The information below provides details about the Grenada banking system, offshore banking in Grenada, and details on opening a Grenada bank account. You will find details on the laws and regulations that govern the banking system, as well as a list of local and international Grenada banks that are operating.
The countries of the Eastern Caribbean have highly integrated economies and financial sectors. The Organization of Eastern Caribbean States (OECS) is a regional grouping of the island economies, comprised of Anguilla, Antigua & Barbuda, Dominica, Grenada, Montserrat, St. Kitts & Nevis, St. Lucia and St. Vincent & The Grenadines. OECS members have highly integrated economies and financial sectors, with a common currency under the Eastern Caribbean Currency Union, and a common central bank, the Eastern Caribbean Central Bank (ECCB).
In Grenada, offshore banks are regulated by the Grenada International Financial Services Authority (GIFSA). Financial sector legislation was strengthened in 2001, and the Grenada International Financial Services Authority was brought under stricter management. An amendment to the GIFSA Act (No. 13 of 2001) eliminates the regulator’s role in marketing the offshore sector. GIFSA makes written recommendations to the Minister of Finance in regard to the revocation of offshore entities’ licenses and issues certificates of incorporation to IBCs. In the future, GIFSA is expected to assume authority for regulating both onshore and offshore institutions, in some areas sharing supervision with the Eastern Caribbean Central Bank (ECCB). It is expected that GIFSA will be renamed the Grenada Authority for the Regulation of Financial Institutions. Overall supervision of the banking sector in the OECS is provided by the Eastern Caribbean Central Bank (ECCB). Grenada’s domestic banking sector consists of six commercial banks, 26 registered domestic insurance companies, two credit unions, and four or five money remitters.
In September 2001, the Financial Action Task Force (FATF) placed Grenada on the list of noncooperative countries and territories in the fight against money laundering (NCCT). The FATF in its report cited several concerns: inadequate access by Grenadian supervisory authorities to customer account information, inadequate authority for Grenadian supervisory authorities to cooperate with foreign counterparts, and inadequate qualification requirements for owners of financial institutions. In April 2002, the U.S. Department of Treasury issued an advisory to banks and other financial institutions operating in the United States, to give enhanced scrutiny to all financial transactions originating in or routed to or through Grenada, or involving entities organized or domiciled, or persons maintaining accounts, in Grenada.
The Grenada International Financial Services Authority commenced operations in January 2000 in order to monitor the operations of offshore companies and the International Financial Services Bill was enacted in October 2001 to combat money laundering.
Like those of many other Caribbean jurisdictions, the Government of Grenada (GOG) raises revenue from the offshore sector by imposing licensing and annual fees upon offshore entities. Grenada is reported to have over 20 Internet gaming sites. There are also about 900 international business companies (IBCs).
Grenada’s efforts to put into place the legislation and regulations necessary for adequate supervision of Grenada’s offshore sector prompted the FATF to remove Grenada from the NCCT list in February 2003. The Department of Treasury also lifted its advisory on Grenada in April 2003.
Some of the banks operating in Grenada:
Contact Us today to learn more about opening a Grenada bank account and our offshore bank account opening services we offer.