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Financial Crime Reporting Guidelines in Suriname: Understanding the Key Challenges

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Suriname, a country in Latin America and the Caribbean, has been plagued by financial crimes including money laundering, drug trafficking, and corruption. In this article, we will examine the key challenges of anti-money laundering (AML) compliance in Suriname and provide guidance on how organizations can assess customer, geographic, or matter risk.

Poor Regulation

Suriname’s lack of regulations, weak institutions, low technical capacity, and failure to implement laws make it a haven for money launderers. The country’s central bank governor and finance minister were charged with stealing $200 million in financial crimes.

Corruption

Corruption is endemic at all levels of government in Suriname, making it the largest financial crime affecting the country. A litany of scandals has involved ministries and political leaders, including the former president who was convicted of murder and drug trafficking.

Drug Trafficking

Suriname is a key transit country for cocaine moving from Colombia and Venezuela to Europe, particularly the Netherlands. The country’s porous borders with Brazil and Guyana also allow for easy smuggling of illegal gold and drugs.

Mineral Trafficking

Gold is Suriname’s largest export, representing nearly 80% of all trade. However, mineral trafficking, including illegal logging and timber trafficking, is a significant risk due to endemic corruption and non-existent regulation.

Porous Borders

The country’s borders with Brazil and Guyana allow for easy smuggling of illegal goods.

Used Cars as a Method of Transaction-Based Laundering

Used cars are often used as a method of transaction-based laundering, with cars being imported and sold to hide dirty cash.

Estimated Financial Losses

Estimated $56 million to $139 million is laundered every year in Suriname, making it essential for organizations to understand the risks and responsibilities of AML compliance in the country.

AML Policy Summary

Despite having laws on the books, Suriname has no political will to tackle money laundering or criminality due to rampant corruption at all levels of government.

The country’s anti-corruption laws have been updated, but they are not implemented. The Anti-Corruption Commission has not been established, and convicted criminals operate with impunity from the heart of government.

Weaknesses

  • The banking sector is a key weakness in AML efforts due to banks prioritizing profit over compliance and lacking technical knowledge and expertise.
  • Lawyers, notaries, car dealers, currency exchanges, fintech companies, DNFBPs, and the jewelry industry are all key facilitators for money laundering. The country’s lack of regulation allows these industries to operate with little oversight.

Strengths

  • A national risk assessment was completed in 2021 with support from the US Embassy in Suriname. However, the document is confidential and there is little hope that the government will act on it.

Staying Ahead of Financial Crime Reporting Guidelines in Suriname

To stay ahead of financial crime reporting guidelines in Suriname, download our free guide to compliance. This comprehensive resource provides an overview of key AML challenges and issues, as well as a country-by-country assessment of AML risks and laws.