Suriname

Sanctions

No

FATF AML Deficient List

No

Higher Risk

US Dept of State Money Laundering assessment
Compliance with FATF 40 + 9 Recommendations
Not on EU White list equivalent jurisdictions

Medium Risk

Weakness in Government Legislation to combat Money Laundering
Corruption Index (Transparency International & W.G.I.)
World Governance Indicators (Average Score)
Failed States Index (Political Issues)(Average Score)

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ANTI-MONEY LAUNDERING

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 Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Suriname was undertaken by the Financial Action Task Force (FATF) in 2009. According to that Evaluation, Suriname was deemed Compliant for 2 and Largely Compliant for 3 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

 

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 closely linked with transnational criminal activity related to the transshipment of cocaine, primarily to Europe and Africa.  Casinos, real estate, foreign exchange companies, car dealerships, and the construction sector remain vulnerable to money laundering due to lax enforcement of regulations, though the FIU has increased its engagement with DNFBPs.  Public corruption also contributes to money laundering, though the full extent of its influence is unknown.  Profits from small-scale gold mining and related industries fuel a thriving informal sector.  Much of the money within this sector does not pass through the formal banking system.  In Suriname’s undeveloped interior, bartering with gold is the norm for financial transactions.

 

SANCTIONS

There are no international sanctions currently in force against this country.

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           43

World Governance Indicator – Control of Corruption             50

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 

ECONOMY

The economy is dominated by the mining industry, with exports of oil, gold, and alumina accounting for about 85% of exports and 27% of government revenues, making the economy highly vulnerable to mineral price volatility.

Economic growth has declined annually from just under 5% in 2012 to 1.5% in 2015. In January 2011, the government devalued the currency by 20% and raised taxes to reduce the budget deficit. As a result of these measures, inflation receded to less than 4% in 2015.

Suriname's economic prospects for the medium term will depend on continued commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. The government's reliance on revenue from extractive industries will temper Suriname's economic outlook, especially if gold prices continue their downward trend.

 

Agriculture - products:

rice, bananas, palm kernels, coconuts, plantains, peanuts; beef, chickens; shrimp; forest products

 

Industries:

bauxite and gold mining, alumina production; oil, lumbering, food processing, fishing

 

Exports - commodities:

alumina, gold, crude oil, lumber, shrimp and fish, rice, bananas

 

Exports - partners:

Switzerland 21.8%, UAE 14.5%, India 13.9%, Belgium 9.7%, US 8.9%, France 8.1%, Canada 6.6% (2015)

 

Imports - commodities:

capital equipment, petroleum, foodstuffs, cotton, consumer goods

 

Imports - partners:

US 26.8%, Netherlands 14.3%, China 12.2%, Trinidad and Tobago 7.4%, Japan 4.8% (2015)

 

Investment Climate  -  US State Department

The Government of Suriname (GOS) 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. The government does not officially discriminate against foreign direct investment. However, a non-transparent process for awarding public tenders, perceptions of corruption, institutional capacity constraints, and a lack of overall transparency are obstacles to investment.

 

Historically, the mining sector has attracted significant investment. The economy depends on revenue from oil and gold while bauxite mining has ceased. After 99 years, U.S. aluminum giant ALCOA closed its operations in Suriname last November. U.S. multinational Newmont continues to construct a gold mine expected to start operations by the end of 2016. Lower prices for gold and oil have reduced government earnings.

 

Country Links

Central Bank of Suriname​
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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