SURINAME
Summary

Sanctions

None

FAFT AML Deficient

No

Higher Risk Areas

Compliance with FATF 40 + 9 Recommendations

Not on EU White list equivalent jurisdictions

Medium Risk Areas

 

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)

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 was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR).

Key Findings from the report are as follows: -

 

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, the construction sector, and car dealerships. Public corruption also may contribute to money laundering, though the full extent 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.

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 mainly to avoid paying import duties or other taxes. There is little evidence to suggest this smuggling is funded by narcotics trafficking or other illicit activity. There are indicators that trade-based money laundering 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.

On November 25, 2015, the Caribbean Financial Action Task Force (CFATF) issued a public statement asking its members to consider the risks inherent in Suriname’s AML/CFT regime. The statement follows CFATF’s acknowledgement that, although Suriname has made improvements in the areas of the criminalization of the money laundering and terrorist financing offenses and in customer due diligence, it has not made sufficient progress in fulfilling its action plan and addressing its serious AML/CFT deficiencies.

There is no evidence of terrorism financing. There is also no evidence the formal banking sector facilitates movements 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.

 

____________________________________________________________________________________

 

SANCTIONS

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

 

____________________________________________________________________________________

 

BRIBERY & CORRUPTION

 

Index

Rating (100-Good / 0-Bad)

Transparency International Corruption Index

45

World Governance Indicator – Control of Corruption

34

 

____________________________________________________________________________________

 

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.

 

 

This is my page