Suriname’s Battle Against Financial Crime: New Government Faces Persisting Challenges

Suriname’s Battle Against Financial Crime: New Government Faces daunting Challenges

Unveiling the National Risk Assessment (NRA) Findings

The Caribbean Financial Action Task Force (CFATF) recently published Suriname’s National Risk Assessment (NRA) on anti-money laundering (AML) and Countering the Financing of Terrorism and Corruption. Despite Suriname outlawing money laundering under a 2002 law amended in 2016, the NRA’s findings suggest persisting challenges.

A Deeply Ingrained Corruption Problem

Central to Suriname’s financial crime predicament is its deeply ingrained corruption problem. This issue, as extensively documented in a 2017 United Nations Development Program (UNDP) report, infects businesses, institutions, sectors, and transactions, both domestic and foreign, among citizens and the government.

Factors Fueling Corruption in Suriname

Concentration of powers with insufficient checks and balances
Lack of transparency surrounding executive decisions
Weak oversight and enforcement systems
Inconsistent application of procedures

High-Profile Figures Linked to Corruption

A high-profile figure linked to Suriname’s corruption woes is Dési Bouterse, a military strongman implicated in mass disappearances, cocaine trafficking, and money laundering. Despite these allegations, Bouterse continues to be a significant political and economic force in the country.

The Bouterse Administration

During his tenure as president from 2010 to 2020, Bouterse’s administration was marred by high-level corruption, illicit financial activities, and money laundering, primarily driven by cocaine trafficking, gold mining, and timber trading. Two former high-ranking officials, former Minister of Finance Gillmore Hoefdraad and former Central Bank of Suriname (CBvS) head Robert-Gray van Trikt, were implicated in these crimes.

Ongoing Challenges and the New Government’s Hopes

Despite progress, significant challenges persist, including the growing problem with drug trafficking, gold smuggling, timber theft, and related money laundering activities. Moreover, sectors like the used car industry and small-scale jewelry business refused to participate in the NRA.

Government’s Response

The NRA recommendations now rest in the hands of the Surinamese government. Achieving meaningful change will require a significant commitment from the highest levels of power to combat systemic corruption and enhance transparency.

New Administration and the Future

With the 2020 election bringing a new government, led by former police chief Chan Santokhi, there is renewed hope for curbing Suriname’s pervasive money laundering and corruption issues. However, the magnitude of the undertaking and skepticism regarding the new administration’s ability to deliver substantial change remains a concern.