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Is Crypto Legal in Grenada?

Cryptocurrency is legal and regulated in Grenada. The jurisdiction has a comprehensive, dedicated crypto framework with licensing and active enforcement. Grenada Financial Services Authority is among the 3 regulators with oversight. The FATF Travel Rule is adopted. Tax treatment: General Rule: Grenada does not impose a general capital gains tax on individuals or companies..

Derived from 360 sourced facts for Grenada · last updated · primary sources

Comprehensive Framework Risk: unknown Updated 1 day ago Research: Grade B 0 of 99 facts verified

Overview

Grenada regulates virtual asset businesses under the Virtual Asset Business Act (VABA), administered by GARFIN (Grenada Authority for the Regulation of Financial Institutions), with licensing required for activities including fiat-to-virtual-asset exchange, virtual asset safekeeping, and participation in virtual asset issuance. AML/CFT supervision sits with the Financial Intelligence Unit (FIU), which enforces obligations derived from the Proceeds of Crime Act and FATF-aligned guidance, including Travel Rule compliance requiring collection, seven-year retention, and on-demand disclosure of originator and beneficiary information, with non-compliant transfers mandatorily declined and reported to the FIU. Firms must also maintain sufficient capital at all times and ensure directors or senior officers are ordinarily resident in Grenada or satisfy alternative arrangements approved by the Authority. (fiu.gov.gd, grenadagazette.gov.gd, eccb-centralbank.org)

Read the full travel-rule overview → AI-synthesized · 2026-07-12
VASP/CASP Registry: None — no registry data for this jurisdiction

Regulatory Bodies

Grenada Financial Services Authority

Grenada Financial Services Authority (FSA): The competent authority responsible for licensing, supervision, and enforcement of the Virtual Asset Business Act.

Grenada Authority for the Regulation of Financial Institutions

Potential "E-money" or "Payment System": If a stablecoin were designed to function purely as a medium of exchange pegged to a fiat currency, and widely accepted for payments, the ECCB or Grenada's financial regulators (like GARFIN, the…

Eastern Caribbean Central Bank

Significant Interaction: This is a crucial area of interaction.

Licensing Requirements

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AML/KYC Requirements

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No explicit classification: Grenada's existing laws do not explicitly define or classify stablecoins as e-money, payment tokens, or securities.

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Likely "Virtual Assets": Most commonly, stablecoins would be classified as "Virtual Assets" (VAs) under the Money Laundering and Terrorist Financing (Prevention and Control) Act and its accompanying regulations, which aim to align with the Financial Action Task Force (FATF) Recommendations on virtual assets and Virtual Asset Service Providers (VASPs). This broad classification primarily triggers AML/CFT obligations.

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Grenada's primary anti-money laundering legislation is the Money Laundering (Prevention) Act (Chapter 197A), hosted on the official Parliament of Grenada website. The current Financial Intelligence Unit (FIU) of Grenada operates at grenadafiu.com and does not host this legislation at fiu.gov.gd. No Grenada-specific law titled 'Money Laundering and Terrorist Financing (Prevention and Control) Act' was found.

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FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (VASPs): https://www.fatf-gafi.org/media/fatf/documents/recommendations/RBA-VA-VASPs.pdf (Grenada, as a FATF member, is expected to implement these).

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Potential "E-money" or "Payment System": If a stablecoin were designed to function purely as a medium of exchange pegged to a fiat currency, and widely accepted for payments, the ECCB or Grenada's financial regulators (like GARFIN, the Grenada Authority for the Regulation of Financial Institutions) might consider it a form of e-money or a component of a payment system, which would attract a higher level of prudential regulation. However, explicit definitions for stablecoins in this context are absent.

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No specific stablecoin reserve requirements: As there is no specific stablecoin legislation, there are no explicit reserve requirements mandated for private stablecoin issuers in Grenada.

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Prudential requirements via sandbox: If an entity were to issue a stablecoin and operate under the ECCB Fintech Regulatory Sandbox, the ECCB would likely impose prudential requirements, including robust reserve backing, independent audits, segregation of client funds, and capital adequacy, similar to traditional financial institutions.

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ECCB Fintech Regulatory Sandbox Framework: Available on the ECCB website. (General search: eccb-centralbank.org/p/fintech-regulatory-sandbox)

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No specific "stablecoin issuer license": There is no designated license category for stablecoin issuers.

