Financial Crime World

Grenada Fails to Seize Instrumentalities Linked to Drug Trafficking Offenses

A recent evaluation by international authorities has revealed that Grenada has failed to confiscate instrumentalities linked to drug trafficking offenses, despite concerns over the country’s vulnerability to such activities.

Lack of Confiscations and Investigations

  • There is no evidence of subsequent Money Laundering (ML) investigations conducted in relation to these drug trafficking matters.
  • A single civil recovery matter started in 2016 but remained inconcluded at the time of the evaluation.
  • The jurisdiction has not fully utilized the Proceeds of Crime Act (POCA) law to deprive criminals of their ill-gotten gains.
  • There were no confiscations of falsely or undeclared cross-border movements of currency or Bulk Cash Transactions (BCTs).

Terrorist Financing Concerns

  • Grenada believes it has no evidence of Terrorism, Terrorist Financing (TF), or Proliferation Financing (PF).
  • However, this lack of awareness has placed Grenada at a medium-low level of vulnerability to TF.
  • The Royal Grenada Police Force (RGPF) has designated a TF desk at Special Branch but lacks specialized TF training for potential analysis and investigations.
  • Grenada’s legal framework for implementing Terrorism Financing Sanctions (TFS) lacks mechanisms for identifying and proposing targets for designations, as well as freezing assets without delay.
  • Non-Profit Organizations (NPOs) are required to register with the Financial Intelligence Unit (FIU) and Anti-Money Laundering/Combating the Financing of Terrorism Commission, but there is no risk-based supervisory approach in place.

No Laws to Address Proliferation Financing

  • Grenada does not have any laws or measures in place to address PF, despite being under international obligation to do so.
  • While some Financial Institutions (FIs) and Designated Non-Financial Businesses and Professions (DNFBPs) are aware of the international obligations, there is a need for enhanced legal framework and implementation.

Preventive Measures

  • Some FIs in the sector have demonstrated better understanding of their Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) legal obligations, but others lack sufficient knowledge.
  • There is a high level of compliance resources available, but inconsistent application across the DNFBP sector.

Conclusion

Grenada’s failure to confiscate instrumentalities linked to drug trafficking offenses and its weak legal framework for implementing TFS pose significant concerns over the country’s ability to combat ML/TF/PF effectively. The jurisdiction must take immediate action to address these deficiencies and ensure a robust and effective AML/CFT regime is in place.