Providenciales, Turks and Caicos Islands, 17th February 2026 - The Government of the Turks and Caicos Islands acknowledges the recent announcement concerning its inclusion on the EU lists of non-cooperative jurisdictions for tax purposes.
While the fifth annual monitoring process of the Forum on Harmful Tax Practices (FHTP) identified areas for improvement—specifically in strengthening the compliance programme and enhancing statistical data output—the Government wishes to emphasize that this assessment does not reflect inaction. Rather, it highlights technical enhancements that are already actively underway.
The Turks and Caicos Islands has commenced measurable steps to address the recommendations. The reporting tool used for Economic Substance submissions is currently being revised to improve the accuracy, efficiency, and exchange of data. Steps to procure a wholistic reporting module has begun and will include features that will significantly enhance data collection, reporting capabilities, and analytical reports. These measures will ensure transparency in line with international standards.
The Government has already taken steps to amend the Act allowing the regulatory body, the Financial Transactions Information Exchange Unit (FTIE) the power to issue sanctions from within. The monitoring of economic activity and ensuring compliance with the requirements will be effectively demonstrated through the powers granted to the regulatory body under the Companies and Limited Partnership (Economic Substance) (Amendment) Act.
The compliance team within the FTIE is being equipped with advanced statistical and data analytical training to improve monitoring of targeted entities. This ensures more effective oversight and strengthens the jurisdiction’s ability to identify and address risks in a timely manner.
The current structure of the FTIE will also be reviewed with a view to implementing possible change management measures. A comprehensive assessment of the Unit’s current processes, effectiveness, efficiency, skills, and resources will be revised with a conclusive objective to enhance the workflow, refine the productivity and align the processes with international requirements.
The Government remains fully committed to meeting and exceeding global regulatory expectations. The identified enhancements form part of a continuous improvement process that demonstrates the jurisdiction’s proactive and cooperative approach to compliance.
The Turks and Caicos Islands values its reputation as a responsible international financial centre and will continue to work constructively with international partners to ensure full alignment with Economic Substance requirements and best regulatory practices.