Financial Crime World

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Grenada’s Fight Against Money Laundering and Terrorist Financing: A Mixed Bag

A recent report by the Caribbean Financial Action Task Force (CFATF) has revealed that Grenada has made progress in its efforts to combat money laundering (ML) and terrorist financing (TF), but also identified several areas of concern.

Progress Made

The report notes that investigators within the Financial Intelligence Unit (FIU) have received continuous training in ML investigation, and the jurisdiction has demonstrated its capacity to investigate complex ML cases. Additionally, there is routine use of cash forfeiture and forfeiture of property provisions by law enforcement agencies.

Areas of Concern

However, the report highlights that drug trafficking offenses have not routinely resulted in ML investigations, and there were no TF investigations or prosecutions during the reporting period. Furthermore, the jurisdiction’s legal framework for implementing TF measures is found to be lacking, with concerns about the comprehensiveness of Grenada’s TF risk assessment.

Non-Profit Organizations

The report also notes that non-profit organizations (NPOs) are required to register with the FIU and the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Commission, but there is no risk-based supervisory approach in place. As a result, NPOs do not have a clear understanding of the TF risk posed to the sector.

Financial Institutions

On a positive note, some financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) were found to be aware of international obligations and regularly referred to the United Nations Security Council’s Consolidated List when on-boarding new customers.

Key Findings

  • Investigators within the FIU have received continuous training in ML investigation.
  • Grenada has demonstrated its capacity to investigate complex ML cases.
  • There were no TF investigations or prosecutions during the reporting period.
  • The jurisdiction’s legal framework for implementing TF measures is lacking.
  • NPOs do not have a clear understanding of the TF risk posed to the sector.
  • Some FIs and DNFBPs are aware of international obligations and regularly refer to the United Nations Security Council’s Consolidated List when on-boarding new customers.

Recommendations

  • Strengthen the legal framework for implementing TF measures.
  • Implement a risk-based supervisory approach to NPOs.
  • Provide clear guidance to NPOs on TF risks and mitigation measures.
  • Enhance oversight of DNFBPs to ensure effective implementation of AML/CFT measures.