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Economy and Banking Sector of the Turks and Caicos Islands

Turks and Caicos Islands
Location
Caribbean Sea
Population  (2012)
31 458
EU Status
not part of the EU (OCT)
Currency
USD (United States dollar)
Nominal GDP
n/a
Credit Ratings (as of Sep 2016)
-/-/BBB+
Consolidated Banking Assets
n/a
Deposit Guarantee
0 USD
Number of Banks
7

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.

List of Banks in Turks and Caicos Islands

National Currency

United States Dollar (USD)

The official currency of the Turks and Caicos Islands is the United States dollar (USD).

Credit Ratings (as of Sep 2016)

Fitch Moody's S&P
- - BBB+ (lower medium grade)

Information Exchange

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

  • spontaneously;
  • on request;
  • automatically.

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.

Exchange on Request: 17 Signed Agreements

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 Exchange: Starts in September 2017

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

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).

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.

Further Information

Deposit Guarantee Scheme

Maximum Protected Amount
0 USD

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

There is no deposit guarantee scheme in Turks and Caicos Islands.

Banking Supervision

Financial Services Commission

Banking Sector Structure

Number of Banks
7

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