorist financing (AML/CFT)
regime. The country’s geographic location has made it a
transshipment point for narcotics traffickers.
The TCI’s well developed financial sector is comprised, as of
October 2010, of nine banks; seven money remitters, 18
professional trustees, six securities firms, and 4,972 insurance
companies. As of March 2010, 706 “exempt companies” or
International Business Companies (IBCs) were of record with the
Companies Registry. Trust legislation allows establishment of
asset protection trusts insulating assets from civil adjudication by
foreign governments; however, the Superintendent of Trustees
has investigative powers and may assist overseas regulators. As
such, TCI remains something of a tax haven for foreign criminals
seeking to evade domestic tax reporting requirements. The
country also has two legal casinos.
The Financial Services Commission (FSC) licenses and
supervises banks, money transmitters, mutual funds and funds
administrators, investment dealers, trust companies, insurance
companies and agents, company service providers and
designated non-financial businesses. It also licenses IBCs and
acts as the Company Registry for the TCI.
In August 2009, the UK government suspended the authority of
the TCI government after serious allegations of corruption, and
TCI is now ruled directly by the UK government through the
Governor.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, credit card services, company managers,
domestic insurance companies, insurance brokers/agents,
investment dealers, money transmitters, mutual funds,
professional trustees, dealers in high value goods, dealers in
precious metals and stones, estate agents, casinos, accountants,
auditors, and lawyers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit card services, company managers,
domestic insurance companies, insurance brokers/agents,
investment dealers, money transmitters, mutual funds,
professional trustees, dealers in high value goods, dealers in
precious metals and stones, estate agents, casinos, accountants,
auditors, and lawyers
Number of STRs received and time frame: 58 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Three in 2010
Convictions: Two in 2010
Assets forfeited: criminally: 0 civilly: 0
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
TCI is a member of the Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation cannot be found on the
CFATF website. Its most recent mutual evaluation report can be
found at: http://www.cfatf-gafic.
org/downloadables/mer/Turks_and_Caicos_Islands_3rd_Round_M
ER_%28Final%29_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
No formal exchange mechanism exists between the U.S. and TCI,
although TCI cooperates readily with foreign governments. TCI is
subject to the US/UK Extradition Treaty.
The Proceeds of Crime (Amendment) Ordinance, 2010 came into
force on May 24, 2010. The Ordinance improves record keeping
and STR reporting, and strengthens due diligence requirements.
However, deficiencies remain, including weaknesses in:
determining beneficial ownership of legal persons or legal
arrangements; cross-border currency controls; and effective
dissemination of designated terrorists lists. The Counter-
Terrorism (Terrorist Financing, Money Laundering and Certain
Other Activities: Financial Restrictions) (Turks and Caicos Islands)
Order, 2010 came into force on March 18, 2010. This Order was
extended to the Turks and Caicos Islands by the United Kingdom
and, among other things, improves STR reporting for suspected
terrorist financing activity and enhances the regulatory regime.
The Financial Services ((Financial Penalties) Regulations, 2010
have been signed and published and took effect on October 29,
2010. A new AML/CFT Code has been drafted and is expected to
be enacted shortly.
TCI is a United Kingdom (UK) Caribbean overseas territory and
cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for the TCI’s international affairs
and may arrange for the ratification of any convention to be
extended to the TCI. The 1988 Drug Convention was extended to
the TCI in 1995. The UN Convention against Corruption, the
International Convention for the Suppression of the Financing of
Terrorism, and the UN Convention against Transnational
Organized Crime (UNTOC) have not yet been extended to the
TCI. The UNTOC has been implemented in the Turks and Caicos
Islands by various Orders in Council which were made in the UK
and have legislative effect in the Turks and Caicos Islands.
Authorities should issue and implement the draft AML/CFT Code.
The responsibilities of
DNFBPs to report and conform to AML/CFT regulations should be
more clearly articulated, in particular for casinos. TCI should
consider implementing domestic provisions which allow for the
enforcement of foreign restraining and confiscation orders, and
the sharing of assets confiscated as a result of such cooperation.
While this occurs in practice, having a formal system in place
would ease such actions.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Turks and Caicos reportedly was a destination country for women
and girls subjected to sex trafficking. In 2010, some stakeholders
reported sex trafficking of Dominican females on the island, some
of who may be children. Stakeholders also reported some
trafficking for forced labor among the Haitian and Chinese
communities. There were no reported cases of forced labor
involving children in 2010. Island contacts reported that trafficking-
related complicity by some local government officials was a
problem. In August 2009, the UK government suspended the
territory’s self-rule amid widespread allegations of corruption.
During the reporting period, the Turks and Caicos Islands (TCI)
government initiated anti-trafficking legislation that included
measures to improve identification of and assistance for trafficking
victims. TCI authorities also made progress on a multi-agency
action plan to support the new legislation.
For full report, click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
Aug. 2009 The UK has imposed direct rule on the Turks and
Caicos Islands after an inquiry found evidence of government
corruption and incompetence.
Read More......
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Turks and Caicos Islands (TCI) is a United Kingdom (UK)
overseas territory with a population of approximately 36,000. The
economy depends greatly on tourism and its offshore financial
sector. Financial services contributed almost 30 percent of GDP.
