CLA News / Building Trust, Broadening Horizons: How the Turks and Caicos Islands is Expanding Financial Services by Devon McLean
When the Cayman Islands and the British Virgin Islands (BVI) introduced virtual asset service provider (VASP) legislation in 2020 and 2022, respectively, it was strategic and forward thinking, but not surprising. Cayman’s financial services sector accounts for nearly half of its economy, while BVI’s represents as much as 60%. Establishing frameworks to regulate cryptocurrency and tokenized investment reinforced their positions as financial services powerhouses across the Caribbean.
By contrast, financial services make up closer to 12% of the Turks and Caicos Islands’ (TCI) economy. That may be changing. Developments in late 2025 mark an evolution of the TCI’s traditional focus on boutique financial services, primarily trusts and private wealth, to a broader financial market.
In November 2025, the TCI Financial Services Commission (TCI FSC) issued a public statement that cryptocurrency activities remain unauthorised in the TCI, but promising that digital asset regulation is underway. A month later, the TCI FSC approved what is being called the first public offering in the TCI’s history. These milestones signal a jurisdiction capable of inspiring investor confidence in ways that were unthinkable even a few years ago.
In 2020 the Caribbean Financial Action Task Force (CFATF) released its evaluation report on the TCI’s anti-money laundering and combating the financing of terrorism measures (AML/CFT), finding the TCI low or moderately compliant in most categories. Among the CFATF’s most damaging findings was that both the financial sector and designated non-financial businesses and professions, including lawyers, had limited to no knowledge or understanding of the risks of money laundering and terrorism financing, how it impacted them, or mitigation and compliance measures.
In that context, sudden legislative changes aimed at expanding the financial services landscape in the TCI akin to the 2020 Cayman and 2022 BVI legislation may have hindered the sector’s growth rather than spurred it. The historical capacity of the market participants to understand and manage risks, and lack of oversight, may have led to irreparable reputational damage.
Instead, the TCI pursued a measured approach, implementing incremental improvements in knowledge, compliance, and transparency, creating a solid foundation for growth that plays to the market’s strengths.
CFATF’s 2023 follow up report noted that the TCI improved in 37 of the 40 recommendations made in 2020. That included the introduction of guidance in 2020 related to “fit and proper” persons, and 2022 amendments to legislation expanding the types of businesses captured by AML/CFT requirements.
In the years since, the TCI has continued to demonstrate its commitment to protecting consumers with improved oversight, AML/CFT compliance, and disclosure.
In 2025, the TCI amended its Beneficial Ownership Regulations to allow members of the public with a legitimate interest to access information contained in its beneficial ownership registry, among other changes. The move was a significant step toward greater transparency in the jurisdiction, where access was previously limited to law enforcement and the like. For now, the TCI is ahead of BVI in that regard. BVI is expected to provide expanded access to its beneficial ownership registry on similar grounds as of April 2026.
That commitment to transparency positions the TCI to both adopt measures like the “travel rule”, already embedded in both Cayman and BVI’s VASP legislation, and be certain the sector will comply with the rule. The travel rule would require originator and beneficiary information to be transmitted (“travel”) with digital transfers, based originally on the same rule for wire transfers.
Before its financial markets expand further, or at least in conjunction with any expansion into the digital asset space, the TCI will need both legislative action and industry collaboration to strengthen cybersecurity. Cayman and BVI’s respective VASP frameworks set standards for cybersecurity protocols, incident reporting, and proof of cybersecurity expertise for fit and proper assessments. The TCI will need comparable requirements to maintain investor confidence.
Although the TCI has not yet enacted the promised VASP legislation, it has been laying the groundwork. Despite its shortcomings in 2020, CFATF ranked TCI third out of nine Caribbean countries, surpassed only by Cayman and Trinidad and Tobago. In less than 5 years, it has transformed both practice and perception of its financial services sector. The gains reflect legislative reforms, sustained efforts and vision by the TCI FSC, and the industry buy-in necessary for making compliance work.
Where the TCI’s financial market goes next depends on the forthcoming digital asset regulation. What is certain is that the industry has benefitted from the incremental approach. By allowing regulators and market participants to adapt gradually, TCI has minimized reputational risk while achieving significant progress in relatively few years. Rather than racing to pre-empt the market, the TCI has chosen a measured path that could ultimately position it as a credible player in the Caribbean’s evolving financial landscape.
Author: Devon McLean
Designation: Senior Associate Attorney
Law Firm: Dentons TCI
Email address: devon.mclean@dentons.com
Country: Turks and Caicos Islands
