Turks and Caicos Isands Money Laundering and Terrorist Financing National Risk Assessment Final Workshop
WELCOME REMARKS
BY
THE HONOURABLE RHONDALEE BRAITHWAITE-KNOWLES OBE,
ATTORNEY GENERAL OF THE TURKS AND CAICOS ISLANDS
MADE AT THE
TURKS AND CAICOS ISLANDS MONEY LAUNDERING AND TERROIST FINANCING
NATIONAL RISK ASSESSMENT FINAL WORKSHOP
BLUE HAVEN RESORT
PROVIDENCIALES
TURKS AND CAICOS ISLANDS
26TH – 28TH JUNE 2017
The Turks and Caicos Islands (TCI) is a small international financial centre which services both the resident population and the international market, which in the case of Turks and Caicos is largely from North America. The factors that make the TCI an attractive place for legitimate financial activity are – its status as a British Overseas Territory, political stability, proximity to North America, use of the US Dollar as the legal tender, high-end real estate market, absence of direct taxation and widely understood language and legal system. However, if in the future, concerns were to develop with the effectiveness of the regulated financial sector, the result may be the country being seen as an attractive place through which to launder the proceeds of crime.
Money laundering and terrorist financing presents global threats. In the context of small international financial services centres like the Turks and Caicos Islands, we cannot exclude ourselves from the responsibility of preventing, as far as possible, the use of our jurisdiction by criminals. The continued integrity and stability of our financial system provides strong support for our growth as a nation. The infiltration by the criminal fraternity, could seriously damage the economy.
This is the first National Risk Assessment on money laundering and terrorist financing (NRA) conducted in the Turks and Caicos Islands and reflects the commitment by the Government to uphold the highest international standards in protecting the economy against criminal abuse. The seriousness with which the Government takes these matters is also evident from the large Ministerial presence here this morning as well as the notable presence of the Permanent Secretaries from across the Government.
A framework designed to prevent money laundering and combat terrorist financing and is most effective when it targets resources to where they will be most effective. A country can make sure that resources are directed to prevent and mitigate its money laundering and terrorist financing (ML/TF) risks only by a good analysis and understanding of these risks.
This approach is in line with the recommendations of the Financial Action Task Force (FATF). FATF recommends that countries identify, assess, and understand the money laundering (ML/TF) risks within their jurisdiction and then take action and apply resources to mitigate such risks, based on a risk-based approach. Although such a risk-based approach involves considerable effort, it will ensure that anti-money laundering/counter- financing of terrorism (AML/CFT) regimes are set up that support measures that are commensurate with the actual levels and types of risk encountered.
The World Bank facilitates a systematic and multidisciplinary participatory process to help countries perform their own assessment. This way, they can build capacity for the longer term and establish a process for regularly updating their understanding of the country’s risks.
In completing this exercise, we will have gained a collective understanding of the money laundering and terrorist financing risks that we face and we will be in a strong position to enhance the existing framework and where necessary introduce new measures to provide further protection.