Financial Crime World

Here is the rewritten article in markdown format:

Suriname’s Struggle Against Money Laundering and Corruption: A Rocky Road Ahead

As Suriname continues to navigate its complex relationship with money laundering and corruption, a recent National Risk Assessment (NRA) has painted a sobering picture of the country’s progress - or lack thereof. Despite some improvements, the report highlights significant challenges that must be addressed if Suriname is to avoid being blacklisted by international organizations.

Key Challenges Identified

The NRA identified several key areas where Suriname falls short in its efforts to combat money laundering and corruption:

  • The used car industry and small-scale jewelry business, both of which refused to participate in the assessment, were deemed “high risk” for money laundering and corruption.
  • The Foreign Exchange Commission was found to be insufficiently aware of its role in preventing money laundering and terrorist financing.
  • The banking sector, while making progress in cleaning up its act, remains a significant concern. Efforts to implement anti-money laundering (AML) regulations have been slow, with no major changes made to AML legislation in 2020.

Concerns About Governance and Corruption

The election of former police chief Chan Santokhi as prime minister had raised hopes for a fresh start in tackling corruption, but the appointment of family members to key government posts has sparked concerns about the administration’s commitment to reform. Vice President Ronnie Brunswijk’s criminal conviction for cocaine trafficking in 2000 has also added to the skepticism.

Limited Participation of Civil Society

The limited participation of civil society in the fight against money laundering and corruption is another major challenge. Corruption remains deeply ingrained, with many Surinamese accepting it as an inevitable part of everyday life.

Opportunities for Change

However, the discovery of significant commercial oil reserves off the coast of Suriname in 2019 and 2020 presents a crucial opportunity for the country to benefit from its natural resources while addressing corruption and money laundering. As international expert Bruce Zagaris noted, “Unless Suriname proactively tackles its widely reported problems of governance, transparency, and anti-corruption, it will not access external financial and technical assistance, and it will not realize its developmental potential.”

The Road Ahead

The road ahead for Suriname will be long and arduous, but the country must take immediate action to address these challenges. Giving more powers to the judiciary to handle corruption cases is a positive step, as is the completion of the NRA. However, the hard work of dealing with deep institutional corruption and money laundering has only just begun, and it remains to be seen whether Suriname can overcome its challenges and achieve its developmental potential.

Sources:

  • National Risk Assessment (NRA) 2020
  • United Nations Development Programme (UNDP) report 2017
  • Smith’s Research & Gradings
  • Caribbean Policy Consortium
  • Center for Strategic & International Studies
  • Global Americans