Financial Crime World

Grenada’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Under Scrutiny

A recent evaluation by the Caribbean Financial Action Task Force (CFATF) has highlighted several concerns regarding Grenada’s efforts to combat money laundering (ML) and terrorist financing (TF).

Investigation and Enforcement

The report highlights that while Grenada has demonstrated its capacity to investigate complex ML cases, there is a lack of routine investigations into ML matters related to drug trafficking offenses. Additionally, the jurisdiction does not use the full extent of its powers under the Proceeds of Crime Act to deprive criminals of the instrumentalities of their crime.

  • Lack of routine investigations into ML matters related to drug trafficking offenses
  • Insufficient use of powers under the Proceeds of Crime Act

Terrorist Financing Risk Assessment and Mitigation

The CFATF expressed concerns about the comprehensiveness of Grenada’s TF risk assessment, stating that the country’s vulnerability to TF is rated as “medium-low” due to a lack of evidence of terrorist activity. However, the report noted that the Royal Grenada Police Force (RGPF) has designated a TF desk at Special Branch, but there is a need for specialized TF training for potential TF analysis and investigations.

  • Lack of comprehensive TF risk assessment
  • Need for specialized TF training for law enforcement agencies

The report highlighted fundamental weaknesses in Grenada’s legal framework for implementing TF measures under United Nations Security Council Resolutions (UNSCRs) 1267 and 1373. The country does not have mechanisms in place for identifying and proposing targets for designation or freezing assets without delay.

  • Lack of legal framework for implementing TF measures under UNSCRs
  • No mechanism for identifying and proposing targets for designation or freezing assets

Non-Profit Organizations and Supervision

The CFATF criticized Grenada’s approach to non-profit organizations (NPOs), stating that while NPOs are required to register with the Financial Intelligence Unit (FIU) and the Anti-Money Laundering/Combating the Financing of Terrorism Commission, there is no risk-based supervisory approach in place. As a result, NPOs do not have a clear understanding of the TF risk posed to their sector.

  • Lack of risk-based supervisory approach for NPOs
  • No clear understanding of TF risk posed to NPOs

Proliferation Financing

The report also noted that Grenada does not have any laws or measures in place to address proliferation financing (PF). While some financial institutions and designated non-financial businesses and professions (DNFBPs) were aware of international obligations related to PF, there was no evidence of implementation of TF measures concerning UNSCRs relating to the combatting of PF.

  • Lack of laws or measures to address PF
  • No implementation of TF measures concerning UNSCRs on PF

Conclusion

The CFATF evaluation highlights several areas where Grenada needs to improve its efforts to combat ML and TF. The jurisdiction must address these concerns to ensure that it is meeting its international obligations and protecting its financial system from criminal activity.

  • Address lack of routine investigations into ML matters
  • Improve comprehensiveness of TF risk assessment
  • Strengthen legal framework for implementing TF measures
  • Implement risk-based supervisory approach for NPOs
  • Develop laws and measures to address PF