Grenada: Offshore Business Sectors
The main statutes governing offshore activity in Grenada are as follows:
- International Companies Act (as amended, 2002)
- International Insurance Act 1996 (as amended, 2002)
- International Trusts Act 1996
- Offshore Banking Act 2003
- International Financial Services (Miscellaneous Amendments) Act 2002
Grenada’s Money Laundering Prevention Act of 1999 established a Supervisory Authority over the financial sector, and imposed customer identification requirements on banking and other financial institutions. The Proceeds of Crime (Amendment) Act of 2003 extends anti-money laundering responsibilities to a number of non-bank financial institutions.
The Grenada International Financial Services Authority (GIFSA) monitors and regulates both onshore and offshore financial institutions, in some areas sharing supervision with the Eastern Caribbean Central Bank (ECCB); it also issues certificates of incorporation to IBCs. In 2007, GIFSA was renamed the Grenada Authority for the Regulation of Financial Institutions. Legislation implementing the new regulatory body was defeated in the Senate in 2005; however, the legislation was reintroduced and enacted in 2006.
In June 2001, Grenada established a Financial Intelligence Unit (FIU) headed by a prosecutor from the Attorney General’s office. The FIU can provide information concerning SARs to any foreign FIU. Grenada has cooperated extensively with US law enforcement in numerous money laundering and other financial crimes investigations. As a result, several subjects in the United States were successfully prosecuted. Grenada became a member of the Egmont Group in June 2004.
During 2003, Grenada passed the Exchange of Information Act No. 2 of 2003, which strengthened the government's ability to share information with foreign regulators. A Mutual Legal Assistance Treaty and an Extradition Treaty have been in force between Grenada and the United States since 1999. Grenada also has a Tax Information Exchange Agreement with the United States.
To strengthen the supervision of the nonbank financial sector, including the insurance sector, cooperatives, offshore financial services, and money remitters, the government enacted the Grenada Authority for the Regulation of Financial Institutions (GARFIN) Act in May 2006. The Act provides for the creation of a single regulatory agency responsible for regulating and supervising all nonbank financial institutions and services in Grenada. The Eastern Caribbean Central Bank has responsibility for the supervision of domestic banks, and will continue to do so. GARFIN came into operation in 2007.
At the time of writing, the domestic financial sector includes five commercial banks, 24 registered domestic insurance companies, 12 credit unions, and three money remitters.