Grenada Enacts Tough Laws to Combat Money Laundering

Introduction

The Government of Grenada has passed the Money Laundering (Prevention) Act, a significant legislation aimed at combating money laundering and other financial crimes in the country.

Key Provisions

• Suspicious Transaction Reporting: Financial institutions are required to report any suspicious transactions.
• Cash Declaration Limit: The use of cash or negotiable bearer instruments exceeding $100,000 without declaration is prohibited.
• Consequences for Non-Compliance: Failure to comply can result in a fine of up to $250,000 or imprisonment for five years.

Extradition and Cooperation

• Extraditable Offence: Money laundering is an extraditable offence, allowing Grenada to cooperate with foreign states in investigations and prosecutions related to financial crimes.
• International Cooperation: The legislation enables Grenada to work with other countries to combat money laundering and other financial crimes.

Additional Measures

• Secrecy Obligations: Secrecy obligations can be overridden in cases where information is needed to combat money laundering.
• Prosecution Limitation Period: A six-year limitation period for prosecutions related to money laundering offences is established.
• Regulations: The Minister of Finance will make regulations under the Act, which may extend the application of other laws to enable cooperation with foreign states.

Conclusion

The Money Laundering (Prevention) Act is a major step forward in Grenada’s efforts to combat financial crime and maintain its reputation as a stable and secure financial hub. The government is committed to ensuring that the country’s financial system is safe and secure, and this legislation will help achieve that goal.