FATF Status

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

Caribbean FATF Public Statement on Suriname released following CFATF meeting on 8th June 2016

The CFATF acknowledges the significant progress made by Suriname in improving its AML/CFT regime and notes that Suriname has established the legal and regulatory framework to meet its commitments in its agreed Action Plan regarding the strategic deficiencies that the CFATF had identified. Suriname and the CFATF should continue to work together to ensure that Suriname’s reform process is completed, by addressing its remaining deficiencies and continue implementing its Action Plan.

Caribbean FATF identify significant deficiencies in Suriname's regime to combat money laundering and terrorist financing – November 2015

A High Level Mission was undertaken in relation to Suriname in 27th and 28th of February, 2012. Since then, there has been slow progress with implementation of the necessary amendments required to become fully compliant. Therefore, in November 2014, CFATF brought to the attention of its Members regarding Suriname, the significant strategic deficiencies in their AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies, the CFATF in conjunction with Suriname, developed an Action Plan with identified target dates to address the strategic deficiencies that existed in its national architecture to combat money laundering and the financing of terrorism. Suriname has taken steps towards improving its AML/CFT compliance regime including improvements in the criminalization of money laundering and terrorist financing, and strengthening its customer due diligence requirements.

However, the CFATF has determined that Suriname has failed to make sufficient progress in addressing its significant strategic AML/CFT deficiencies, including certain legislative reforms.

If Suriname does not take specific steps by May 2016, then the CFATF will identify Suriname as not taking sufficient steps to address its AML/CFT deficiencies and will take the additional steps of calling upon its Members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Suriname, and at that time CFATF will consider referring Suriname to the Financial Action Task Force International Cooperation Review Group (FATF ICRG).

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation relating to the implementation of anti-money laundering and counter-terrorist financing standards in Suriname was undertaken in 2023. According to that Evaluation, Suriname was deemed Compliant for 3 and Largely Compliant for 11 of the FATF 40 Recommendations. It remains deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness Compliance ratings.

US Department of State Money Laundering assessment (INCSR)

Suriname is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview  

Money laundering in Suriname is linked to the transshipment of cocaine, primarily to Europe.  Casinos, real estate, foreign exchange companies, car dealerships, and the construction sector remain vulnerable to money laundering due to lax enforcement, though Suriname’s financial intelligence unit (FIU) has increased its engagement with designated non-financial businesses and professions (DNFBPs).  Public corruption also contributes to money laundering.  Profits from small-scale gold mining fuel a thriving informal sector.  Much of this money does not pass through the formal banking system.  In Suriname’s interior regions, bartering with gold is common.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                          40

World Governance Indicator – Control of Corruption             39

Corruption is an obstacle to business in Suriname. It is especially prevalent in public procurement, in the awarding of licenses and in the customs sector. Corruption stems from a lack of regulation and legal anti-corruption measures: A legal anti-corruption framework has yet to be discussed in the National Assembly. This creates problems as it increases the risks of corruption across all sectors. Suriname is not party to the United Nations Convention Against Corruption but has ratified the Inter American Convention Against Corruption. For further information - GAN Integrity Business Anti-Corruption Portal 

The government of Suriname officially supports and encourages business development through local and foreign investment. The overall investment climate favors U.S. investors with experience working in developing countries. To attract foreign direct investment (FDI), authorities have planned to update institutional and legal frameworks to protect investors and eliminate restrictions regarding investment income transfers and control related FDI flows. However, the World Trade Organization’s 2019 Trade Policy Review concluded that Suriname’s investment regime has not changed since its last review in 2013.  The report states that the overall regime, particularly the approval of FDI, may be discretionary rather than rules based.

The extractives sector has historically attracted significant FDI, but numerous factors negatively impact the investment climate. These factors include an unclear process for awarding concessions and public tenders, corruption, institutional capacity constraints, and a lack of overall transparency. In January 2020, Apache and Total announced a “significant oil discovery” off the coast of Suriname in block 58, followed by similar discoveries in April 2020, July 2020, January 2021, and February 2022. In December 2020, Malaysian national oil company Petronas and ExxonMobil announced a discovery of hydrocarbons in Suriname’s Block 52. The International Oil companies have delayed the anticipated 2022 Final Investment Decision citing that more time is needed for exploration after having encountered some unproductive wells in block 58. International oil companies continue to explore both near shore and offshore. U.S.-based Newmont Corporation and Canada-based IAMGOLD that sold its Suriname operation in October 2022 to PCR based Zijin Mining Group – are the two major multinational gold companies in Suriname. They continue to be the key players in Suriname’s gold mining sector, generating significant revenues for the government.

Suriname’s economy has been in decline for the past eight years. To address this decline, the government developed an economic and recovery plan to deal with these serious economic conditions. After taking office in July 2020, President Chandrikapersad Santokhi’s administration opened negotiations with the International Monetary Fund to arrange a financial assistance package and began talks with international bondholders to restructure Suriname’s repayment schedule.

On December 22, 2021, the International Monetary Fund (IMF) approved a 36-month, $688 million Extended Fund Facility (EFF) for Suriname. The EFF will support the government’s economic recovery plan to restore fiscal sustainability, bring public debt down to sustainable levels, upgrade the monetary and exchange rate policy framework, stabilize the financial system, and strengthen institutional capacity to tackle corruption and money laundering and improve governance.

On March 23, 2022, Executive board of the IMF completed the first review of the arrangement under the Extended Fund Facility (EFF) for Suriname. The board’s decision allowed for an immediate disbursement of U$ 55 million. The IMF released a second tranche on March 23, 2022, but subsequent tranches have been indefinitely delayed.

Since taking office, the Santokhi administration allowed the Surinamese dollar to float on the open market, raised taxes on fuel, increased prices for utilities, passed a new law on foreign currency, amended the State Debt Act to allow the government to take loans to address COVID-19, and began reforms of Suriname’s large civil service sector. The government implemented per January 01, 2023, a value-added tax. Suriname’s return to pre pandemic levels of economic activity will take longer because Russia’s invasion of Ukraine has impacted Suriname’s food security, caused supply chain disruptions, and led to inflation.

Country Links

Central Bank of Suriname​