Financial Crime World

SURINAME FINANCIAL INSTITUTIONS MUST ADHERE TO COMPLIANCE CHECKLIST TO AVOID MONEY LAUNDERING RISKS

Financial institutions in Suriname are urged to take immediate action to comply with anti-money laundering (AML) regulations, as the country’s lack of effective laws and corruption pose significant risks to the financial sector.

Risk Factors in Suriname

  • Poor regulation
  • Weak institutions
  • Low technical capacity
  • Inadequate implementation of laws
  • Corruption is endemic, with government officials and politicians involved in various scandals
  • Porous borders with Brazil and Guyana allow for easy smuggling of illegal gold and cocaine

The Importance of AML Compliance

AML compliance is crucial to prevent money laundering, terrorist financing, and other financial crimes. Financial institutions must assess customer, geographic, or matter risk to identify potential threats and implement measures to mitigate them.

Challenges in Implementing AML Regulations

  • Banks in Suriname are seen as unwilling to prioritize compliance over profit
  • Lacking technical knowledge and expertise to tackle money laundering
  • The government has passed updated anti-corruption laws, but these are not being implemented effectively
  • The Anti-Corruption Commission has not been established, and convicted criminals operate with impunity from the heart of government

High-Risk Sectors

Other sectors that pose AML risks include:

  • Lawyers
  • Notaries
  • Car dealers
  • Currency exchanges
  • Fintech companies
  • DNFBPS (designated non-financial businesses and professions)
  • The jewelry industry

What Financial Institutions Must Do

To avoid money laundering risks, financial institutions in Suriname must implement effective AML policies and procedures, including:

  • Customer due diligence
  • Ongoing monitoring of transactions
  • Reporting of suspicious activities
  • Staying informed about emerging trends and threats in the region

VinciWorks’ Guide to AML Compliance

VinciWorks has developed a comprehensive guide to help businesses operating in Latin America and the Caribbean navigate AML challenges and issues. The guide provides an overview of key AML risks and laws, as well as a country-by-country assessment of AML risks and regulations.

Consequences of Non-Compliance

Financial institutions in Suriname must take immediate action to comply with AML regulations and prevent money laundering and other financial crimes. Failure to do so could result in severe consequences, including:

  • Fines
  • Reputational damage
  • Loss of international credibility