FATF AML Deficiency List
Non - Compliance with FATF MER Recommendations
Offshore Finance Center
US Dept of State Money Laundering assessment
Weakness in Government Legislation to combat Money Laundering
Corruption Index (Transparency International & W.G.I.)
World Governance Indicators (Average Score)
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 by the Financial Action Task Force (FATF) in 2009. According to that Evaluation, Grenada was deemed Compliant for 4 and Largely Compliant for 9 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.
US Department of State Money Laundering assessment (INCSR)
Grenada was deemed a Jurisdiction of Primary Concern by the US Department of State 2017 International Narcotics Control Strategy Report (INCSR) but has not been included since. Key Findings from the last report are as follows: -
Grenada’s geographic location in the Caribbean places it in close proximity to drug shipment routes from Venezuela to the United States and Europe. As a narcotics transfer point, money laundering in Grenada is principally connected to smuggling and narcotics trafficking by local organized crime rings. Illegal proceeds are laundered through a variety of businesses, as well as through the purchase of real estate, boats, jewelry, and cars.
Grenada is not a regional financial center. The Eastern Caribbean Central Bank is the supervisory authority for Grenadian commercial banks, and the Grenada Authority for the Regulation of Financial Institutions is responsible for supervising DNFBPs. Even though IBCs and offshore banking and trust companies are allowed to conduct business in Grenada, none are currently operating. Grenada has no casinos or internet gaming sites. The International Companies Act regulates the establishment and management of IBCs in Grenada and requires registered agents to maintain records of the names and addresses of company directors and beneficial owners of all shares. Bearer shares are not permitted. There are no FTZs in Grenada.
EU Tax Blacklist
Grenada was removed from EU Tax Blacklist on 23 January 2018 following "commitments made at a high political level to remedy EU concerns".
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index 53
World Governance Indicator – Control of Corruption 65
Grenada relies on tourism as its main source of foreign exchange especially since the construction of an international airport in 1985. Strong performances in construction and manufacturing, together with the development of tourism and higher education - especially in medicine - contributed to growth in national output; however, economic growth remained stagnant in 2010-14, after a sizable contraction in 2009, because of the global economic slowdown's effects on tourism and remittances. Gross national saving – and wealth – has been declining since 2010.
Hurricanes Ivan (2004) and Emily (2005) severely damaged the agricultural sector - particularly nutmeg and cocoa cultivation - which had been a key driver of economic growth. Grenada has rebounded from the devastating effects of the hurricanes but is now saddled with the debt burden from the rebuilding process. Public debt-to-GDP is about 110%, leaving the MITCHELL administration limited room to engage in public investments and social spending. MITCHELL in 2013 announced a structural adjustment program that includes a plan to increase tax revenue.
Agriculture - products:
bananas, cocoa, nutmeg, mace, citrus, avocados, root crops, sugarcane, corn, vegetables
food and beverages, textiles, light assembly operations, tourism, construction
Exports - commodities:
nutmeg, bananas, cocoa, fruit and vegetables, clothing, mace
Exports - partners:
Nigeria 44.7%, St. Lucia 10.8%, Antigua and Barbuda 7.3%, St. Kitts and Nevis 6.6%, Dominica 6.6%, US 5.8% (2015)
Imports - commodities:
food, manufactured goods, machinery, chemicals, fuel
Imports - partners:
Trinidad and Tobago 49.6%, US 16.4% (2015)
Investment Climate - US State Department
Grenada is a liberal, parliamentary democracy, has a functioning court system, low rates of crime, and is devoid of political violence. The country's legal framework for business is strong, though at times implementation of legislation can be found wanting. While Grenada strives for bureaucratic efficiency and transparency in matters related to business and investment, bureaucratic processes can be time consuming, and legal processes prolonged. Ongoing discussions about constitutional reform should bolster the investment climate in Grenada.
Grenada’s ranking on the World Bank’s Doing Business Indicator slipped from 130 in 2015 to 135 in 2016. While Grenada's leaders continue to pledge themselves to improve the country's business climate, public statements that cast doubt on the inviolability of contracts, particularly in the utility sector, will require careful scrutiny. Notable recent investments in the tourist industry include two five star hotels: Sandals La Source Resort, and Silver Sands Resort, currently under construction.
The tourism sector attracts the most foreign direct investment (FDI) followed by other construction. The availability of tax incentives for investors, equitable treatment of national and foreign investors, political stability, good infrastructure, and a favorable location make Grenada a strategic destination for investments. To date, the main countries investing in the island are Trinidad and Tobago, the United States, China, and Great Britain.
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