FATF Status

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

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Grenada was undertaken in 2022. According to that Evaluation, Grenada was deemed Compliant for 8 and Largely Compliant for 9 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Grenada is committed to combating corruption through the Integrity in Public Life Act, which mandates public servants to disclose their income and assets to an independent commission. In 2021, the Office of the Ombudsman received 31 complaints, with the highest number against private entities and the Ministry of Labor. While bribery is illegal and anti-bribery laws are generally enforced effectively, Grenada has not signed the OECD Convention against Bribery, although U.S. firms do not view corruption as a barrier to foreign direct investment.

Grenada's economy is characterized by a strong legal framework that supports business and investment, particularly in the tourism sector, which is a major driver of foreign direct investment (FDI). The country experienced robust real growth of 7.4 percent in 2022 and is projected to maintain a growth rate close to 7 percent in 2023, bolstered by strong performance in construction and tourism-related sectors. With an average of $100 million in annual FDI and a favorable investment climate, Grenada continues to attract both local and international investors.

Grenada offers a favorable investment climate characterized by political stability, a strong legal framework, and various tax incentives for both local and foreign investors. The Grenada Investment Development Corporation (GIDC) plays a crucial role in facilitating foreign direct investment, with over 90 percent of applications for investment incentives being approved. The country has seen significant growth in foreign direct investment, particularly in the tourism sector, and its Investment Migration Agency (CBI program) has experienced remarkable revenue increases, highlighting Grenada's attractiveness as an investment destination.