Financial Crime World

Grenada’s Anti-Money Laundering and Terrorist Financing Guidelines: A Media Report

Introduction

The Grenadian government has introduced new guidelines to combat money laundering and terrorist financing, aimed at regulating non-profit organizations, charities, and associations.

Guidelines Overview

These guidelines prohibit entities from engaging in activities that support or divert funds to terrorist organizations or criminal groups. They must also conduct rigorous due diligence measures to ensure that donations do not come from illegal sources. In addition, non-profit organizations are required to report any suspicious activity related to money laundering or terrorist financing to the Financial Intelligence Unit (FIU).

Key Provisions

  • Donation Limitations: Non-profit organizations must ensure that donations do not exceed $10,000 per year from a single donor.
  • Enhanced Due Diligence: If a donation exceeds this amount, the organization must carry out enhanced due diligence measures to verify the source of funds.
  • Record-Keeping: Charities and associations must establish clear records of their donors, including:
    • True identity
    • Occupation
    • Source of wealth

Importance of Compliance

The guidelines emphasize the importance of compliance with these regulations. Non-profit organizations and professionals must fully adhere to the minimum standards set forth in the guidelines. However, entities may adopt higher standards and systems of internal controls if they deem it necessary to reduce or mitigate identified risks related to money laundering and terrorist financing.

FIU Responsibilities

The FIU has been tasked with:

  • Keeping a record of all reports received concerning suspicious activity related to money laundering and terrorist financing.
  • Acknowledging receipt of each report in writing and assigning it to an investigating officer for further action.

Conclusion

Grenada’s anti-money laundering and terrorist financing guidelines aim to ensure that non-profit organizations and charities do not inadvertently support illegal activities. By implementing these regulations, the government is taking a proactive step towards preventing the misuse of funds and promoting transparency and accountability in the non-profit sector.