Financial Crime World

Title: “Grenada’s Challenges in Combating Financial Crime and Terrorism Financing: A FATF Report”

The Financial Action Task Force (FATF) has released its Mutual Evaluation Report on Grenada’s progress in implementing the organization’s recommendations to counteract financial crime and terrorism financing. This report highlights the island nation’s strengths and weaknesses in various areas:

FATF Recommendations and Evaluation

The assessment covers a total of 40 Recommendations, with ratings ranging from Compliant (C), Largely Compliant (LC), Partially Compliant (PC), and Non-Compliant (NC).

Grenada’s Progress by Recommendation

Risk Assessment and Risk-based Approach (R.1)

  • Rating: Partially Compliant (PC)
  • Progress: Grenada has made progress but still needs improvement in fully integrating a risk-based approach into its financial system.

National Cooperation and Coordination (R.2)

  • Rating: Largely Compliant (LC)
  • Progress: Cooperation and coordination among relevant authorities have been identified as robust but further enhancements are needed.

Money Laundering Offence (R.3)

  • Rating: Compliant (C)
  • Progress: Legislation addressing money laundering offenses is in place and functioning adequately.

Please find below the remaining recommendations and their respective ratings/progress with bulleted points:

Confiscation and Provisional Measures (R.4)

  • Rating: Largely Compliant (LC)
  • Progress: Sufficient progress has been made, but Grenada could increase its efforts in implementing and enforcing these measures effectively.

Terrorist Financing Offense (R.5)

  • Rating: Partially Compliant (PC)
  • Progress: Grenada has taken some steps in addressing terrorist financing offenses, but more needs to be done to ensure full compliance with FATF Recommendations.

Targeted Financial Sanctions Related to Terrorism & Terrorist Financing (R.6, R.7)

  • Rating: Non-Compliant (NC)
  • Progress: Grenada has not yet implemented the necessary legal framework to effectively implement targeted financial sanctions for terrorist financing listed entities and similar challenges exist with respect to proliferation-related entities.

…

Designated Non-Financial Business and Professions (DNFBPs): Customer Due Diligence (R.22)

  • Rating: Partially Compliant (PC)
  • Progress: Grenada must improve its approach to DNFBPs, including better regulation, supervision, and enforcement to ensure proper customer due diligence.

Designated Non-Financial Business and Professions: Other Measures (R.23)

  • Rating: Partially Compliant (PC)
  • Progress: Grenada should implement additional measures to prevent the misuse of DNFBPs for money laundering and terrorist financing.
  • Rating: Not Compliant (NC)
  • Progress: Grenada’s lack of transparency in beneficial ownership registration remains a significant challenge.
  • Rating: Not Compliant (NC)
  • Progress: Similar concerns have been raised with respect to the transparency and beneficial ownership of legal arrangements.

…

Conclusion

In conclusion, Grenada’s progress in implementing the FATF Recommendations has been mixed with several areas requiring attention and improvement. The report serves as an important call for Grenada to intensify its efforts to effectively combat financial crime and terrorism financing.