Grenada’s Financial Institutions Fail to Comply with Anti-Money Laundering Regulations
A recent investigation by the Grenada Financial Intelligence Unit (FIU) has revealed that many financial institutions in the country are not complying with anti-money laundering regulations. These regulations, put in place to prevent money laundering and terrorist financing, require financial institutions to have certain procedures in place to detect and report suspicious transactions.
Non-Compliance with Written Internal Reporting Procedures
According to the investigation, many financial institutions are failing to establish written internal reporting procedures as required by regulation 15 of the Proceeds of Crime (Anti-Money Laundering and Countering the Financing of Terrorism) Regulations, 2012. This means that they are not providing a clear chain of command for reporting suspicious transactions to their Money Laundering Reporting Officers.
Lack of Adequate Training
Additionally, many financial institutions are not providing adequate training to their staff on anti-money laundering regulations and procedures as required by regulation 16 of the same regulations. This lack of training may lead to a failure to detect and report suspicious transactions, which can undermine the effectiveness of the country’s anti-money laundering regime.
Directives Issued but Compliance Remains Low
The FIU has issued directives to financial institutions to comply with these regulations, but many have failed to do so. The agency is now considering issuing penalties for non-compliance.
“We need to ensure that our financial institutions are taking adequate measures to prevent money laundering and terrorist financing,” said a spokesperson for the FIU. “We will continue to monitor their compliance and take action where necessary.”
Government Commitment to Combating Financial Crime
The Grenada government has emphasized its commitment to combating money laundering and terrorist financing, and has pledged to work with financial institutions to improve compliance.
“We recognize the importance of anti-money laundering regulations in preventing financial crime,” said a spokesperson for the government. “We are working closely with financial institutions to ensure that they are complying with these regulations, and will take action where necessary to protect our financial system.”
Ongoing Investigation and Expected Penalties
The investigation is ongoing, and it is expected that further penalties will be issued to non-compliant financial institutions.
References
- Proceeds of Crime (Anti-Money Laundering and Countering the Financing of Terrorism) Regulations, 2012
- Grenada Financial Intelligence Unit (FIU)
- Government of Grenada