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VASP Registration/Licensing: If an entity provides services related to stablecoins (e.g., exchange, transfer, custody), it would likely be deemed a "Virtual Asset Service Provider" (VASP) under Grenada's AML/CFT framework and would be required to register with or be licensed by the Grenada Financial Intelligence Unit (FIU) or another designated authority, subject to the scope of the local AML/CFT laws.

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FIU Grenada: https://www.fiu.gov.gd/ (Responsible for AML/CFT oversight and VASP registration if specified in local regulations).

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ECCB Licensing/Sandbox: For any significant operation that might resemble banking, e-money issuance, or payment systems, the issuer would likely need to engage with the ECCB. The ECCB Fintech Regulatory Sandbox is the most probable avenue for licensed experimentation and operation for innovative financial products, including potentially stablecoins, within the ECCU. Any private stablecoin intending to circulate widely as a payment instrument would likely require explicit approval or licensing from the ECCB.

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No specific statutory redemption rights: In the absence of specific stablecoin regulation, there are no statutory redemption rights explicitly defined for stablecoin holders in Grenada.

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Contractual & General Consumer Protection: Redemption rights would primarily be governed by the terms and conditions set by the stablecoin issuer. General consumer protection laws would apply, but specific mechanisms for crypto assets are not outlined.

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Sandbox Conditions: Within the ECCB Sandbox, clear and robust redemption mechanisms (e.g., 1:1 redemption for fiat) would be a mandatory condition for approval to ensure consumer protection and stability.

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Grenada does have specific rules regarding algorithmic stablecoins within the ECCB framework.

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High Risk/Skepticism: Due to the inherent instability risks associated with algorithmic stablecoins, any proposal for such a product would likely face extreme scrutiny and skepticism from the ECCB and Grenadian regulators, making approval highly unlikely under current conditions. They would likely fall under the broader "virtual asset" classification but would struggle to meet any prudential or stability requirements if considered for broader use.

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Significant Interaction: This is a crucial area of interaction. The Eastern Caribbean Central Bank (ECCB) has already launched and implemented DCash, its own retail Central Bank Digital Currency (CBDC), across the ECCU, including Grenada.

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Monetary Sovereignty: The existence and successful rollout of DCash mean that the ECCB is actively involved in the digital currency space. Any private stablecoin seeking to function as a general payment instrument within Grenada would be viewed in the context of DCash and the ECCB's role in maintaining monetary and financial stability.

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Competitive Landscape & Oversight: The ECCB would likely scrutinize private stablecoins that could potentially compete with or undermine the monetary sovereignty provided by DCash. While the ECCB encourages innovation through its sandbox, private stablecoins that aim for widespread adoption as a currency substitute would likely require rigorous oversight and potentially face significant regulatory hurdles to ensure they do not disrupt the financial system or compromise the integrity of the currency union.

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Grenada participated in the ECCB's DCash pilot starting in March 2021, but the ECCB has since shifted its focus from DCash to a broader fast payments system (FPS), making the original DCash initiative page outdated as a current representation of Grenada's digital currency landscape.

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Travel Rule

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Tax Reporting

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General Rule: Grenada does not impose a general capital gains tax on individuals or companies.

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Application to Crypto: Therefore, profits derived from the mere holding and disposal of cryptocurrency as an investment asset, without the activity constituting a "trade or business," are generally not subject to capital gains tax in Grenada.

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Important Distinction: This exemption typically applies to long-term passive investments. If the activities are deemed to be a "trade or business," the profits would then be treated as income and subject to income tax (see below). The distinction depends on factors like frequency of trades, intent, organization, and scale of activity.

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Active crypto trading (speculation, day trading, etc.)

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Mining operations conducted as a business

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Operating a cryptocurrency exchange or platform

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Providing crypto-related services (e.g., advisory, development, custody)

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Receiving crypto as payment for goods or services (treated as business revenue)

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Income from staking, lending, or other DeFi activities, if structured as a business or part of one.

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Profits from crypto trading or other crypto-related business activities would be aggregated with other income and taxed at progressive rates.

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First EC$24,000 of chargeable income: Exempt

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Next EC$36,000 (i.e., income from EC$24,001 to EC$60,000): 10%

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Chargeable income exceeding EC$60,000: 25%

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Deductible Expenses: Expenses directly and exclusively incurred in generating such income (e.g., electricity for mining, software subscriptions, trading fees) are generally deductible.

