National Risk Assessment Paul Coleman Head of Compliance Turks and Caicos Islands Financial Services Commission

Note to delegates: the following slides support to the presentation They are not the presentation, - which had to be heard for the slides to be relevant. The content presented was based upon a number of FATF documents as well as background information obtained from the press and the internet. For reference material please refer to: The FATF Recommendations 2012; FATF Methodology for assessing technical compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems. FATF Guidance National Money Laundering and Terrorist Financing Risk Assessment. FATF Report: Global Money Laundering & Terrorist Financing Threat Assessment. July 2010 I would also urge delegates to research the FATF website as documentation and reports are constantly being added. Paul Coleman: Head of Compliance TCI Financial Services Commission

$360m laundered in the next 90 minutes. The United Nations Office on Drugs and Crime The United Nations Office on Drugs and Crime (UNDOC) 2009

FATF Recommendation 1

Assessing Risks Recommendation 1

Explosion of crimes

Drug Dealing

Prostitution

Organ trafficking

$200,000 income for a trafficked child every year

Human Smuggling

Poverty through Corruption

Arms dealing

Trade Mispricing

Terrorism

Piracy $5.2m per vessel

CrimeProsecution

CrimeProsecution

Crime Asset Forfeiture

Ice and Water Predicate Crimes

The TCI Experience

Hard Data

Risk – a function of: Threats Vulnerabilities Consequence

Threats Criminals, terrorist groups, their facilitators, and their funds.

Vulnerabilities Exploitation of weaknesses in AML/PTF systems and controls, or certain features of a country.

Consequences Impact or harm caused.

TCI is second amongst its peers in the Secrecy Index

Private Sector Regulated and Supervised

Legislation and Supervision Practitioner Governance Enforcement Due diligence information Assessment Criteria

Legislation and Supervision Practitioner Governance Enforcement Due diligence information

Predicate Crime Criminal Proceeds Practitioners Suspicious Activity Reporting FIA – Investigation Law enforcement Director of Public Prosecutions JudiciaryProsecution Asset Forfeiture

Why Not Turks and Caicos?

Does it make sense?