Grenada’s Anti-Money Laundering Laws Receive Mixed Review from International Watchdog

A recent report by the Financial Action Task Force (FATF) has highlighted both strengths and weaknesses in Grenada’s anti-money laundering (AML) laws, sparking concerns about the island nation’s ability to prevent financial crimes.

Key Findings

• The report identified significant areas of non-compliance with international AML standards, including:
  • Lack of effective measures to prevent misuse of shell companies
  • Inadequate supervision of financial institutions
  • Failure to confiscate assets linked to money laundering and terrorist financing offenses
• Despite these weaknesses, the report praised Grenada’s progress in implementing certain AML requirements, such as:
  • Assessment of risk
  • Application of a risk-based approach
  • Regulation and supervision of financial institutions
  • Cooperation with international authorities on mutual legal assistance and extradition

Concerns and Recommendations

• The FATF report has raised concerns about Grenada’s ability to prevent money laundering and terrorist financing, which could have serious consequences for the country’s financial system and reputation.
• The government has been urged to take immediate action to address the weaknesses identified in the report and bring its AML laws into line with international standards.

Response from Grenada Financial Intelligence Unit (FIU)

• In a statement, the FIU acknowledged the findings of the report and committed to working closely with international partners to strengthen the country’s AML regime.
• The FIU emphasized its ongoing efforts to enhance financial transparency and improve cooperation with law enforcement authorities.

Accessing the Report

The full FATF report can be accessed on the FATF website, where it provides a detailed assessment of Grenada’s anti-money laundering laws and practices.