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Companies legally registered in Grenada and engaged in crypto-related activities (e.g., operating an exchange, a mining farm, a blockchain development firm) will have their net profits taxed at the corporate income tax rate.

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Rate: The standard corporate income tax rate in Grenada is 28%.

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Deductible Expenses: Normal business expenses are deductible in calculating taxable profit.

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Services provided for a fee related to cryptocurrency are generally subject to VAT if the provider is VAT-registered and the services are rendered in Grenada. Examples include

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Transaction fees charged by a cryptocurrency exchange.

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Brokerage or advisory services related to crypto.

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Custodial services for virtual assets.

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Software development services for blockchain applications.

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Consulting fees for crypto strategies.

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Businesses making taxable supplies over a certain threshold (currently EC$200,000 per annum) are required to register for VAT, charge VAT on their taxable supplies, and remit it to the tax authorities.

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If an individual derives income from crypto activities that are considered a trade or business, this income must be declared on their annual Personal Income Tax (PIT) return.

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Even if capital gains are not taxable, it is prudent to maintain records of all crypto transactions, including acquisition dates, costs, and disposal proceeds, to demonstrate that activities do not constitute a trade or business if questioned by tax authorities.

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Companies engaged in crypto-related activities must file annual Corporate Income Tax (CIT) returns, declaring all income and claiming eligible deductions.

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Businesses registered for VAT must file periodic VAT returns (usually monthly or quarterly) and remit the collected VAT to the Inland Revenue Department.

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Record Keeping: All taxpayers (individuals and businesses) are required to maintain proper records of all transactions, income, and expenses for a specified period (typically 7 years) to support their tax filings.

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AML/CTF Reporting: While not strictly tax, financial institutions and certain designated non-financial businesses and professions (DNFBPs), which could include crypto exchanges or service providers, have reporting obligations under Grenada's Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) laws. This includes reporting suspicious transactions to the Financial Intelligence Unit (FIU).

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Note: You may need to navigate their site to find the specific Income Tax Act, VAT Act, and any public notices or guidance documents. These are often found under sections like "Legislation," "Tax Laws," or "Publications."

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Note: While not a direct tax authority, it's the official portal for legislative updates and government policy.

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While primarily a financial regulator and not a tax authority, GARFIN may issue guidance or regulations related to virtual assets that could have indirect tax implications or precede specific tax legislation.

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Custody Requirements

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Grenada Authority Regulating Financial Institutions (GARFIN): Responsible for overseeing financial services, including virtual asset service providers. Official site: https://www.fsra.gd

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Eastern Caribbean Central Bank (ECCB): Provides supplementary guidance on cryptocurrency risks across the Eastern Caribbean Currency Union (ECCU). Official site: https://eccb.org

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Virtual Asset Business Act, Act No. 7 of 2021: Sets out licensing and operational requirements for virtual asset service providers (VSPs) in Grenada.

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Exchange of fiat currency for virtual assets

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Issuance and redemption of stablecoins linked to virtual assets

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Provision of wallet services for digital asset storage

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Risk management framework (including AML/KYC policies)

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Financial statements and capital adequacy proof

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Identity verification of key personnel

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Stablecoin Regulation

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Securities Classification

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Ministry of Finance, Grenada: Responsible for financial oversight and can influence regulatory frameworks related to digital assets indirectly through existing securities regulations.

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Chapter 299A Securities Act: Governs the issuance and trading of traditional securities in Grenada, though it does not explicitly reference digital assets or cryptocurrencies.

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Source: Chapter 299A SECURITIES ACT

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Sanctions & Restrictions

Sanctions data collection in progress.

Enforcement Actions

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Financial Intelligence Unit (FIU) of Grenada: The FIU is responsible for receiving, analyzing, and disseminating financial information concerning suspected proceeds of criminal activity and terrorist financing. They would be involved in AML/CFT compliance for virtual assets.

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Virtual Asset Business Act (VABA), 2020: This Act provides the framework for the regulation of virtual asset businesses in Grenada, requiring them to be licensed by GARFIN and comply with AML/CFT requirements.

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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.

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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.

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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.

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

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Any enforcement has been handled privately, or through warnings and cease-and-desist orders without public financial penalties.

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The focus has primarily been on establishing and implementing the regulatory framework rather than major punitive actions against specific entities being publicly announced.

