Financial Crime World

Here is the converted article in markdown format:

Grenada Faces Concerns Over Money Laundering and Terrorist Financing

A recent evaluation report by the Caribbean Financial Action Task Force (CFATF) has raised concerns over Grenada’s ability to effectively combat money laundering (ML) and terrorist financing (TF).

Weaknesses in Grenada’s AML/CFT Framework

The report, which assessed Grenada’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework, highlighted several weaknesses in the country’s system. One major concern is that ML investigations are primarily related to predicate offenses such as fraud and theft, with drug trafficking-related cases rarely resulting in ML investigations.

Confiscation and Forfeiture Powers

The report also noted that while Grenada has a wide range of confiscation and forfeiture powers, there have been no confiscations or forfeitures of assets linked to TF or proliferation financing (PF). Additionally, the country’s legal framework for implementing TF measures is fundamentally weak, with no mechanism in place for identifying and proposing targets for designation.

Non-Profit Organizations

Furthermore, the report expressed concerns over Grenada’s risk assessment of its non-profit organizations (NPOs), which are not subject to a targeted risk-based supervision approach. As a result, NPOs do not have a clear understanding of the TF risks posed to their sector, although they receive general guidance from the AML/CFT Commission and the Financial Intelligence Unit.

Preventive Measures

The report also highlighted deficiencies in Grenada’s preventive measures, including varying levels of understanding of AML/CFT legal obligations among financial institutions (FIs) and designated non-financial businesses or professions (DNFBPs). While some FIs have demonstrated a good understanding of their obligations, others lack enforceable policies and procedures.

Recommendations

The CFATF report has recommended that Grenada address these weaknesses to strengthen its AML/CFT framework. The country has been given until 2025 to implement the necessary reforms.

Key Recommendations:

  • Strengthen ML investigations by increasing the number of cases related to drug trafficking offenses.
  • Improve TF risk assessment and implement a targeted risk-based supervision approach for NPOs.
  • Develop a legal framework for implementing TF measures, including designations and asset freezing.
  • Enhance preventive measures by ensuring all FIs and DNFBPs have enforceable policies and procedures in place.

Grenada has been given until 2025 to implement these recommendations to ensure its AML/CFT framework is effective in combating ML and TF.