The Turks and Caicos has released its first Money Laundering and Terrorist Financings National Risk Assessment in line with the Financial Action Task Force (FATF) recommendations against which each country assesses its own money laundering and terrorist financing risks.

The TCI National Risk Assessment aims at creating a comprehensive and evidence-based understanding of the money laundering and terrorist financing risks faced by the jurisdiction.  The initial phase commenced in October 2014, with a workshop which identified the approach to gathering supporting data.

Around fifty stakeholders and representatives from both the public and private sectors will convened for a three-day workshop with a closed half day workshop for policy makers in June 2017.  That workshop facilitated the making of a comprehensive action plan to allow for a consistent approach to decrease the levels of risks, and strengthen controls and supervisory oversight in each sector. The Cabinet approved the National Risk Assessment Report in August 2017.  The National Risk Assessment is a tool used by private and public sector stakeholders to understand he national risks to the financial sector and implement effective measures to combat those risks.

Announcing the release of the National Risk Assessment, chair of the national Anti-Money Laundering Committee, the Attorney General Hon. Rhondalee Braithwaite Knowles OBE said: “This is a major initiative here in the Turks and Caicos Islands which will enable us to develop an effective framework to prevent money laundering and combat terrorist financing.”

The Hon. Attorney General also extended special thanks and acknowledgement is given to World Bank experts Ms Lisa Bostwick, Mr Roberto Biel, Mrs Emily Adeleke, Ms Francisca Fernando and Mrs. Kathleen Peters who have led the various workshop sessions.

For more information on the National Risk Assessment, please contact the TCI Attorney General Chambers at: This email address is being protected from spambots. You need JavaScript enabled to view it. or the Compliance Unit at the Turks and Caicos Financial Services Commission at: This email address is being protected from spambots. You need JavaScript enabled to view it. The report will be available on the Government website www.gov.tc along with the websites of the Attorney General’s Chambers www.gov.tc/agc and the Financial Services Commission www.tcifsc.tc

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Notes to Editor:

1. The FATF is an inter-governmental body established in 1989 currently comprising 36 members, with the participation of over 180 countries through a global network of FATF- style regional bodies. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating ML, TF and other related threats to the integrity of the international financial system.

2. Please refer to The FATF Recommendations 2012 and the FATF Guidance: National Money Laundering and Terrorist Financing Risk Assessment here: FATF Recommendations.

The Turks and Caicos Islands has undertaken Pre-Assessment Training in preparation for its Mutual Evaluation Assessment by the Caribbean Financial Action Task Force (CFATF) in line with the Financial Action Task Force (FATF) procedures that requires each country’s money laundering and terrorist financing risks to be assessed.  The mutual evaluations process is the mechanism used to conduct assessments. The Pre-Assessment Training is a requirement in the mutual evaluation process.

The assessment of the effectiveness of the legislative and regulatory infrastructure of the Turks and Caicos Islands’ financial sector has started by the delivery of a Technical Compliance Questionnaire which was received July 20, 2017 and to which the TCI responded on October 17, 2017.  Another desk-based assessment whereby the TCI will have to provide to CFTAF Secretariat responses on the effectiveness of the anti-money laundering and combating of terrorism framework (AML/CFT) will have to be submitted.  This will be followed by a two-week On-site evaluation by a CFATF assessment team early next year which will be followed by the publication of the Mutual Evaluation Report.

Around fifty stakeholders and representatives from both the public and private sectors convened for a three-day workshop at the Sands Resort in Providenciales on 18-20^th of October 2017.  The workshop facilitated provision of comprehensive information needed for the country to prepare for all the stages of the assessment process.

The training was divided into two sections with the first two days being geared towards the public sector and the last day for the private sector.

Announcing the completion of the Pre-Assessment Training, Chair of the lead agency, the Anti-money laundering Committee (AMLC), Attorney General Hon. Rhondalee Braithwaite Knowles OBE said: “National cooperation and coordination are the keys to a successful outcome.  This is major step in the preparation process here in the Turks and Caicos Islands which provides stakeholders with the necessary understanding of the Mutual Evaluation process, particularly the On-site visit.  It will assist the country in being prepared to receive the Assessment Team and create awareness of the demands of the process.”

The Hon. Attorney  General also expressed special thanks to CFATF Deputy Executive Director Mr. Carlos Acosta and Legal Advisor Mr. Rommel St. Hill who led the training sessions. The TCI is also very grateful to the Government of Canada that facilitated the CFATF’s attendance and conduct of this training.

For more information on the Mutual Evaluation Assessment process, please contact the TCI Attorney General’s Chamber.

Notes to Editor:

1. The FATF is an inter-governmental body established in 1989 currently comprising 36 members, with the participation of over 180 countries through a global network of FATF- style regional bodies. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating ML, TF and other related threats to the integrity of the international financial system.
2. The CFATF is the regional offshoot of the FATF, the premier inter-governmental organization that sets the standards for preventing money laundering and terrorist financing.  The CFATF plays a critical role in promoting regional compliance with the FATF Recommendations on anti-money laundering and combatting the financing of terrorism.  CFATF is responsible for monitoring and evaluating member states in an effort to achieve compliance.  
3. The TCI’s last Mutual Evaluation Assessment was conducted in 2007 with the Mutual Evaluation Report being finalized for publication in 2008.
4. The AMLC is established under the Proceeds of Crime Ordinance and comprises the Attorney General as Chair, and includes the Commissioner of Police, the Director of Public Prosecutions, the Head of the Financial Services Commissioner and the Head of the Financial Intelligence Agency as members. 