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While the site provides information on regulated entities and laws, it does not have a dedicated "enforcement actions" section for crypto with the requested details.

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Similar to GARFIN, the FIU website outlines its mandate and provides general guidance but does not list specific crypto enforcement actions.

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This legislation is foundational for crypto regulation in Grenada. Accessing the full text usually requires searching the Grenada Government Gazette or legislative databases, e.g., via the ECCB website which often links to regional legislation: https://www.eccb-centralbank.org/p/grenada-financial-sector-legislation

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Regulatory Forecast

high confidence

Likely enforcement action expected around 2026-09-25

Based on 77 historical regulatory events for Grenada, averaging every 2 days, with increasing regulatory activity.

Trend: Increasing Data points: 77 Avg frequency: 2 days Last action: 2026-09-23

Recent Updates

2026-04-22(6 months ago)
medium GD

Proceeds of Crime Act, Cap. 254: This act defines money laundering offenses and establishes the framework for com...

Proceeds of Crime Act, Cap. 254: This act defines money laundering offenses and establishes the framework for combating financial crime.

enforcement View article →
2026-04-22(6 months ago)
medium GD

Guidance for Virtual Asset Service Providers (VASPs): The FIU has issued guidance notes to clarify the applicatio...

Guidance for Virtual Asset Service Providers (VASPs): The FIU has issued guidance notes to clarify the application of AML/CFT requirements to VASPs, in line with Financial Action Task Force (FATF) recommendations. This guidance is the most relevant document for crypto businesses.

2026-04-22(6 months ago)
medium GD

VASP Definition: The FIU's guidance defines a VASP consistent with FATF recommendations, which includes any natur...

VASP Definition: The FIU's guidance defines a VASP consistent with FATF recommendations, which includes any natural or legal person who, as a business, conducts one or more of the following activities for or on behalf of another natural or legal person:

enforcement View article →
2026-04-22(6 months ago)
high GD

This is typically a prudential requirement found in dedicated financial services legislation for regulated entities (...

This is typically a prudential requirement found in dedicated financial services legislation for regulated entities (banks, securities firms), which is not yet fully applied to standalone crypto custodians in Grenada.

2026-04-22(6 months ago)
high GD

No specific definition: The concept of a "qualified custodian" as defined by bodies like the US SEC (e.g., banks,...

No specific definition: The concept of a "qualified custodian" as defined by bodies like the US SEC (e.g., banks, registered broker-dealers, trust companies) does not have a direct, equivalent legal definition within Grenadian legislation specifically for digital assets.

enforcement View article →
2026-04-22(6 months ago)
medium GD

No publicly available information on specific custody legislation: As of the last review, there is no widely publ...

No publicly available information on specific custody legislation: As of the last review, there is no widely publicized or pending legislation in Grenada that specifically introduces a dedicated licensing regime for digital asset custody services with detailed prudential requirements (like asset segregation, insurance, or cold storage mandates) beyond the existing VASP AML/CFT framework.

2026-04-22(6 months ago)
medium GD

Grenada Financial Services Authority (FSA): The competent authority responsible for licensing, supervision, and e...

Grenada Financial Services Authority (FSA): The competent authority responsible for licensing, supervision, and enforcement of the Virtual Asset Business Act.

enforcement View article →
2026-04-22(6 months ago)
medium GD

The Proceeds of Crime Act (Cap 253 of the Continuous Revised Laws of Grenada): This Act primarily deals with mone...

The Proceeds of Crime Act (Cap 253 of the Continuous Revised Laws of Grenada): This Act primarily deals with money laundering and the seizure/confiscation of proceeds of crime. While not directly a sanctions law, it underpins the AML framework that obliges financial institutions to conduct due diligence, including sanctions screening.

2026-04-22(6 months ago)
medium GD

The Financial Intelligence Unit Act (Cap 108 of the Continuous Revised Laws of Grenada): This Act establishes the...

The Financial Intelligence Unit Act (Cap 108 of the Continuous Revised Laws of Grenada): This Act establishes the Financial Intelligence Unit (FIU) of Grenada, which is the central agency for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial information related to money laundering and terrorist financing. The FIU provides guidance to reporting entities on their AML/CFT obligations, including sanctions compliance.

enforcement View article →
2026-04-22(6 months ago)
high GD

UN Sanctions (Mandatory): As a UN member state, Grenada is legally obligated to implement all UN Security Council...

