Grenada Enacts Stringent Anti-Money Laundering Regulations

The Government of Grenada has taken a significant step in cracking down on financial crimes by enacting the Registration of Supervised Entities Act No. 12 of 2023, mandating specified persons engaged in Other Business Activities to register with the Financial Intelligence Authority (FIA). This move aims to strengthen the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Regional Efforts to Combat Money Laundering

The Caribbean Financial Action Task Force (CFATF), a regional body, has been at the forefront of efforts to combat money laundering in the region. With 25 member countries from the Caribbean and South America, CFATF is working tirelessly to ensure that its members adhere to international standards on AML/CFT.

Key Components of Grenada’s Anti-Money Laundering Regulations

“Knowing Your Customer” (KYC) Principle

Financial institutions and certain business activities are required to conduct thorough customer due diligence or background checks to prevent money laundering and other financial crimes. The KYC principle is seen as a vital tool in the fight against money laundering, as it enables financial institutions to identify potential risks and take necessary measures to mitigate them.

Registration Requirement

Specified persons engaged in Other Business Activities are required to register with the Financial Intelligence Authority (FIA). This registration requirement is a significant step forward for Grenada’s anti-money laundering regime, ensuring that its financial system is robust and resistant to criminal activities.

Conclusion

The registration requirement and the emphasis on knowing your customer are significant steps forward for Grenada’s anti-money laundering regime. As a result, businesses operating in Grenada can expect increased scrutiny and regulation in the coming months. The country’s authorities are leaving no stone unturned in their efforts to ensure that its financial system is secure and resistant to criminal activities.