Finance Ministry Considers Revoking Licence of Financial Institution over Employee’s Criminal Record

The Finance Ministry in Grenada is considering revoking the licence of a financial institution that employs an individual with a criminal record. This decision comes after it was discovered that an employee or officer of the institution had been convicted of an indictable offence or failed to disclose a conviction at the time of their application for the licence.

Money Laundering Prevention Act

According to sources within the ministry, the decision is based on the Money Laundering (Prevention) Act, Chapter 197A. This act states that if an employee or officer of a financial institution is convicted of an indictable offence or fails to disclose a conviction, the ministry can revoke their licence.

Conviction Disclosure Requirements

The act also requires financial institutions to declare any convictions, whether in Grenada or elsewhere, at the time of their application for a licence. This means that financial institutions must thoroughly vet their employees and officers before employing them.

Currency Declaration Act

In addition to revoking licences, the ministry is also cracking down on individuals who leave Grenada with large amounts of cash without declaring it. The Currency Declaration Act states that anyone leaving the island with over $100,000 in cash or negotiable bearer instruments must declare it to the Supervisory Authority.

Consequences of Non-Compliance

Failure to comply with these regulations can result in fines and imprisonment.

Strengthening Cooperation with Foreign States

The ministry is also working to strengthen its cooperation with foreign states to combat money laundering and other financial crimes. This includes sharing information and best practices to prevent and detect financial crimes.

Recent Developments

In related news, the Director of Public Prosecutions has announced that all offences under the Money Laundering (Prevention) Act will be tried on indictment unless otherwise directed by the Director or provided for in the act.

The ministry is urging all financial institutions to comply with the regulations and report any suspicious transactions to the Supervisory Authority.

Regulations Made Under the Act

Regulations made under the Money Laundering (Prevention) Act can extend the application of other acts to enable Grenada to take appropriate measures to cooperate with foreign states in matters concerning or relating to money laundering. These regulations are subject to negative resolution by the House of Representatives and may include fines and imprisonment for non-compliance.

Penalties for Non-Compliance

The act also provides that a person who commits an offence under the act for which no penalty is specified shall be liable, on summary conviction, to a fine of $250,000 or imprisonment for five years, or both.