Financial Crime World

Money Laundering Techniques Exposed in Grenada: Report Reveals Country’s Compliance with FATF Recommendations

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A recent report has shed light on the extent to which Grenada has implemented the technical requirements of the Financial Action Task Force (FATF) recommendations, revealing a mixed bag of compliance. The report, released in 2022, assesses the country’s efforts in combating money laundering and terrorist financing.

Assessment of Compliance

According to the report, Grenada is:

  • Partially compliant with Recommendation R.1 on assessing risk and applying a risk-based approach
  • Partially compliant with Recommendation R.10 on customer due diligence, meaning that it has not fully implemented measures to verify the identity of customers

On a positive note, Grenada is deemed:

  • Compliant with Recommendations R.3 and R.20, which relate to the money laundering offence and reporting of suspicious transactions, respectively
  • Largely compliant with Recommendation R.29 on financial intelligence units, indicating that it has established such units but may require further improvement

Challenges in Implementation

However, Grenada faces challenges in implementing certain recommendations, including:

  • Non-compliance with Recommendation R.37 on mutual legal assistance, meaning that it lacks the necessary laws and procedures to facilitate cooperation with other countries in this area
  • Partially compliant with Recommendation R.32 on cash couriers, indicating that while it has taken steps to regulate them, more needs to be done

Areas for Improvement

The report highlights several areas where Grenada can improve its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, including:

  • Strengthening customer due diligence measures
  • Enhancing the regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs)
  • Improving international cooperation

Conclusion

Overall, while Grenada has made progress in implementing FATF recommendations, it faces significant challenges in addressing money laundering and terrorist financing threats. The report serves as a wake-up call for the country to take further action to strengthen its AML/CFT regime and prevent financial crimes.