Finance Minister Nazim Burke has encouraged all of the country's financial institutions to work together to ensure that the financial system remains strong and clean.
Burke was at the time addressing a one-day workshop on anti-money laundering, and combatting the financing of terrorism.
The Finance Minister said there is need to have a collective responsibility in stamping out money laundering since under the Money Laundering Prevention Act, other companies such as Real Estates and Supermarkets have a role to play in keeping Grenada's financial system clean.
He argued that the main ingredients to maintain a strong and clean financial system are the political will, partnership among the members of the financial community and the regulators, and that time and commitment should be given to professional and institutional development.
Burke said that maintaining a strong and clean financial system requires a partnership between government and the financial sector.
Grenada's financial sector includes five Commercial Banks, 16 Credit Unions, one Development Bank, one Building and Loan Society, three Money Transfer Services, 27 Insurance Companies, and the National Insurance Scheme.
According to Burke, these institutions together, have assets in excess of three billion dollars.
He noted that money laundering is the process of transferring cash or other assets generated from illegal activities in order to conceal or disguise their origin.
He said although it is well established that most of the money laundering occurs in large financial centres of the world, small countries like Grenada are perhaps even more vulnerable to the risk of money laundering.
"Money laundering engenders contempt for the rule of law. It undermines public confidence in both the legal and financial systems. Therefore, we must ensure... that we uphold the rule of law.
"The lack of confidence, then perpetuates a spiralling cycle of crimes. It leads sometimes to fraud, tax evasion, in some cases, even murder.
"If for no other reason than the sake of protecting our young democracy, we must combat money laundering and terrorist financing.
Burke spoke about government's commitment to implement the International Conventions and Treaties to which Grenada is a signatory.
He said that once money laundering is seriously tackled Grenada will be a safe place for attracting investment and tourists, while the failure to prevent money laundering will allow criminals to benefit from their actions which will lead to an increase in crime."In Grenada, we must continually send a strong signal to criminals that crimes do not pay," he remarked.
The senior Government Minister pointed out that in order for that signal to be sent, government will do all in its power to ensure that persons engaged in money laundering are prosecuted, convicted and have their "illgotten gains" confiscated.
Noting that money laundering facilitates corruption, Burke said that the accumulation of economic and financial power by corrupt politicians, public and private officials, and criminal syndicates undermines national economies and democratic systems.
"Our government was elected on a platform of good governance. We are committed to restoring integrity in public life. For this reason you would soon see the establishment of the Integrity Commission to implement integrity in public life", he said.
"You would see soon see the implementation of the anti-corruption Act. Both of these pieces of legislation are intended to fight corruption, are intended to fight impropriety in public office," he added.
Burke gave his government's commitment to the full implementation of the recommendations adopted by the Financial Action Task Force to combat money laundering and terrorist financing.
"Our government believes that the private sector is the engine of growth. However, we cannot and will not promote businesses while at the same time ignoring the regulation of those businesses. If we do, we act and do so at our own peril," he said.
The Finance Minister indicated that government, through its vigilance, will insist that no new financial business starts operating before an appropriate regulatory framework is in place.
"Proactive and effective regulation requires a partnership. As members of the financial community, we call on you to give us your help. I ask you to promptly bring to government's attention any unregulated activities in the financial sector of which you are aware," he said.
"As your Minister of Finance, I want to give you my full assurance that there will be zero tolerance for unregulated operators in Grenada's financial system."We will insist that no new financial business commences before an appropriate regulatory framework is in place.
