The Turks and Caicos Islands is a British overseas territory situated in the Caribbean Sea.
The economy of the Turks and Caicos Islands is based on tourism, offshore financial services, and fishing.
Currently there are 7 banks operating in the Turks and Caicos Islands. The banks are foreign-controlled and operate a traditional business model with high capital buffers.
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There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
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):
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):
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.
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).
|FATCA Status in the Turks and Caicos Islands|
|IGA in effect since 01 December 2014, Model 1|
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.
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Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
There is no deposit guarantee scheme in Turks and Caicos Islands.
Financial Services Commission
|Number of Banks|
Currently there are 7 credit institutions operating in Turks and Caicos Islands.