Financial Crime World

Grenada Takes Step to Combat Money Laundering and Terrorism Financing with Approval of Four Pieces of Legislation

The Grenadian government has made a significant move towards combating money laundering and terrorism financing by approving four pieces of legislation recommended by the Caribbean Financial Action Task Force (CFATF) in its 2022 Fourth Round Mutual Evaluation Report.

Strengthening Anti-Money Laundering and Combating Terrorism Financing Measures

The approved legislations aim to enhance Grenada’s anti-money laundering and combating terrorism financing (AML/CTF) measures by strengthening the country’s legislative framework. The four bills are:

  • Customs (Amendment) Bill: This bill seeks to amend the Customs Act of 2015 to require the Comptroller of Customs to file a Suspicious Activity Report with the Financial Intelligence Unit for any suspicious transactions. Additionally, the bill mandates that the Comptroller maintain records of transactions under the act for a minimum of five years.
  • Friendly Societies (Amendment) Bill and Co-operative Societies (Amendment) Bill: These bills require public scrutiny and examination of the names of all members of these entities, in line with CFATF’s recommendation to make public information on the creation of friendly societies, building societies, cooperatives, and legal arrangements.
  • Exchange Control (Amendment) Bill: This bill seeks to create an obligation for the retention of records of transactions conducted under this legislation, requiring the Permanent Secretary or competent authority to retain each record obtained or created for a minimum period of five years.

Enhancing AML/CTF System

These amendments are expected to enhance Grenada’s AML/CTF system and bring it in line with international standards. The CFATF report also recommended that Grenada address technical compliance deficiencies and develop widely known mechanisms to facilitate the verification of beneficial ownership information.

  • Identify, Assess, and Understand Vulnerabilities: The government has been urged to identify, assess, and understand vulnerabilities in the country’s legal persons and legal arrangements, and implement mitigating measures to prevent their misuse for money laundering and terrorism financing purposes.
  • Verification of Beneficial Ownership Information: The CFATF report recommended that Grenada develop widely known mechanisms to facilitate the verification of beneficial ownership information.

Implementation and Effectiveness

The approved legislations will become law once they receive the stamp of approval from the Office of the Governor-General, are published in the Government Gazette, and given a date of effect. These amendments are expected to enhance Grenada’s AML/CTF system and bring it in line with international standards, ultimately helping to combat money laundering and terrorism financing.