Financial Crime World

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Financial Crime Data Analysis Reveals Suriname’s Pervasive Corruption and Money Laundering Risks

Suriname, a country plagued by corruption, weak regulations, and porous borders, faces significant financial crime risks according to a new analysis. The study reveals that Suriname is a haven for money laundering, with an estimated $56 million to $139 million laundered annually.

Rampant Corruption and Weak Regulators

Corruption is rampant in Suriname, with ministers and political leaders implicated in numerous scandals. The former president has been convicted of murder and drug trafficking, and remains influential within the current administration. Patronage networks are deeply entrenched in the country’s socio-political fabric, making it difficult to combat corruption.

  • Weak regulations and lack of oversight enable corrupt practices
  • Political influence hinders effective anti-corruption efforts

Transit Country for Cocaine and Mineral Trafficking

The study found that Suriname is a significant transit country for cocaine, with drugs smuggled from Colombia and Venezuela to Europe through the country. The lack of border control with Brazil and Guyana makes it easy for illegal gold and drugs to be smuggled into the country.

  • Lack of border control creates an opportunity for illegal activities
  • Mineral trafficking poses a significant risk due to endemic corruption

Vulnerabilities in Banking Sector and Anti-Money Laundering Regime

Suriname’s banking sector is particularly vulnerable, with banks prioritizing profits over compliance and lacking the technical capacity to counter money laundering. The country’s anti-money laundering (AML) regime has also been criticized for its lack of effectiveness.

  • Weak AML regime enables money laundering and other financial crimes
  • Banks prioritize profits over compliance, creating a vulnerability

Gaps in Regulatory Framework

The study highlights weaknesses in Suriname’s AML regime, including the lack of transparency and oversight in the jewelry industry, fintech, and DNFBPS sectors. Currency exchanges are completely unregulated, and supermarkets even serve as currency dealers, creating a significant gap in Suriname’s regulatory framework.

  • Lack of transparency and oversight in critical industries
  • Unregulated currency exchanges create an opportunity for money laundering

Limited Hope for Government Action

Despite having updated anti-corruption laws and money laundering statutes, Suriname has a minimal political will to address money laundering or criminal activity. The country’s law enforcement agencies also struggle to enforce existing money laundering laws due to corruption and limited resources.

  • Limited political will to address financial crime risks
  • Law enforcement agencies struggle to enforce AML laws

Positive Development: National Risk Assessment

One positive development is the completion of a national risk assessment in 2021, although the document remains confidential. However, there is little hope for government action to address Suriname’s financial crime risks.

  • National risk assessment completed, but results remain confidential
  • Limited hope for government action to address financial crime risks

VinciWorks Guide: Navigating AML Risks in Latin America and the Caribbean

The study has been released by VinciWorks, which provides AML guidance and support to businesses operating in Latin America and the Caribbean. The company has prepared a comprehensive guide to help organizations navigate the complex AML landscape in the region.

  • Download the free guide on VinciWorks’ website
  • Comprehensive guide covers critical AML challenges and issues, as well as country-by-country assessment of AML risks and laws