Grenada Country Summary

FATF Status

Grenada is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Grenada was undertaken in 2022. According to that Evaluation, Grenada was deemed Compliant for 8 and Largely Compliant for 9 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Grenada has implemented measures to combat corruption, including the Integrity in Public Life Act, which mandates public servants to disclose their income and assets to an independent commission. While bribery is illegal and generally enforced effectively, Grenada is not a signatory to the OECD Convention against Bribery and has not ratified the UN Convention against Corruption. The country faces challenges with human trafficking, drug transit, and financial crimes, but it maintains a stable governance structure and an active civil society aimed at addressing these issues.

Grenada's economy is characterized by a strong legal framework that supports business operations and foreign direct investment (FDI), particularly in the tourism sector. Following a robust growth of 7.4 percent in 2022, the economy is expected to continue its recovery with a projected growth of nearly 7 percent in 2023, driven by construction and tourism. The government actively promotes investment through various incentives and a favorable regulatory environment, attracting an average of $100 million in FDI annually.

Grenada offers a favorable investment climate characterized by political stability, a strong legal framework, and a range of tax incentives for both local and foreign investors. The government actively encourages investment across various sectors, particularly tourism and agribusiness, and has seen significant growth in foreign direct investment, particularly through its Investment Migration Agency, which reported a 213% increase in revenues in early 2023. The Grenada Investment Development Corporation facilitates investment processes, ensuring transparency and equitable treatment for all investors.