Suriname’s Money Laundering Crisis: AML Challenges and Risks in the “Dutch Caribbean Jewel”
Amid the vibrant and rich cultural landscape of Suriname, nestled in the heart of Latin America and the Caribbean, lies a complex web of financial compliance issues. This article sheds light on the money laundering challenges and key risks organizations may face in Suriname. For a more in-depth analysis of AML risks and regulations in Latin America and the Caribbean, download our free guide Getting Started with AML in Latin America and the Caribbean.
Key Risks in Suriname
Suriname faces significant money laundering risks due to various interconnected factors.
1. Lack of Regulation and Institutional Weakness
Suriname is known as a “money laundering paradise” due to weak institutions, limited technical capacity, and slow implementation of laws. It has faced recent high-level corruption allegations; the central bank governor and finance minister were charged with financial crimes, having allegedly embezzled $200 million.
2. Pervasive Corruption
Pervasive corruption at all levels of government is a primary concern. In 2020, the former president was convicted of murder and drug trafficking, and he still wields significant influence over the current administration. Patronage and bribery are deeply ingrained.
3. Drug Trafficking
Suriname is a significant transit country for cocaine from Colombia and Venezuela, en route to Europe. In the past, the former head of the anti-terror unit was convicted in a US court for drug trafficking and funneling profits to Hezbollah.
4. Mineral Trafficking (Gold and Timber)
Gold is Suriname’s largest export and a major source of money laundering risk. Illegally mined gold and timber trafficking are prevalent. In 2015, the government sold the responsibility for collecting gold export taxes to a UAE-based gold company, which is suspected of being a money laundering front.
5. Porous Borders
The borders with Brazil and Guyana make it easy for illegal activities, such as smuggling of gold and cocaine, to go undetected.
6. Used Cars
Used cars are commonly used for transaction-based money laundering.
Criminal Proceeds
The estimated annual money laundering volume in Suriname ranges from $56 million to $139 million.
AML Policy Summary
Despite Suriname’s attempts to combat money laundering with updated anti-corruption laws and money laundering statutes, these measures remain largely ineffective. Although a mandated Anti-Corruption Commission has not been established, convicted criminals continue to operate their businesses with impunity. The banking sector and certain industries, including lawyers, notaries, car dealers, currency exchanges, fintech, and the jewelry industry, are primary channels for money laundering.
Key Concerns
- Drugs are smuggled in container ships and small vessels and are openly traded in Suriname.
- The country functions as a wholesale broker, facilitating transactions between buyers and sellers.
- Terrorist financing remains a concern, with Suriname serving as a base for the Hezbollah organization.
Suriname: Strengths and Weaknesses
Suriname has completed a national risk assessment but faces challenges in enforcing the findings. The previous government, led by convicted murderer and drug trafficker Desi Bouterse, still maintains significant influence in the new government.
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VinciWorks has prepared a comprehensive guide on key AML challenges and regulations in Latin America and the Caribbean, including a country-by-country analysis of risks and laws.
Getting Started with AML in Latin America and the Caribbean
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