Financial services

The financial services sector in the Turks and Caicos Islands (TCI) is a key component of its economy, second only to tourism. It comprises banking, insurance, reinsurance, trust companies and funds.

Regulation

The TCI Financial Services Commission (FSC) is the regulatory body responsible for supervising the banking, insurance and trust business sectors on the islands. It is strongly supported by the British Government and is designed to promote the economic independence of TCI as it continues to develop into a major luxury tourism and financial services hub. Most importantly, it ensures compliance with international standards, particularly in anti-money laundering (AML) and combating the financing of terrorism (CFT). 

Insurance and Reinsurance

The insurance and reinsurance sector in TCI plays a critical role in its economic stability and growth and is well-positioned to support the financial security of residents and businesses. Insurance companies are increasingly adopting innovative solutions to navigate the challenges of a dynamic market environment.

The principal reasons for establishing an insurance company in a financial services jurisdiction, such as TCI, include:

• Cost reduction
• Stabilisation of earnings
• Greater availability of insurance cover
• Improved management of group funds
• Flexibility of regulation (compared with the equivalent onshore requirements)
• Tax efficiencies and deferral
• Development of a profit centre

Baker Tilly can help clients to establish a new operation, assist with regulatory and compliance activities, and deliver independent, annual audits.

Banking

Due to its favorable tax laws and regulatory environment, TCI is an attractive alternative jurisdiction for international clients. Three of the major Canadian banks are represented in TCI, all of whom Baker Tilly enjoys a long-standing, strong working relationship with.

There is no central bank in TCI, no exchange control and the US$ is the only currency.

Services offered by Baker Tilly TCI to the banking industry include annual audit services and assistance with internal audit and regulatory compliance.

Trust companies

Licensed trust companies in TCI are primarily boutique operations with associated company management operations.

Baker Tilly TCI provides annual audit services to licensed trust companies and also to the underlying trusts where such provision is mandated in the trust agreements.

Funds

Baker Tilly provides annual audit services to the fund industry.