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FINANCE MINISTER TO REVOKE LICENSES OF FINANCIAL INSTITUTIONS INVOLVED IN MONEY LAUNDERING

Background

The Minister of Finance has been granted the authority to revoke the licenses of financial institutions that engage in offshore banking, insurance, trust or betting business if an employee or officer is convicted of a crime or fails to disclose a previous conviction.

According to Section 20 of the Money Laundering (Prevention) Act, Chapter 197A, the Minister may revoke the license if the employee or officer is convicted of an indictable offence or an offence under the Act. The section also states that the Minister can revoke the license if the employee or officer fails to disclose a previous conviction at the time of applying for the license.

What constitutes an “indictable offence”?

The Act defines an “indictable offence” as any crime punishable with imprisonment for a term of five years or more, and includes crimes such as drug trafficking, fraud, and money laundering.

New Penalties for Money Laundering Offences

According to Section 27, no prosecution can be instituted without the consent of the Director of Public Prosecutions, and all offences under the Act must be tried on indictment unless otherwise directed by the Director. The Act also provides for a fine of up to $250,000 or imprisonment for up to five years for anyone who commits an offence under the Act.

General Penalty

Section 30 allows for a general penalty of a fine of up to $250,000 or imprisonment for up to five years if no specific penalty is provided for an offence.

Regulations to be Made Under the Act

The Minister is expected to make regulations under the Act in the near future, which will provide further guidance on the implementation of the Act and its due administration. The regulations may also extend the application of other Acts to enable Grenada to cooperate with foreign states in matters concerning or relating to money laundering.

Financial Institutions Advised to Comply

Financial institutions are advised to comply with the requirements of the Money Laundering (Prevention) Act, Chapter 197A, and to report any suspicious transactions immediately. The Minister has also urged financial institutions to maintain accurate records of all transactions and to cooperate fully with investigations into money laundering activities.

Contact Us

For more information on the Money Laundering (Prevention) Act, Chapter 197A, or to report suspicious transactions, please contact the Financial Intelligence Unit at [insert contact information].