Financial Crimes Unmasked: Grenada’s Financial Intelligence Unit (FIU) Tackles Money Laundering and Terrorist Financing

Amidst increasing concerns over financial crimes, Grenada’s Financial Intelligence Unit (FIU) plays a crucial role in safeguarding the nation’s financial system. In this article, we delve into the key functions and powers of this vital agency.

Key Functions of the FIU

1. Suspicious Transaction Reports (STRs) The FIU receives, retains, and meticulously analyzes STRs from financial institutions and designated businesses.

   • Transactions flagged as suspicious
   • Indicative of money laundering or terrorist financing

2. Information Collection The FIU collects any other relevant information related to its functions to facilitate comprehensive investigations.

3. Seizure of Proceeds of Crime The agency can seize the proceeds of criminal activity when necessary.

4. Advisory Services The FIU informs financial and business institutions of their obligations regarding the detection, prevention, and deterrence of money laundering and terrorist financing.

5. Investigations In cases arising from suspicious transaction reports, money laundering, terrorist financing, and other financial crimes, the FIU conducts thorough investigations.

Powers of the FIU

When the Head of the FIU reasonably suspects that a suspected offense has been or may be committed, or the proceeds of crime may be present in Grenada or elsewhere, they can:

1. Request Further Information The FIU may demand additional information from financial institutions or designated businesses to support its analysis or evaluation.

2. Report to Law Enforcement Agencies Once the FIU concludes its analysis or evaluation, and circumstances warrant further investigation, a report is submitted to the relevant law enforcement authority for pursuit of possible money laundering offenses.

Cooperation and Collaboration

In executing its functions, the FIU may co-operate and liaise with:

1. OECS Central Bank and Government Agencies Collaboration with the Central Bank and other Grenadian institutions ensures synergy in financial crime investigations.

2. International Authorities The FIU can work with specified international authorities, according to cooperative treaties.

3. Assisting Individuals The Head of the FIU may engage with any person whom they believe can contribute to the provision of valuable intelligence or other relevant information.

Obligations of Financial and Business Institutions

Financial institutions, relevant businesses, designated non-financial entities, and professions are required by law to:

1. Monitor Transactions Regularly scrutinize transactions for signs of suspicious activity and report such instances to the FIU.

2. Customer Identity Verification Ensure customer identities are accurately established through appropriate due diligence and identification checks.

3. Record Keeping Maintain effective records that can support transactional information and comply with regulatory requirements.

4. Internal Controls Develop and implement systems and processes to ensure ongoing compliance with relevant financial regulations.

5. Regular Testing Institutions must undergo regular internal and external testing to evaluate their ongoing compliance and address any identified weaknesses.

6. Staff Training Provide continuous training to personnel on money laundering and terrorist financing risk identification and reporting procedures.

7. Compliance Officer Appoint a dedicated compliance officer responsible for the oversight and maintenance of financial crime prevention measures.