Economy and Banking Sector of the Turks and Caicos Islands

Location Caribbean Sea
Population (2012)31 458
EU Status not part of the EU (OCT)
Dependent Territory Of United Kingdom (British Overseas Territory)
Economy
National Currency USD (United States dollar)
Credit Ratings (as of Sep 2016)
    Fitch-
    Moody's-
    S&PBBB+ lower medium grade
Taxation
Information Exchange 
    Exchange on Request 17 signed agreements
    Automatic Exchange starts in September 2017
FATCA IGA in effect since 01 December 2014, Model 1
Banking Sector
Deposit Guarantee Scheme 
    Maximum Protected Amount 0 USD
Banking Supervision Financial Services Commission
Banking Sector Structure 
    Number of Banks7
 List of Banks in Turks and Caicos Islands

EU Status

Turks and Caicos Islands is one of the OCTs (Overseas Countries and Territories) of the European Union. This means that although its nationals are in principle EU citizens, Turks and Caicos Islands is not part of the EU or directly subject to EU law.

Top

Taxation in Turks and Caicos Islands

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Turks and Caicos Islands signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

 Australia
 Canada
 Denmark
 Faroe Islands
 Finland
 France
 Germany
 Greenland (Feb 2013)
 Iceland
 Netherlands
 Norway
 Portugal
 Sweden
 United Kingdom

There are also several agreements between Turks and Caicos Islands and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):

 Guernsey (Jul 2014)
 Ireland
 New Zealand

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Turks and Caicos Islands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Further Information:
Automatic Exchange of Information on Financial Accounts
Countries Which Will Not Automatically Exchange Account Information

Top

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

Turks and Caicos Islands has FATCA agreement with the U.S. in effect since 01 December 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Turks and Caicos Islands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: Turks and Caicos's financial accounts hold in U.S. financial institutions will not be reported to Turks and Caicos's authorities.

Further Information:
FATCA and European countries

Top

Turks and Caicos's Banking Sector

Deposit Guarantee Scheme

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

There is no deposit guarantee scheme in Turks and Caicos Islands

Top

Banking Sector Structure

Currently there are 7 credit institutions operating in Turks and Caicos Islands.

Top

Share on Google+