Banks Overview

Banking business is defined under the Banking Ordinance 1998, as amended ("the Banking Ordinance") Section 2 as

  • The business of accepting deposits, and
  • Employment of those deposits by any means at the risk of the person accepting those deposits.

Anyone carrying on activities defined as banking business in the islands must be licensed to do so. Applications for banking licences must be submitted to the Commission for approval.

Trust Companies Overview

A new suite of Trust legislation was enacted in the Turks and Caicos Islands (TCI) on September 15, 2016, replacing the Trusts Ordinance 1990 and The Trustees Licensing Ordinance 1992. The new suite of legislation includes:

  • Trusts Ordinance 2016
  • Trust Companies (Licensing and Supervision) Ordinance 2016
  • Trust Companies (Regulations) 2016
  • Trust Companies Code 2016

 

Regulation of Trust Companies

Pursuant to section 4 of the Financial Services Commission Ordinance, Turks and Caicos Islands Financial Services Commission“(the Commission”), responsible for the supervision and regulation of financial services businesses in the TCI. In addition, section 8 of the Trust Companies (Licensing and Supervision) Ordinance 2016 gives the Commission the authority to regulate the trust industry in the TCI.

 

Licensing of Trustees and Application Process

The Trust Companies (Licensing and Supervision) Ordinance 2016 provides for restricted and unrestricted licences to be granted.

Restricted licences are issued subject to the provision that the trustee only acts on behalf of a named trust or trusts. Unrestricted licensees are not subject to this provision.

All applications for licensing should be submitted to the Commission. Applications should follow the criteria set out in Trust Companies Code 2016 and the Commission’s Trust License Application form.

Applicants must satisfy the Commission that they or their management are fit and proper in all respects to act as a trustee.

Main Licensing Conditions

  • Capital Requirement – fully paid-up share capital of $250K
  • Statutory Restricted Deposits - $100k
  • Business plan

Personnel who qualify under the ‘Fit and Proper’ Test Guideline

Main Filing Requirements

A trust licensee must submit to the Commission:

  • Audited Financial Statements;
  • Auditor’s Report and Management Letter
  • Annual Directors’ certificate;
  • Semi-annual Prudential Returns;
  • Annual compliance report;
  • Internal Audit reports;
  • Evidence of professional indemnity insurance

Trustees Fee Schedule

The full details of the Trustees Fees can be found in Schedule 2 ofthe Trust Companies Regulations 2016, but for ease of reference a summary is shown below.

Application Fees

  • Unrestricted Trust Company $3,000
  • Restricted Trust Company$1,000

Annual Licence Fee


On or before the 31st day of March in each year after the grant of the license and during its subsistence:

  • Unrestricted Licence

Small trust companies (gross revenue less than $2,000,000)

$10,000

Medium size trust companies (gross revenue greater than $2,000,000 but less than $5,000,000)

$15,000

Large trust companies (gross revenue equal to or greater than $5,000,000)

$20,000



  • Restricted Trust Company $1,500

 

*If the applicant is a wholly owned subsidiary of a licenced trust company, the fee payable on application shall be one-fifth of the fee otherwise payable. If a licenced trustee is a wholly owned subsidiary of another licenced trustee, the annual fee, including the proportion payable on grant of the licence, shall be one-tenth of the fee otherwise payable.

*When a licence is first granted, the annual fee payable for the initial year of the company's operations shall be the relevant annual fee indicated above, pro-rated from the month in which the licence is granted to the following 31st March.

Trust Law Advisory Committee

A Trust Law Advisory Committee (TLAC) has been established pursuant to section 59 of the Trust Companies (Licensing and Supervision) Ordinance 2016. The TLAC, consisting of members of the Turks and Caicos Islands Association of Licensed Trustees and the Commission, was created to facilitate collaboration and regular dialogue in an effort to keep the Trust Law and Regulation of the Islands under regular review.

For further information, please contact the Bank and Trust department at bd@tcifsc.tc



Money Transmitters Overview

Money Service Business is defined under section 2(a) and (b) of The Money Transmitters Ordinance 2007, as

  1. The business of providing (as a principal business) any or all of the following services -
    1. money transmission;
    2. cheque cashing;
    3. currency exchange;
    4. the issuance, sale or redemption of money orders or traveller’s cheques; and
    5. such other services as the Governor in Council may specify by notice published in the Gazette; or
  2. The business of operating as an agent or franchise holder of a business mentioned in paragraph (a).