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Finance Ministry Considers Revoking Licence of Financial Institution Over Employee’s Criminal Record

Background

The Ministry of Finance has announced that it is considering revoking the licence of a financial institution licensed to engage in offshore banking, insurance, trust or betting business if an employee or officer of that institution is convicted of an indictable offence or fails to disclose any conviction.

Power to Revoke Licence

According to Section 19 of the Money Laundering (Prevention) Act, Chapter 197A, the Ministry has the power to revoke a licence issued to a financial institution if:

  • The institution’s employee or officer is convicted of an indictable offence after the issue of the licence.
  • The employee or officer fails to disclose any conviction at the time of application for the licence.

Definition of Indictable Offence

The Act defines an “indictable offence” as any offence punishable with imprisonment for a term of five years or any greater punishment.

Other Circumstances for Revocation

The Ministry also has the power to revoke a licence if:

  • The institution’s employee or officer is the subject of any criminal investigation, whether in Grenada or elsewhere, and whether before or after the grant of the licence.

Purpose of the Act

The Money Laundering (Prevention) Act was enacted on April 17, 2000, with the aim of preventing and combating money laundering and other financial crimes. The Act requires financial institutions to:

  • Maintain records
  • Report suspicious transactions to the Supervisory Authority

Requirements for Financial Institutions

Financial institutions licensed under the Act are also required to disclose any information in relation to a transaction that may be relevant to the prevention or detection of money laundering or other financial crimes.

Consequences of Non-Compliance

The Ministry has announced that it will take stern action against any financial institution that fails to comply with the requirements of the Act and its regulations. The Minister of Finance has warned that financial institutions that fail to maintain proper records and report suspicious transactions may face penalties, including fines and imprisonment.

Fines and Penalties

  • A person who leaves Grenada with more than $100,000 in cash or negotiable bearer instruments without declaring the same to the Supervisory Authority commits an offence and is liable on summary conviction to a fine of $250,000.
  • A financial institution that fails to comply with its requirements may be fined up to $1 million or imprisoned for five years, or both.

Regulations

The Minister of Finance has the power to make regulations prescribing any matter necessary or convenient to give effect to the provisions of the Act and for its due administration. Regulations made under the Act may extend the application of any Act so as to enable Grenada to take appropriate measures to cooperate with foreign states in matters concerning or relating to money laundering.

Monitoring and Compliance

The Ministry will continue to monitor financial institutions licensed under the Act to ensure compliance with its requirements and regulations. The Minister of Finance has warned that financial institutions that fail to comply with the Act and its regulations may face penalties, including fines and imprisonment.

Contact Information

For more information on the Money Laundering (Prevention) Act and its regulations, please contact the Ministry of Finance at [insert contact details].