Financial Crime World

Grenada’s Efforts to Prevent Money Laundering Under Scrutiny

A recent report by the Financial Action Task Force (FATF) has evaluated Grenada’s efforts to prevent money laundering and terrorist financing, highlighting both progress and areas for improvement.

Mixed Assessment

The FATF Mutual Report 2022 found that Grenada has implemented some measures to combat money laundering, but there is still room for improvement. The country was partially compliant with several recommendations, while struggling to meet the standards set by others.

Compliance Status

Here are the key findings:

  • Partially Compliant: Recommendations R.1 (risk assessment and risk-based approach), R.2 (national cooperation and coordination), R.5 (terrorist financing), and R.8 (non-profit organizations)
  • Non-Compliant: Recommendations R.3 (criminalization of money laundering), R.9 (financial institution secrecy laws), and R.38 (mutual legal assistance)

Progress in Certain Areas

Grenada has made progress in implementing measures to prevent money laundering in the following areas:

  • Record Keeping (Recommendation R.11): The country has implemented effective record-keeping systems for financial institutions.
  • Correspondent Banking (Recommendation R.13): Grenada has taken steps to prevent terrorist financing through correspondent banking relationships.

Areas for Improvement

The report highlights several areas where Grenada needs to improve:

  • Criminalization of Money Laundering: The country must criminalize money laundering and its related activities.
  • Financial Institution Secrecy Laws: Grenada’s financial institution secrecy laws do not meet international standards.
  • Mutual Legal Assistance: The country must improve its ability to provide mutual legal assistance in anti-money laundering investigations.

Conclusion

While Grenada has made progress in implementing anti-money laundering measures, there are still significant gaps that need to be addressed. The country is urged to continue working towards full compliance with FATF’s Recommendations to maintain its reputation as a responsible financial jurisdiction.