Financial Crime World

Title: Suriname’s Uphill Battle Against Money Laundering and Corruption: An Emerging Oil Producer’s Challenge

Suriname

Suriname’s National Risk Assessment Report

  • The highly anticipated National Risk Assessment (NRA) report on money laundering and countering the financing of terrorism and corruption in Suriname was published earlier this month. (Source)

Challenges for Suriname

Anti-Money Laundering Awareness and Understanding

  • While Suriname has legislation against money laundering, a significant lack of awareness and understanding is prevalent.
  • This creates major challenges for the country as it integrates into the global financial system and controls transnational crime.

Corruption

  • Corruption is deeply ingrained in Suriname’s structures, institutions, sectors, and transactions. (UNDP Report 2017)

Factors Contributing to Corruption

  • Concentration of powers
  • Weak checks and balances
  • Poor transparency
  • Unclear regulatory systems
  • Weak systems of oversight and enforcement
  • Inconsistency in applying procedures

Major Players in Suriname’s Corruption

  • Former military strongman and president, Dési Bouterse

Dési Bouterse’s Influence

  • Implicated in one of Suriname’s darkest chapters: the massacre of 15 political opponents in 1982 (BBC News)
  • Criminal conviction for cocaine trafficking in the Netherlands (NL Times)
  • Appealing 20-year prison sentence for massacre-related crimes
  • Influence in Suriname’s political and economic spheres

Bouterse’s Administration 2010-2015

  • Marked by widespread corruption, illicit financial activities, and money laundering

Criminal Charges and Investigations

  • Gillmore Hoefdraad (former Minister of Finance) was charged with multiple criminal offenses in 2019, including banking and anti-corruption law violations, fraud, embezzlement. He is now on the run from authorities.
  • Robert-Gray van Trikt (former head of the Central Bank of Suriname) was jailed in connection to these crimes

The NRA’s Findings and Concerns

  • Drug trafficking, illegal gold and timber trade, corruption, and money laundering are major concerns for the newly elected government.
  • Some industries—used cars and small-scale jewelry—refused to participate in the NRA process.
  • No legislation was passed or amended for anti-money laundering enforcement in 2020.
  • The Foreign Exchange Commission was criticized for insufficient awareness and capacity to address money laundering and terrorism financing effectively.

Oil Production and Corruption

  • As Suriname prepares to join the ranks of oil-producing nations, money laundering and corruption risks grow more prominent.
  • International money laundering expert Bruce Zagaris warns that unless Suriname takes the necessary steps toward transparent and accountable governance, it will struggle to realize its developmental potential. (FIJI Times)

Joining the Global Economy

  • It is crucial that Suriname addresses its deeply ingrained corruption and money laundering issues to successfully capitalize on its oil industry and join the modern global economy.