 Please refer to The FATF Recommendations

A team from the Financial Market Integrity Unit of the World Bank Group is in the Turks and Caicos Islands to assist in the completion of a National Risk Assessment on Money Laundering and Terrorist Financing.   The risk assessment process itself is organized, led and undertaken by the national Anti-Money Laundering Committee using the World Bank Group’s self-assessment methodology. The Hon. Attorney General Rhondalee Braithwaite Knowles OBE chairs the Anti-Money Laundering Committee.

The assessment aims to identify the primary money laundering and terrorist financing (ML/TF) risks in the country through a comprehensive analysis that will facilitate the making of comprehensive action plans to allow for a consistent approach to decrease the levels of risks,  and strengthen controls and supervisory oversight in each sector.  This will help allocate resources for the fight against money laundering and terrorism financing more effectively and efficiently, while meeting international standards as established by e.g., the Financial Action Task Force (FATF). 

The World Bank Group has assisted the Turks and Caicos Islands in understanding the underlying methodology and in the use of the tool. This way, the Turks and Caicos Islands will build the capacity to undertake future risk assessments with no or minimal external support. The self-assessment methodology supports collaboration between the different government agencies and private sector parties that are jointly responsible for the country’s anti-money laundering and counter terrorism financing efforts. The World Bank Group has supported over seventy (70) countries in performing their national risks assessments since 2010.

The Turks and Caicos Islands National Risk Assessment was launched during the first initial workshop which was held over the period October 21-23, 2014. This second and final workshop marks the end of the NRA project with around fifty stakeholders and representatives from both the public and private sectors from 26^th and 27^th June 2017 at the Blue Haven Resort Conference Room on Providenciales, Turks and Caicos Islands from 8am to 4:30pm daily with a half day closed policymakers’ workshop on 28^th June 2017.

Attorney General Rhondalee Braithwaite Knowles said “This exercise will provide an opportunity for the Turks and Caicos Islands to evaluate whether existing legislative and administrative arrangements are adequate and sufficient to address existing and emerging threats in line with international standards. The assessment will also assist the TCI, including financial sector stakeholders to apply a risk-based approach in their business practices.  We have had the support of both public and private sector stakeholders and are very grateful for their collaboration.”

For more information on the National Risk Assessment, please contact Khalila Astwood Principal Crown Counsel, International at the TCI Attorney General Chambers at This email address is being protected from spambots. You need JavaScript enabled to view it. or Paul Coleman Head of the Compliance Unit at the Turks and Caicos Financial Services Commission at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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NOTES FOR THE EDITOR

DISCLAIMER

The National ML/TF Risk Assessment of the Turks and Caicos Islands was conducted as a self-assessment by the Turks and Caicos Islands Authorities, using a methodology developed by the World Bank. Any findings from the assessment are those of the Turks and Caicos Islands authorities, and do not reflect any views of the World Bank Group.

1. What is the National Risk Assessment for Money Laundering and Terrorist Financing (ML/FT)?

The National Risk Assessment is an advisory package developed by the Financial Market Integrity Unit of the World Bank to assist countries in identifying and contending with their risks posed by money laundering and terrorism financing. It has been developed over the past five years as a result of its work with numerous countries on AML/CFT related issues.

The National Risk Assessment supports countries in conducting self-assessments through a systematic and organized process designed to address their specific challenges and needs. The World Bank offers the self-assessment tool, guidance, advisory services and help in undertaking assessments. The process involves the participation of the public and private sector and aims to build a durable mechanism to deal with on-going risks.

The self-assessment tool is developed based on recommended good practices and international standards, including those established by the Financial Action Task Force (FATF).

2. How does it operate?

The risk assessment is organized, led and owned by the country, ensuring the development of the country’s own capacity to undertake future risk assessments with none or minimal external support.

The World Bank Group provides a recommended process (which can be adapted according to country circumstances), the risk assessment tool, training on the tool, and guidance to contribute to the strength and reliability of the assessment.

Central to the NRA package is an Excel-based tool developed by the World Bank to identify the main money laundering and terrorism financing risks. It does this by examining the regulatory, institutional, and economic environment within the country.  It looks at the threats, i.e. the scale and patterns of the suspected illicit financial flows linked to crime and/or terrorism. The tool also examines the vulnerabilities i.e. the weaknesses or gaps in a country’s defenses against money laundering/terrorist financing. 

The World Bank’s guidance and advice includes assistance for countries in establishing a Working Group made up of experienced country-based practitioners from government and, as appropriate, private sector, which deal with the assessment and its outcomes. 

3. Where has the World Bank’s National risk assessment been carried out?

Following requests, the World Bank National risk assessment tool has been used by over 70 countries in Europe, the Caribbean, Latin America, Asia and Africa. Thirty of these risk assessment have been completed, while the rest are currently continuing.

The World Bank’s national risk assessment tool faces growing demand from new countries. Approximately 25 countries are discussing with the World Bank future use of the World Bank’s national risk assessment tool and training.