Financial Crime World

GRENADA TAKES STEPS TO COMBAT FINANCIAL CRIME: LATEST TRENDS IN FRAUD PREVENTION

Introduction

The island nation of Grenada is taking a proactive approach to combat financial crime and prevent fraud in the region. As the global economy continues to evolve, financial institutions and regulatory bodies are working together to stay ahead of emerging trends in financial crime.

Several new types of fraud have been reported in recent years, including:

  • Impersonating a company: Individuals set up fraudulent accounts with merchant sites, payment software platforms, websites, or bank loans by claiming to be the owner of a legitimate business.
  • Using front business owners: An individual presents a “front” owner who appears clean on paper but is actually hiding the true owner’s identity.
  • Account takeover via duplicate card requests: Hackers use stolen information to create new cards and take control of existing accounts.
  • Car loan bust outs: Scammers target car dealerships, falsifying documents and obtaining loans for non-existent vehicles.
  • Real estate money laundering: Individuals conceal the source of their funds by purchasing properties through shell companies or offshore accounts.

Combating Financial Crime

Financial institutions in Grenada are implementing new anti-money laundering (AML) and know-your-customer (KYC) protocols to stay ahead of emerging trends in financial crime. These protocols include:

  • Using advanced technology: Verify customer identities using AI-powered systems.
  • Monitoring transactions for suspicious activity: Identify unusual patterns or red flags that may indicate fraud.
  • Collaborating with regulatory bodies: Share information and best practices to combat financial crime.

Regulations Aimed at Preventing Financial Crime

The Corporate Transparency Act, set to take effect next year, aims to expose the true owners behind shell corporations and prevent money laundering through real estate purchases. Geographic Targeting Orders require title insurance companies to identify true persons behind shell companies in certain markets.

Conclusion

As the financial landscape continues to evolve, it is essential for Grenada’s financial institutions to stay ahead of emerging trends in financial crime. By adapting their AML and KYC protocols at the same rate or faster than fraudsters, they can protect themselves and their customers from falling victim to these sophisticated schemes.