The TCI is vulnerable to money laundering due to its significant
offshore financial services sector and notable deficiencies in its
anti-money laundering/counter-terrorist financing (AML/CFT)
regime. The country’s geographic location has made it a
transshipment point for narcotics traffickers.
The TCI’s well developed financial sector is comprised, as of
October 2010, of nine banks; seven money remitters, 18
professional trustees, six securities firms, and 4,972 insurance
companies. As of March 2010, 706 “exempt companies” or
International Business Companies (IBCs) were of record with the
Companies Registry. Trust legislation allows establishment of
asset protection trusts insulating assets from civil adjudication by
foreign governments; however, the Superintendent of Trustees
has investigative powers and may assist overseas regulators. As
such, TCI remains something of a tax haven for foreign criminals
seeking to evade domestic tax reporting requirements. The
country also has two legal casinos.
The Financial Services Commission (FSC) licenses and
supervises banks, money transmitters, mutual funds and funds
administrators, investment dealers, trust companies, insurance
companies and agents, company service providers and
designated non-financial businesses. It also licenses IBCs and
acts as the Company Registry for the TCI.
In August 2009, the UK government suspended the authority of
the TCI government after serious allegations of corruption, and
TCI is now ruled directly by the UK government through the
Governor.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, credit card services, company managers,
domestic insurance companies, insurance brokers/agents,
investment dealers, money transmitters, mutual funds,
professional trustees, dealers in high value goods, dealers in
precious metals and stones, estate agents, casinos, accountants,
auditors, and lawyers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit card services, company managers,
domestic insurance companies, insurance brokers/agents,
investment dealers, money transmitters, mutual funds,
professional trustees, dealers in high value goods, dealers in
precious metals and stones, estate agents, casinos, accountants,
auditors, and lawyers
Number of STRs received and time frame: 58 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Three in 2010
Convictions: Two in 2010
Assets forfeited: criminally: 0 civilly: 0
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
TCI is a member of the Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation cannot be found on the
CFATF website. Its most recent mutual evaluation report can be
found at: http://www.cfatf-gafic.
org/downloadables/mer/Turks_and_Caicos_Islands_3rd_Round_M
ER_%28Final%29_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
No formal exchange mechanism exists between the U.S. and TCI,
although TCI cooperates readily with foreign governments. TCI is
subject to the US/UK Extradition Treaty.
The Proceeds of Crime (Amendment) Ordinance, 2010 came into
force on May 24, 2010. The Ordinance improves record keeping
and STR reporting, and strengthens due diligence requirements.
However, deficiencies remain, including weaknesses in:
determining beneficial ownership of legal persons or legal
arrangements; cross-border currency controls; and effective
dissemination of designated terrorists lists. The Counter-
Terrorism (Terrorist Financing, Money Laundering and Certain
Other Activities: Financial Restrictions) (Turks and Caicos Islands)
Order, 2010 came into force on March 18, 2010. This Order was
extended to the Turks and Caicos Islands by the United Kingdom
and, among other things, improves STR reporting for suspected
terrorist financing activity and enhances the regulatory regime.
The Financial Services ((Financial Penalties) Regulations, 2010
have been signed and published and took effect on October 29,
2010. A new AML/CFT Code has been drafted and is expected to
be enacted shortly.
TCI is a United Kingdom (UK) Caribbean overseas territory and
cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for the TCI’s international affairs
and may arrange for the ratification of any convention to be
extended to the TCI. The 1988 Drug Convention was extended to
the TCI in 1995. The UN Convention against Corruption, the
International Convention for the Suppression of the Financing of
Terrorism, and the UN Convention against Transnational
Organized Crime (UNTOC) have not yet been extended to the
TCI. The UNTOC has been implemented in the Turks and Caicos
Islands by various Orders in Council which were made in the UK
and have legislative effect in the Turks and Caicos Islands.
Authorities should issue and implement the draft AML/CFT Code.
The responsibilities of
DNFBPs to report and conform to AML/CFT regulations should be
more clearly articulated, in particular for casinos. TCI should
consider implementing domestic provisions which allow for the
enforcement of foreign restraining and confiscation orders, and
the sharing of assets confiscated as a result of such cooperation.
While this occurs in practice, having a formal system in place
would ease such actions.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Turks and Caicos reportedly was a destination country for women
and girls subjected to sex trafficking. In 2010, some stakeholders
reported sex trafficking of Dominican females on the island, some
of who may be children. Stakeholders also reported some
trafficking for forced labor among the Haitian and Chinese
communities. There were no reported cases of forced labor
involving children in 2010. Island contacts reported that trafficking-
related complicity by some local government officials was a
problem. In August 2009, the UK government suspended the
territory’s self-rule amid widespread allegations of corruption.
During the reporting period, the Turks and Caicos Islands (TCI)
government initiated anti-trafficking legislation that included
measures to improve identification of and assistance for trafficking
victims. TCI authorities also made progress on a multi-agency
action plan to support the new legislation.
For full report, click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
Aug. 2009 The UK has imposed direct rule on the Turks and
Caicos Islands after an inquiry found evidence of government
corruption and incompetence.
Read More......
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| TURKS & CAICOS |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |