Title: Suriname’s Economy at Risk: Money Laundering, Corruption, and the Path to Oil Production
Suriname’s National Risk Assessment Report: A Dire Warning
In a confidential report earlier this month, Suriname’s National Risk Assessment (NRA) on anti-money laundering (AML) and Countering the Financing of Terrorism and Corruption shed light on the country’s ongoing struggles against financial crimes. Despite recent efforts to integrate into the global financial system and control transnational crimes, Suriname faces significant challenges, especially with the impending challenge of becoming a major oil producer.
Key Findings of the NRA
- Money laundering: Despite it being illegal since a 2002 law, money laundering continues to plague Suriname due to insufficient awareness of the issue.
- Corruption: The United Nations Development Program (UNDP) identified corruption as a systemic issue in Suriname. Factors enabling corruption include the concentration of powers, weak checks and balances, poor transparency, unclear regulatory systems, and inconsistent application of procedures.
- Influence of Dési Bouterse: The military strongman, despite allegations of involvement in the 1982 massacre of 15 political opponents and a cocaine trafficking conviction in absentia in the Netherlands, continues to influence the country’s political and economic arenas.
- High-risk sectors: The primary challenges include drug trafficking, illegal gold and timber industries, used car industry, and small-scale jewelry business.
The Need for Legislation and Reform
- Legislation: International standards require additional amendments to Suriname’s legal framework for AML enforcement. The country did not pass or amend AML legislation in 2020.
- Awareness and focus: The Foreign Exchange Commission and customs authorities lack awareness of their roles in preventing money laundering and terrorist financing. Customs authorities do not focus on tackling unauthorized exports and imports of money, precious metals, and other tradable goods.
Progress and Hope for Reform
- New government: The new government led by Chan Santokhi, elected in 2020, has brought hope for reform.
- International support: International financial and technical assistance could play a crucial role in addressing the root issues.
Conclusion
- Suriname faces a dire situation with money laundering, corruption, and the challenges of becoming an oil producer.
- The NRA report serves as a call for action to address these issues to access external financial assistance and realize the country’s development potential.
- With the new government in power and international support, there is hope for reform but requires strong political will from the highest levels to tackle deeply-rooted issues.