Grenada’s Vessels and Motor Vehicles Linked to Drug Trafficking Offences Under Scrutiny

A recent investigation has uncovered concerns over the island nation of Grenada’s handling of vessels and motor vehicles linked to drug trafficking offences. Despite reports of numerous instances, there is no evidence to suggest that subsequent Money Laundering (ML) investigations were conducted.

Lack of Civil Recovery Matters

In a shocking revelation, authorities revealed that there was only one civil recovery matter initiated in 2016, which has yet to be concluded. Moreover, the jurisdiction failed to utilize the full extent of the Proceeds of Crime Act (POCA) law to deprive criminals of their ill-gotten gains, including the confiscation of falsely or undeclared cross-border currency movements.

Terrorist Financing and Proliferation Financing Concerns

Experts are also raising red flags over Grenada’s comprehensiveness in assessing its risk of terrorist financing. The country claims there is no evidence of terrorism, terrorist financing (TF), or proliferation financing (PF) on the island, which has led to a perceived vulnerability to TF being classified as medium-low.

Weaknesses in Risk Assessment

However, authorities have designated a TF desk at Special Branch, but specialized training for potential TF analysis and investigations remains lacking.

Lack of Legal Framework for Anti-Terrorism Sanctions

Grenada’s legal framework for implementing anti-terrorism sanctions is also under scrutiny. The country lacks mechanisms for identifying and proposing targets for designation pursuant to United Nations Security Council Resolution (UNSCR) 1267 and its successor resolutions, or for identifying targets pursuant to UNSCR 1373.

Non-Profit Organizations at Risk

The non-profit organization (NPO) sector is also under the microscope, with concerns that it may be misused for terrorist financing. Despite being required to register with the Financial Intelligence Unit (FIU) and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Commission, a risk-based supervisory approach has not been adopted.

No Laws or Measures in Place for Proliferation Financing

Shockingly, Grenada has failed to implement laws or measures to address proliferation financing. The country’s failure to comply with UNSCRs relating to the combating of PF is a significant concern.

Awareness Among Financial Institutions and DNFBPs

However, some financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) are aware of their international obligations and regularly refer to the United Nations Security Consolidated List when onboarding new customers as a matter of course.