Money Laundering (Prevention) Act in Grenada
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The Money Laundering (Prevention) Act is a Grenadian law aimed at preventing and combating money laundering activities. The key aspects of this act are outlined below.
Definition of Financial Institutions
Scope of the Act
- Banking businesses
- Offshore banking businesses
- Venture risk capital businesses
- Money transmission services
- Issuing and administering means of payments (guarantees and commitments)
- Trading for own account or for account of customers in various instruments
- Money broking
- Money lending and pawning
- Money exchange
- Insurance business
- Real property business transactions
- Credit unions business transactions
- Building societies business transactions
- Trust business
- Offshore betting
- Company management business
- Registered agents licensed pursuant to the International Companies Act
Reporting Requirements and Confidentiality
Suspicous Transactions
Financial institutions are required to report any suspicious transactions or behavior to the Grenadian authorities.
Confidentiality Guarantee
Confidentiality is guaranteed for individuals reporting suspected money laundering activities under certain conditions.
Prosecution of Offences
- Prosecutions for offences committed under this act can only be instituted with the consent in writing of the Director of Public Prosecutions.
- Limitation of proceedings: A prosecution or other proceeding instituted under this act must be instituted within six years from the date the offence was committed or the cause of action accrued.
Regulations
The Minister of Finance may make regulations to give effect to the provisions of this act and its administration, which can extend the application of any act for cooperation with foreign states in matters concerning or relating to money laundering.
Penalties
- A person who commits an offence under this act without a specified penalty is liable on summary conviction to a fine of two hundred and fifty thousand dollars or imprisonment for five years, or both.
Offences Covered by the Act
The Money Laundering (Prevention) Act covers various offences including:
- The commission in Grenada of any offence under the Drug Abuse (Prevention and Control) Act.
- The commission in Grenada of any offence which is punishable with imprisonment for a term of five years or any greater punishment.
- Acts that occurred outside Grenada but would have constituted an offence under the Drug Abuse (Prevention and Control) Act if they had occurred in Grenada.
- Acts that occurred outside Grenada but would have constituted an offence which is punishable with imprisonment for a term of five years or any greater punishment if they had occurred in Grenada.
Summary
The Money Laundering (Prevention) Act aims to prevent and combat money laundering activities by requiring financial institutions to report suspicious transactions, providing confidentiality guarantees for individuals reporting suspected money laundering, prosecuting offences committed under this act, limiting the time frame for proceedings, making regulations for its administration, and imposing penalties for committing offences under this act.