Financial Crime World

Grenada’s Financial Intelligence Unit: Cracking Down on Money Laundering and Financial Crimes

Role of the Financial Intelligence Unit (FIU) in Grenada

The Financial Intelligence Unit (FIU), located in Grenada, plays a crucial role in the country’s battle against financial crimes, including money laundering and terrorist financing. The organization’s responsibilities are diverse:

Functions of the FIU:

  1. Receiving, retaining, and analyzing Suspicious Transaction Reports (STRs) and other relevant information to identify potential financial crimes.
  2. Seizing proceeds of crime.
  3. Informing financial and business institutions about their duties to detect, prevent, and deter money laundering and terrorist financing.
  4. Investigating matters arising from STRs, money laundering, terrorist financing, and other financial crimes.

Investigative Powers of the FIU

The Head of the FIU wields considerable investigative powers. When they suspect that a crime may have been committed or the proceeds of crime are in Grenada or abroad, they can:

  1. Request additional information from a financial institution or listed business.
  2. Submit reports to relevant law enforcement agencies for further investigation to determine whether a money laundering offense has been committed or if the proceeds of crime are in Grenada or abroad.

Cooperation and Liaisons

In pursuit of its mandate, the FIU also collaborates and liaises with various parties:

  • OECS Central Bank
  • Other government agencies
  • Relevant treaty partners

These partnerships help to facilitate information sharing and ensure effective investigation of financial crimes.

Obligations for Financial and Business Institutions

Financial and business institutions, relevant businesses, designated non-financial businesses, and professions have an obligation to comply with the Proceeds of Crime Act and the Supervisory Authority’s guidelines. These guidelines necessitate:

  1. Monitoring transactions and reporting suspicious ones to the FIU.
  2. Verifying customers’ identities.
  3. Maintaining effective record-keeping.
  4. Developing and implementing a compliance program, including:
    • Internal controls
    • Independent testing
    • Staff training
    • The appointment of a compliance officer

Failure to comply with these regulations can result in significant penalties. By adhering to these guidelines, Grenada’s financial sector remains a secure and vigilant guard against financial crimes.