Turks & Caicos
The Turks and Caicos Islands is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Turks & Caicos was undertaken in 2019. According to that Evaluation, Turks & Caicos was deemed Compliant for 15 and Largely Compliant for 9 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.
US Department of State Money Laundering assessment (INCSR)
The Turks and Caicos Islands was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -
The Turks and Caicos Islands is a British Overseas Territory. The economy depends greatly on tourism and the well-developed financial sector. The Turks and Caicos Islands is vulnerable to money laundering due to its significant offshore financial services sector and deficiencies in its AML/CFT regime. Corruption is a problem, and the country’s geographic location makes it a transshipment point for narcotics traffickers. The former Premier of Turks and Caicos and several members of his cabinet are currently on trial for corruption and money laundering. According to press reports, the former Premier and ministers allegedly misappropriated over $20 million between 2003 and 2009.
According to the Turks and Caicos Financial Services Commission’s (TCIFSC) website, there are six licensed banks, four licensed money transmitters, 10 licensed trust companies, six international insurance managers, and 18 domestic insurance companies. As of March 2015, there were 6,217 international insurance companies; and at the end of 2011, 9,871 “exempt companies,” or IBCs, were included in the Companies Registry. There are two casinos. Trust legislation allows for asset protection trusts insulating assets from civil adjudication by foreign governments; therefore, Turks and Caicos Islands remains a tax haven for those seeking to evade domestic tax reporting requirements. The Superintendent of Trustees has investigative powers and has the authority to assist overseas regulators.
The TCIFSC, an independent statutory body, is tasked with supervising the financial services sector, including the offshore sector, and is responsible for the oversight of company formation and registration. The TCIFSC licenses and supervises banks, money transmitters, mutual funds and funds administrators, investment dealers, trust companies, insurance companies and agents, company service providers, international business companies (IBCs), and designated non- financial businesses.
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index N/A
World Governance Indicator – Control of Corruption 59
In August 2009, the UK imposed direct rule on the Turks and Caicos Islands after an inquiry found evidence of government corruption and incompetence. The territorial government was restored under a new Constitution after a general election in November 2012.
The Turks and Caicos economy is based on tourism, offshore financial services, and fishing. Most capital goods and food for domestic consumption are imported. The US is the leading source of tourists, accounting for more than three-quarters of the more than 1 million visitors that arrived in 2013. Three-quarters of the visitors came by ship. Major sources of government revenue also include fees from offshore financial activities and customs receipts.
Agriculture - products:
corn, beans, cassava (manioc, tapioca), citrus fruits; fish
tourism, offshore financial services
Exports - commodities:
lobster, dried and fresh conch, conch shells
Imports - commodities:
food and beverages, tobacco, clothing, manufactures, construction materials
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