Financial Crime World

Grenada’s Anti-Money Laundering and Combating Financing of Terrorism Efforts Need Improvement

A recent evaluation by the Caribbean Financial Action Task Force (CFATF) has identified several concerns regarding Grenada’s efforts to combat money laundering (ML) and terrorist financing (TF). The report highlights areas where improvement is needed to strengthen Grenada’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Investigation and Prosecution

  • While Grenada has demonstrated its capacity to investigate complex ML cases, there is a need for specialized training for law enforcement agencies to tackle TF.
  • Drug trafficking offenses have not routinely resulted in ML investigations.
  • Grenada’s legal framework for implementing TF measures is fundamentally weak, with no mechanism in place for identifying and proposing targets for designations or freezing assets without delay.
  • The country’s risk assessment of TF risks is deemed to be incomplete, with concerns about the comprehensiveness of its vulnerability to TF.

Regulatory Framework

  • Grenada’s regulatory framework, particularly in relation to non-profit organizations (NPOs), is weak:
    • NPOs are required to register with the Financial Intelligence Unit (FIU) and the Anti-Money Laundering/Combating Financing of Terrorism Commission.
    • However, there is no risk-based supervision approach in place, and NPOs do not have a clear understanding of the TF risks posed to their sector.

Proliferation Financing

  • Grenada has not implemented measures to address proliferation financing (PF), with no laws or regulations in place to combat PF.
  • While some financial institutions and designated non-financial businesses and professions (DNFBPs) were aware of international obligations related to PF, they did not have any legal obligation to implement TF for PF.

Financial Institutions

  • There are varying levels of understanding of AML/CFT legal obligations among financial institutions in Grenada:
    • Some financial institutions demonstrate a better understanding than others.
    • Even those with established policies and procedures may not have consistently enforced these measures.

Overall, the CFATF report highlights several areas where Grenada needs to improve its AML/CFT regime, including:

  • Strengthening its legal framework
  • Improving risk assessment
  • Enhancing supervision of NPOs
  • Implementing measures to address proliferation financing

Grenada must take concrete steps to address these weaknesses and improve its ability to combat money laundering and terrorist financing.