Financial Crime World

Grenada’s Risk Assessment in Financial Services Under Scrutiny

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The financial services sector in Grenada has come under scrutiny as part of the country’s efforts to comply with international standards on anti-money laundering and combating terrorist financing. The latest report from the Financial Action Task Force (FATF) has shed light on Grenada’s risk assessment practices, highlighting areas that require improvement.

Areas of Compliance

According to the report, Grenada scored highly in several key areas, including:

  • R.1 - Assessing Risk and Applying a Risk-Based Approach: The country was found to be compliant with international standards.
  • R.10 - Customer Due Diligence: Grenada demonstrated significant progress and was deemed largely compliant.

Areas for Improvement

However, Grenada faced challenges in other areas, including:

  • R.20 - Reporting of Suspicious Transactions: The country was found to be non-compliant.
  • R.38 - Mutual Legal Assistance: Freezing and Confiscation: Grenada was deemed partially compliant.

Key Risks Facing the Financial Services Sector

The report highlighted several key risks facing Grenada’s financial services sector, including:

  • Money laundering and terrorist financing through cash couriers
  • Correspondent banking

Cooperation with International Partners

The report also identified areas where Grenada needs to improve its cooperation with international partners, including:

  • Sharing of financial intelligence
  • Provision of mutual legal assistance

Response to the Report’s Findings

In response to the report’s findings, Grenada has committed to implementing a range of reforms aimed at strengthening its anti-money laundering and combating terrorist financing regime. The country has pledged to:

  • Enhance customer due diligence procedures
  • Improve reporting of suspicious transactions
  • Increase cooperation with international partners

Conclusion

The FATF report is an important tool for helping countries identify areas where they need to improve their risk assessment practices and take steps to strengthen their financial systems. By working closely with the international community, Grenada can help ensure that its financial services sector is a safe and secure place for businesses and individuals to operate.