Financial Crime World

Grenada’s Financial Institutions Face Scrutiny on Anti-Money Laundering Measures

A recent report by the Financial Action Task Force (FATF) has revealed that Grenada’s financial institutions are only partially compliant with anti-money laundering regulations, sparking concerns about their ability to prevent illicit financial activities.

Key Findings

The FATF report highlighted several areas where Grenada needs improvement, including:

  • Confiscation and provisional measures related to money laundering (R.4)
  • Terrorist financing offence (R.5)
  • Targeted financial sanctions related to terrorism and terrorist financing (R.6)

On the other hand, the country received high ratings for its assessment of risk and application of a risk-based approach (R.1) and national cooperation and coordination (R.2). Grenada was also commended for its efforts in implementing measures to prevent money or value transfer services from being used for illicit purposes (R.14).

Areas Requiring Improvement

Several areas require significant improvement, including:

  • Regulation and supervision of non-profit organisations (R.8)
  • Transparency and beneficial ownership of legal persons (R.24) and legal arrangements (R.25)
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs) (R.28)

Progress in Preventing Terrorist Financing

The report also noted that Grenada has made significant progress in implementing measures to prevent terrorist financing, including targeted financial sanctions related to terrorism and terrorist financing (R.6).

Consequences of Non-Compliance

The FATF’s evaluation of Grenada’s anti-money laundering measures is a critical step in ensuring the country’s financial institutions are equipped to detect and prevent illicit activities. The report’s findings will likely lead to increased scrutiny from international partners and investors.

Grenada has 12 months to address the deficiencies identified by the FATF, or it risks being placed on the agency’s list of jurisdictions with strategic AML/CFT deficiencies. The country’s financial institutions must take immediate action to ensure compliance with anti-money laundering regulations and prevent illicit activities.

Conclusion

In conclusion, Grenada’s financial institutions face scrutiny on their anti-money laundering measures. To address these concerns, significant improvements are needed in several areas, including regulation and supervision of non-profit organisations, transparency and beneficial ownership of legal persons, and regulation and supervision of designated non-financial businesses and professions. The country must take immediate action to ensure compliance with anti-money laundering regulations and prevent illicit activities.