SURINAME
Summary

Sanctions

None

FAFT AML Deficient

No

Higher Risk Areas

US Dept of State Money Laundering assessment

Compliance with FATF 40 + 9 Recommendations

Not on EU White list equivalent jurisdictions

Medium Risk Areas

 

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)

 

 

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 to transnational criminal activity related to the transshipment of cocaine, primarily to Europe and Africa. According to local media reports, both domestic and international drug trafficking organizations are believed to control most of the laundered proceeds, which are primarily invested locally in casinos, real estate, foreign exchange companies, car dealerships, and the construction sector. Public corruption also may contribute 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.

 

VULNERABILITIES AND EXPECTED TYPOLOGIES

 

Goods such as agricultural products, fuel, cigarettes, alcohol, and medicine are smuggled into the country via Guyana and French Guiana and are sold below market prices. Other goods are smuggled into the country with the primary aim of avoiding payment of import duties and other taxes. There is little evidence to suggest this smuggling is funded by narcotics trafficking or other illicit activity. Contraband smuggling likely does not generate funds later laundered through the financial system. There are indicators that TBML occurs, generally through the activities of local car dealerships, gold dealers, and currency exchanges (cambios). Money laundering may occur in the formal financial sector through banks and cambios.

 

There is no evidence the formal banking sector facilitates movement of currency derived from illegal drug sales in the United States. Local drug sales of cocaine in transit through Suriname are usually conducted in U.S. dollars, which may be deposited domestically.

 

KEY AML LAWS AND REGULATIONS

 

Suriname has taken a number of steps recently to improve compliance with international AML standards. For example, the International Sanctions Act (O.G. 2016 no. 31) was enacted on February 29, 2016 and came into force on March 3, 2016 to amend the International Sanctions Act (O.G. 2014 no. 54). This law establishes as a legal entity a Council on International Sanctions, with the responsibility of supervising all service providers for compliance with the International Sanctions Act.

 

On February 29, 2016, the Law on detailed amendment to the Law on Personal Identification Service Act (O.G. 2016 no. 32) was enacted. It was brought into force on March 3, 2016 to amend the Personal Identification Services (WID) Act. This law is directly related to the CDD obligations applicable in higher risk situations and is intended to make enhanced CDD mandatory for Suriname’s NPOs.

 

The Law on detailed amendment to the Law on Disclosure of Unusual Transactions Act (O.G. 2016 no 33) was enacted on February 29, 2016 and came into force on March 3, 2016 to amend the Disclosure of Unusual Transactions Act (O.G. 2002 no. 65, as amended in O.G. 2012 no. 133). The overarching intent of this amendment is to further improve the AML mechanisms linked, in part, to the Act on Capital Market (O.G. 2014 no. 53).

 

On February 29, 2016, State Decree (O.G. 2016 no 34) was enacted with the overarching intent to implement article 2, section 1 of the Act International Sanctions (O.G. 2014 no. 54).

 

CDD rules and STR requirements cover banks and credit unions, asset managers, securities brokers and dealers, insurance agents and companies, currency brokers, remitters, exchanges, auditors, accountants, notaries, lawyers, real estate agents, dealers in gold or other precious metals and stones, gaming entities and lotteries, and motor vehicle dealers.

 

The exchange of records between Suriname and other countries is possible via individual MOUs and mutual legal assistance requests.

 

Suriname is a member of the CFATF, a FATF-style regional body.

 

AML DEFICIENCIES

 

On November 25, 2015, the CFATF issued a public statement asking its members to consider the risks posed to their financial systems by the strategic deficiencies in Suriname’s AML regime.

 

On November 10, 2016, the CFATF recognized Suriname’s improvements in the legislative and regulatory areas and called on Suriname to continue making further improvements to achieve full compliance with international AML standards.

 

Suriname has requirements for enhanced due diligence procedures for foreign, but not domestic, PEPs.

 

During the period January to September 2016, 115 of the 306,619 STRs received by the FIU led to investigations.

 

Suriname is not a member of the Egmont group. Additionally, the Government of Suriname is not party to the UNCAC.

 

ENFORCEMENT/IMPLEMENTATION ISSUES AND COMMENTS

 

Suriname ratified the United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances in 1992. A bill on international sanctions was passed in the first half of 2016.

 

A gaming board was established by Law in 2009. In March 2016, the Minister of Justice and Police met with the three-member leadership team of the Gaming Board. The Board presented a plan to start operational activities in the near future. Other than the three members, the Board has no personnel.

 

From January to September 2016, there were four money laundering prosecutions and no convictions.

 

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SANCTIONS

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

 

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BRIBERY & CORRUPTION

 

Index

Rating (100-Good / 0-Bad)

Transparency International Corruption Index

45

World Governance Indicator – Control of Corruption

34

 

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INVESTMENT CLIMATE - Executive Summary (US State Department)

The Government of Suriname (GOS) identified Foreign Direct Investment (FDI) as the key to further growth of the country and its economy. It supports and encourages business development through foreign and local investment in a number of different sectors. In addition, the GOS Development Plan for 2012-2016 identifies international partnerships as a particularly important means to help develop the economy. This includes both bilateral and multilateral partners, as well as private foreign investors. Currently, the mining and crude oil industry are the main sectors targeted for large scale investment. In 2013, parliament approved two gold mining deals with two multinationals. Despite the current decline of world market prices for gold, the government hopes that these investments of approximately U$1.1 billion will continue as scheduled. The State Oil Company Suriname (Staatsolie) increased investment in oil refining and ethanol production. The refinery expansion project is scheduled for completion in late 2014. Following a successful pilot, Staatsolie plans to invest in a large scale project to produce ethanol from sugarcane. Later this year, the company will issue a USD $150 million bond loan to secure to fund scheduled investments. The GOS focuses also on developing tourism, forestry, and agriculture sectors.

 

 

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