Financial Crime World

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Banking Compliance and Risk Management in Suriname: A Major Concern

Suriname, a small country in South America, has been identified as a “money launderer’s paradise” due to its lack of regulations, weak institutions, and endemic corruption. The country’s banking sector is one of the key weaknesses in anti-money laundering (AML) efforts, with banks prioritizing profits over compliance.

Challenges Facing AML Efforts

  • Poor regulation
  • Corruption
  • Drug trafficking
  • Mineral trafficking
  • Porous borders
  • Used cars as a method of transaction-based laundering

An estimated $56 million to $139 million is laundered every year in Suriname.

Lack of Effective Regulation

Despite having updated anti-corruption laws on the books, these laws are not implemented, and the mandated Anti-Corruption Commission has not been established. Convicted criminals operate their enterprises with impunity from within the government, making it difficult for AML efforts to be effective.

Banking Sector Challenges

  • Lack of technical knowledge and expertise
  • Currency exchanges often unregulated
  • Fintech, DNFBPS, and the jewelry industry present risks

The country’s porous borders with Brazil and Guyana allow for easy smuggling of illegal gold and cocaine. The car industry and the jewelry industry have refused to participate in the national risk assessment, which labeled them as key channels of money laundering.

Additional Risks

  • Terrorist financing remains a significant risk
  • Suriname is a key transit country for drug trafficking

In 2021, a national risk assessment was completed with the support of the US Embassy in Suriname, but the document is confidential and there is little hope that the government will act on it. The previous government of Desi Bouterse, a convicted murderer and drug trafficker, still maintains significant influence in the new government.

Support for Businesses Operating in Latin America and the Caribbean

To support businesses operating or planning to operate in Latin America and the Caribbean, VinciWorks has created a guide to AML challenges and laws in the region.