Financial Crime World

Anti-Money Laundering and Terrorism Financing Regulations in Grenada

Overview

The Proceeds of Crime (Anti-Money Laundering and Terrorism Financing) Regulations, SRO. 5 of 2012 outline the requirements for preventing money laundering and terrorism financing in Grenada. This article summarizes key points related to the Money Laundering Reporting Officer (MLRO), due diligence audits, establishment of procedures, staff training, and other relevant requirements.

Money Laundering Reporting Officer (MLRO)

The MLRO plays a critical role in preventing money laundering and terrorism financing. Key responsibilities include:

  • Acting as a liaison between the relevant person and the Financial Intelligence Unit (FIU)
  • Reporting suspicious transactions or activities to the FIU

Example of an Effective MLRO

  • Clearly communicate with staff on procedures for reporting suspicious activity
  • Maintain open lines of communication with the FIU
  • Ensure timely and accurate reporting of suspicious transactions

Due Diligence Audits

The Financial Intelligence Unit (FIU) or a designated person may conduct inspections to ensure compliance with regulations, laws, and guidelines. These audits include:

  • Conducting an inspection of relevant persons to determine compliance
  • Issuing directives for purposes of these regulations and guidelines
  • Publishing directives in the Gazette unless restricted

Tips for Preparing for Audits

  • Maintain accurate records of all transactions
  • Ensure staff are aware of procedures for reporting suspicious activity
  • Conduct regular reviews of internal controls and compliance procedures

Establishment of Procedures

Relevant persons must establish written internal reporting procedures that enable staff to report suspicious transactions or activities. These procedures should include:

  • A clear reporting chain
  • Access to relevant information
  • Full compliance with guidelines

Example of Effective Reporting Procedures

  • Establish a dedicated team for handling suspicious activity reports (SARs)
  • Provide training on SAR procedures and protocols
  • Ensure regular reviews of internal controls and compliance procedures

Staff Training

Relevant persons must provide education and training for directors, management, key staff, and other personnel. This includes:

  • Provisions of regulations, laws, and guidelines related to money laundering and terrorism financing
  • Relevant international conventions, resolutions, and standards
  • Personal obligations under these enactments
  • Compliance procedures and internal control systems

Tips for Effective Staff Training

  • Provide regular training sessions on anti-money laundering and combating the financing of terrorism (AML/CFT)
  • Ensure staff understand their roles and responsibilities in preventing money laundering and terrorism financing
  • Encourage open communication among staff on AML/CFT issues

Other Requirements

Relevant persons must maintain records of training provided to staff and review policies, procedures, and training programs regularly. This includes:

  • Maintaining records of training sessions
  • Reviewing and updating policies, procedures, and training programs regularly
  • Ensuring compliance with regulations and guidelines

Example of Effective Record-Keeping

  • Maintain accurate records of all transactions and activities
  • Ensure staff are aware of procedures for reporting suspicious activity
  • Conduct regular reviews of internal controls and compliance procedures