Turks & Caicos

Sanctions

No

FATF AML Deficient List

No

Higher Risk

Compliance with FATF 40 + 9 Recommendations
Not on EU White list equivalent jurisdictions
Offshore Finance Centre

Medium Risk

US Dept of State Money Laundering assessment 
Weakness in Government Legislation to combat Money Laundering
Corruption Index (Transparency International & W.G.I.)
World Governance Indicators (Average Score)
Failed States Index (Political Issues)(Average Score)

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ANTI-MONEY LAUNDERING

FATF Status

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 The Turks and Caicos Islands was undertaken by the Financial Action Task Force (FATF) in 2009. According to that Evaluation, The Turks and Caicos Islands was deemed Compliant for 6 and Largely Compliant for 10 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

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.

SANCTIONS

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.

ECONOMY

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

 

Industries:

tourism, offshore financial services

 

Exports - commodities:

lobster, dried and fresh conch, conch shells

 

Imports - commodities:

food and beverages, tobacco, clothing, manufactures, construction materials

 

Country Links

Financial Intelligence Agency of the Turks and Caicos Islands (FCU)​
Financial Services Commission
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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