TCI still in anti-money laundering `grey’

The Turks and Caicos Islands still fall way below the standard for financial centres with high-quality anti-money laundering controls, having only signed four Tax Information Exchange Agreements (TIEAs), according to Organisation for Economic Corporation and Development (OECD).

Based on that scenario, the TCI has been placed on the ‘grey list’, which means that they have not met the anti-monetary laundering standard. To be standard countries need to sign 12 TIEAs.

In July, the Turks and Caicos Islands signed three TIEAs with three members of the OECD: Ireland, the United Kingdom and the Kingdom of the Netherlands.  The Treaties were signed by former finance minister Royal Robinson, according to the TCI Government Website.
The site noted that the Government was also in negotiating TEIAs with a number of other countries, including 7 Nordic Countries, Germany, Belgium, Australia, New Zealand, Canada and the USA.

TIEAs help to disclose assets that have not been reported in home countries and also enable tax authorities to access information about persons who are seeking to evade payment of tax.

Information that would be typically relevant in such investigations includes information regarding bank accounts and beneficial ownership of companies or trusts established in non-OECD jurisdictions.

The Turks and Caicos Islands now have agreements with the United Kingdom, Denmark, Ireland and Netherlands.

Last April, at the G20 summit held in London, an agreement was made to guarantee transparency and economic sustainability in all territories, including tax havens. It required, among other things, that all of the UK's overseas territories sign at least 12 TIEAs to be placed on the OECD list of jurisdictions that had fully implemented internationally agreed tax standards, known as the "white list".

On October 5, Cayman signed a TIEA with France - its 13th.

Cayman's premier designate McKeeva Bush said: "We hope that this agreement will act as a catalyst for French companies looking to diversify into new markets. Whilst providing the assurance of mutual cooperation, market access and smooth capital flows, we are hoping it will contribute to growth in international business and to stimulating our local economy."

The TCI is not alone, as Anguilla also only has four TIEA. Bermuda and the British Virgin Islands have signed15 and 14 agreements, respectively.