Remote VASP serving residents in Grenada

Exchange between virtual assets and fiat currencies.

Exchange between one or more forms of virtual assets.

Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.

Provision of virtual asset payment services.

Transfer of virtual assets.

An applicant must be a company incorporated or established in Grenada. This requires a legal entity registered within the jurisdiction.

While the Act does not explicitly mandate all directors or senior officers to be Grenadian residents, it does require that the applicant "has directors or senior officers that are ordinarily resident in Grenada or other arrangements in respect of directors or senior officers that the Authority considers appropriate." This indicates a strong preference for or requirement of local management or significant operational presence.

The Act mandates that a licensee must, at all times, maintain sufficient capital to carry on its virtual asset business.

Fit and Proper Test:

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures (Know Your Customer - KYC).

Risk-based approach to assessing and mitigating money laundering and terrorism financing risks.

Record-keeping of transactions and customer identification data.

Monitoring of transactions for suspicious activities.

Reporting of suspicious transactions (STRs) to the FIU.

Appointment of a designated AML/CFT Compliance Officer.

Ongoing training for employees.

Require Registration/Licensing: All entities operating as Virtual Asset Service Providers (VASPs) in Grenada are legally required to be licensed by GARFIN and comply with AML/CFT regulations enforced by both GARFIN and the FIU.

Monitor and Investigate: The FIU, in particular, would investigate suspicious transactions involving virtual assets as part of its mandate to combat money laundering and terrorist financing. Non-compliance could lead to investigations, orders to cease operations, and potentially sanctions.

Such actions have not occurred at a level deemed "significant" for public reporting.

All transfers above USD/EUR 1,000 (or equivalent): Both originator and beneficiary information must be collected, held, and transmitted.

All transfers below USD/EUR 1,000 (or equivalent): Originator name and account number (or unique transaction reference) and beneficiary name and account number (or unique transaction reference) must be collected and held. This information should be readily available and immediately provided to authorities upon request. Full Travel Rule data is required if there are suspicions of money laundering or terrorist financing, irrespective of the threshold.

Information Retention: Section 16(2) mandates that VASPs must "store the information obtained and held under subsection (1) for a period of not less than seven years from the date of the virtual asset transfer."

Declining Transfers: Section 16(4) states that "Where a virtual asset service provider is unable to comply with subsection (1), the virtual asset service provider shall decline the virtual asset transfer and make a report to the Financial Intelligence Unit."

General Offences (Section 34): "A person who contravenes a provision of this Act or the Regulations commits an offence and where no specific penalty is provided, is liable on summary conviction to a fine not exceeding EC$250,000 (approximately USD $92,500) or imprisonment for a term not exceeding 3 years, or both."

Offences by Body Corporate (Section 35): Where an offence is committed by a body corporate, and it's proven that a director, manager, secretary, or other similar officer consented or connived in the commission of the offence, they are also deemed to have committed the offence and liable to the same penalties.

Registration/Notification: VASPs are generally required to register with the FIU and/or notify the FIU of their operations, ensuring compliance with AML/CFT obligations. This is not a specific "license" but a requirement to operate legally under the AML/CFT regime.

Virtual asset businesses are designated as "reporting entities" under Grenada's Proceeds of Crime Act and other AML/CFT legislation.

Issue Public Warnings: GARFIN and the FIU have issued general warnings to the public about the risks associated with unregistered virtual asset businesses and the importance of due diligence.