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 follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Turks & Caicos was undertaken in 2023. According to that Evaluation, Turks & Caicos was deemed Compliant for 22 and Largely Compliant for 15 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

The economy of Turks and Caicos is predominantly driven by tourism, offshore finance, and fishing, with the US dollar as the primary currency. The tourism sector significantly contributes to the GDP, particularly through hotels and restaurants, although the islands face challenges such as a negative trade balance and rising unemployment, exacerbated by the COVID-19 pandemic.

The investment climate in Turks and Caicos is generally favorable, particularly for tourism and real estate development, which attract foreign investors. The government has introduced policies to promote investment, such as offering residency permits for significant financial contributions to the local economy. However, potential investors should consider challenges like reliance on imports and the economy's vulnerability to external shocks.