Financial Crime Investigation Methods in Grenada: Treasury Department Issues Advisory
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory to banks and financial institutions operating in the US, urging them to exercise enhanced scrutiny on transactions involving Grenada. The advisory was issued in April 2002.
Grenada’s Challenges in Fighting Money Laundering
Grenada, a commonwealth country located in the Caribbean, has been identified by the Financial Action Task Force on Money Laundering (FATF) as non-cooperative in the fight against money laundering. The country faces systemic problems in its financial sector, including:
- Lack of ability for financial supervisors to compel institutions to produce customer account information
- Secrecy laws that prevent disclosure of information to law enforcement authorities
- Limited cooperation with foreign counterparts
Recent Efforts to Strengthen Anti-Money Laundering Regime
Despite recent efforts by Grenada to strengthen its anti-money laundering regime, the country’s legal, supervisory, and regulatory systems still create significant opportunities for financial crimes.
Treasury Department Advisory
The Treasury Department has warned that transactions involving banks or other entities and accounts maintained in Grenada may be used for illegal purposes. In response to this advisory:
- US financial institutions are advised to give enhanced scrutiny to all financial transactions originating in or routed to or through Grenada, or involving entities organized or domiciled, or persons maintaining accounts, in Grenada.
- Financial institutions subject to the suspicious transaction reporting rules should carefully examine available facts relating to any such transaction to determine if it requires reporting.
Key Takeaways
- The issuance of this advisory does not mean that US financial institutions should curtail legitimate business with Grenada.
- Institutions are advised to exercise caution and report any suspicious transactions in accordance with applicable law.
US Support for Grenada’s Efforts
US officials have pledged to provide technical assistance to Grenadian officials as they work to remedy the deficiencies in their counter-money laundering systems.