Grenada Falls Short on Banking Compliance Regulations
A recent assessment has revealed that Grenada has made significant strides in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, but still faces several challenges. The country received a mixed bag of ratings from the Financial Action Task Force (FATF), with some areas showing improvement while others require further attention.
Strengths
Grenada was found to be “largely compliant” in several key areas, including:
- Assessing risk and applying a risk-based approach
- National cooperation and coordination
- Targeted financial sanctions related to terrorism and terrorist financing
The country also received positive ratings for its efforts in implementing measures to prevent the misuse of non-profit organizations and correspondent banking.
Weaknesses
However, Grenada was found to be “partially compliant” in several areas, including:
- Confiscation and provisional measures
- Terrorist financing offence
- Customer due diligence
Additionally, the country was deemed “non-compliant” in a few key areas, such as:
- Transparency and beneficial ownership of legal persons and arrangements
- Regulation and supervision of DNFBPs (Designated Non-Financial Businesses and Professions)
- Statistics
Challenges
The assessment also highlighted some areas where Grenada is struggling to keep pace with international standards. The country’s efforts to implement measures to prevent the misuse of new technologies and higher-risk countries were found to be inadequate, while its reporting of suspicious transactions and transparency in beneficial ownership were deemed insufficient.
Progress and Efforts
Despite these challenges, Grenada has made significant progress in recent years, and officials are working to address the outstanding issues. The country’s financial intelligence unit and law enforcement agencies have also been praised for their efforts in combating money laundering and terrorist financing.
Conclusion
While Grenada still faces several challenges in implementing banking compliance regulations, the country is making progress towards meeting international standards. Further efforts are needed to address the outstanding issues and ensure that the country’s financial system remains resilient against money laundering and terrorist financing threats.