TCI Completes National Risk Assessment on Money Laudering and Terrorist Financing
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 26th and 27th 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 28th 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
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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.