TCI Finance Minister tables new bill to TIGHTEN DUE DILLIGENCE

By Dana Malcolm

Staff Writer

#TurksandCaicos, December 15, 2022 – Turks and Caicos is aiming to strengthen its investor vetting process, taking note of the scandalous FTX debacle in Nassau, Bahamas involving an American crypto currency businessman now charged with fraud against millions of clients.

In an effort to prevent instances of financial misconduct in the Turks and Caicos, Members of the House of Assembly have now passed a bill that gives Invest Turks and Caicos Agency the power to assist with carrying out certain background checks on potential clients.

The Invest Turks and Caicos Islands Agency (Amendment) Bill laid by E Jay Saunders, Minister of Finance Investment & Trade on Tuesday December 13 will strengthen what Saunders described as the agency’s Know Your Client (KYC) capabilities.

The Minister explained that KYC was a due diligence process used to verify the identity of a person or business and assess the level of risk involved in doing business with them. Saunders referenced the collapse of FTX in neighbouring Bahamas and the subsequent indictment of Sam Bankman-Fried.

Deputy Premier Saunders offered that the case had nothing to do with The Bahamas Government, still FTX ‘brought them a headache they certainly didn’t need.’

“Our Government is amending the Invest Turks and Caicos Islands Agency Ordinance to empower Invest TCI to develop policies, particularly, the Due Diligence Policies, and to charge fees for conducting Due Diligence checks—.” he explained.  “A Due Diligence check involves careful investigation of the economic, legal, fiscal, and financial circumstances of a business or individual.  This covers aspects such as sales figures, shareholder structure, and possible links with crimes.”

It also allows Invest TCI to assist with due diligence for applications of permits under the investment category in the Immigration ordinance.

Saunders maintained that as money transfer tech multiplies and becomes more sophisticated it is increasingly important for the country to safeguard its assets and become even more aligned with global anti-money laundering standards and best practices.

Recently the TCI was placed on the EU blacklist of non-compliant tax jurisdictions.  Despite the lopsided parameters, investigated by Magnetic Media and repeatedly chided by world leaders that are used to decide who lands on the Blacklist, it’s not a place any country wants to be.

Saunders has committed to get the Turks and Caicos Islands off the infamous list.