Grenada’s AML/CTF Regulations Fall Short in Key Areas, Report Finds

A recent report evaluating Grenada’s implementation of anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations has revealed several areas of concern. The report, released by a leading financial institution, graded Grenada’s compliance with international standards, finding significant gaps in its regulatory framework.

Key Findings

• Grenada is partially compliant in 15 out of 40 key areas, including:
  • Assessing risk and applying a risk-based approach (R.1)
  • Targeting financial sanctions related to terrorism and terrorist financing (R.6)
  • Regulating and supervising financial institutions (R.26)
• The country falls short in several critical areas, such as:
  • Confiscation and provisional measures (R.4)
  • Reporting of suspicious transactions (R.20)

Areas of Strength

• Grenada is largely compliant with several key recommendations, including:
  • National cooperation and coordination (R.2)
  • Money laundering offence (R.3)
  • Financial intelligence units (R.29)
• The country also receives a compliant rating for its regulation and supervision of non-profit organizations (R.8) and transparency and beneficial ownership of legal persons (R.24)

Recommendations for Improvement

• Strengthening measures to prevent the financing of terrorism and terrorist financing
• Improving international cooperation in the fight against money laundering and terrorist financing
• Enhancing the country’s financial intelligence unit

Conclusion

While Grenada has made some progress in implementing AML/CTF regulations, there is still much work to be done to bring the country into full compliance with international standards. The report’s findings serve as a wake-up call for policymakers and regulators, emphasizing the need for swift action to strengthen the country’s financial regulatory framework.