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 significant contributions from the hotel and restaurant sector. The islands import most of their goods from the United States and the United Kingdom, and while the economy has diversified since the 1960s, it faces challenges such as a negative trade balance and rising unemployment, particularly in the aftermath of the COVID-19 pandemic.

The investment climate in Turks and Caicos is favorable for foreign investors, particularly in the tourism and real estate sectors, with the government offering various incentives such as residency permits for significant property investments. Despite the potential for growth, challenges such as a negative trade balance and rising unemployment, exacerbated by the COVID-19 pandemic, remain concerns as the government seeks to enhance economic resilience and attract sustainable investments.