Grenada’s Financial Institutions Under Scrutiny for Anti-Money Laundering Measures

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A recent report by the Financial Action Task Force (FATF) has evaluated the efforts of Grenada’s financial institutions in preventing money laundering and terrorist financing. The country received ratings reflecting its compliance with the FATF Recommendations, a set of standards aimed at combating these illicit activities.

Key Areas of Strength

Grenada scored well in several areas, including:

Assessing risk and applying a risk-based approach (R.1)
National cooperation and coordination (R.2)
Confiscation and provisional measures (R.4)
Combating terrorist financing offenses (R.5)
Targeted financial sanctions related to terrorism and proliferation (R.6 and R.7)

Areas for Improvement

However, Grenada fell short in several key areas, including:

Customer due diligence (R.10)
Record keeping (R.11)
Reliance on third parties (R.17)
Financial institution secrecy laws (R.9) were deemed compliant, but the report highlighted the need for improvement in transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25).
Regulation and supervision of financial institutions (R.26)

Call to Action

Grenada’s authorities have been urged to address these shortcomings to prevent money laundering and terrorist financing from taking root in the country.

Importance of FATF Recommendations

The FATF Recommendations provide a framework for countries to implement effective anti-money laundering measures, ensuring that their financial systems are not exploited by criminals. The ratings assigned to each country reflect its progress in implementing these standards.

Conclusion

Grenada’s partial compliance with several of the FATF Recommendations serves as a wake-up call for its authorities to strengthen their efforts and ensure that the country’s financial institutions are adequately equipped to detect and prevent money laundering and terrorist financing activities.