Financial Crime World

Suriname: A Paradise for Money Launderers

Suriname, a small country in South America, has been identified as a hub for money laundering due to its weak regulations, corruption, and lack of political will to tackle the issue.

The Scale of the Problem

  • An estimated $56 million to $139 million is laundered every year in Suriname.
  • The country’s poor regulation and lack of implementation of laws have made it a paradise for money launderers.

Corruption and Political Instability

  • Corruption is endemic at all levels of government, with politicians and officials involved in various scandals.
  • The governor of the central bank and the finance minister were charged with financial crimes after stealing $200 million.
  • Despite having anti-corruption laws on the books, Suriname has failed to implement them.

Drug Trafficking and Terrorist Financing

  • Suriname is a key transit country for drug trafficking, with cocaine being smuggled from Colombia and Venezuela to Europe through the country.
  • The former head of the anti-terror unit was convicted in a US court for drug trafficking and funneling profits to Hezbollah.
  • The country’s porous borders with Brazil and Guyana allow for easy smuggling of illegal goods, including gold and cocaine.

Facilitators of Money Laundering

  • The country’s jewelry industry, fintech companies, and car dealers are key facilitators for money laundering.
  • Currency exchanges are often unregulated, with supermarkets acting as currency dealers.
  • The lack of regulation has made it easy for criminals to launder money through these channels.

The Banking Sector

  • The banking sector is weak, with banks prioritizing profit over compliance, and lacking the technical knowledge and expertise to tackle money laundering.
  • Suriname’s gold export tax authority was sold to a UAE-based company, which is believed to be a front for money launderers.

Conclusion

  • Despite having anti-money laundering laws on the books, Suriname has failed to implement them.
  • Businesses operating in or planning to operate in Suriname should be aware of these risks and take necessary steps to comply with anti-money laundering regulations.