UN Sanctions (Mandatory): As a UN member state, Grenada is legally obligated to implement all UN Security Council Resolutions. This means VASPs must screen against the UN Security Council Consolidated List of individuals and entities subject to asset freezes, travel bans, and arms embargoes.

enforcement View article →
2026-04-22(6 months ago)
medium GD

OFAC Sanctions (Highly Recommended/De Facto Standard): While U.S. Office of Foreign Assets Control (OFAC) sanctio...

OFAC Sanctions (Highly Recommended/De Facto Standard): While U.S. Office of Foreign Assets Control (OFAC) sanctions are primarily binding on U.S. persons and entities, they have significant extra-territorial reach due to the global nature of finance and the U.S. dollar's role. Any Grenadian VASP engaging in transactions with U.S. persons, using U.S. dollar stablecoins, or interacting with U.S.-regulated financial infrastructure will be indirectly subject to OFAC sanctions. Most international financial institutions and payment processors (even crypto-related ones) will require screening against OFAC lists. Failure to comply can lead to being cut off from crucial financial services.

enforcement View article →
2026-04-22(6 months ago)
medium GD

Screen Against De Facto International Lists: OFAC SDN List, EU Consolidated List, and potentially the UK Sanction...

Screen Against De Facto International Lists: OFAC SDN List, EU Consolidated List, and potentially the UK Sanctions List, are essential for managing international risk and maintaining correspondent relationships.

enforcement View article →
2026-04-22(6 months ago)
medium GD

Virtual Asset Addresses: While not explicitly on sanctions lists, crypto analytics tools are crucial for identify...

Virtual Asset Addresses: While not explicitly on sanctions lists, crypto analytics tools are crucial for identifying addresses linked to sanctioned entities, ransomware, terrorist groups, or darknet markets, which would trigger STRs.

enforcement View article →
2026-04-22(6 months ago)
high GD

UN, OFAC, and EU Sanctioned Jurisdictions: Grenadian VASPs must prohibit transactions with or services to countri...

UN, OFAC, and EU Sanctioned Jurisdictions: Grenadian VASPs must prohibit transactions with or services to countries subject to comprehensive sanctions (e.g., Cuba, Iran, North Korea, Syria, specific regions of Ukraine/Russia subject to comprehensive sanctions).

enforcement View article →
2026-04-22(6 months ago)
high GD

Grenada-Specific Geographic Restrictions: Grenada does not impose its own comprehensive geographic sanctions beyo...

Grenada-Specific Geographic Restrictions: Grenada does not impose its own comprehensive geographic sanctions beyond those it implements under UN mandates. However, the FIU Grenada may issue guidance on high-risk jurisdictions for AML/CFT purposes.

enforcement View article →
2026-04-22(6 months ago)
high GD

Regulatory Sanctions: Beyond criminal penalties, the relevant regulatory authority (e.g., GARFIN or the FIU) can ...

Regulatory Sanctions: Beyond criminal penalties, the relevant regulatory authority (e.g., GARFIN or the FIU) can impose administrative penalties, revoke licenses (if a licensing regime is in place), issue public reprimands, and take other enforcement actions.

enforcement View article →
2026-04-22(6 months ago)
medium GD

No explicit classification: Grenada's existing laws do not explicitly define or classify stablecoins as e-money, ...

No explicit classification: Grenada's existing laws do not explicitly define or classify stablecoins as e-money, payment tokens, or securities.

enforcement View article →
2026-04-22(6 months ago)
high GD

ECCB Licensing/Sandbox: For any significant operation that might resemble banking, e-money issuance, or payment s...

ECCB Licensing/Sandbox: For any significant operation that might resemble banking, e-money issuance, or payment systems, the issuer would likely need to engage with the ECCB. The ECCB Fintech Regulatory Sandbox is the most probable avenue for licensed experimentation and operation for innovative financial products, including potentially stablecoins, within the ECCU. Any private stablecoin intending to circulate widely as a payment instrument would likely require explicit approval or licensing from the ECCB.

2026-04-22(6 months ago)
medium GD

No specific statutory redemption rights: In the absence of specific stablecoin regulation, there are no statutory...

No specific statutory redemption rights: In the absence of specific stablecoin regulation, there are no statutory redemption rights explicitly defined for stablecoin holders in Grenada.

enforcement View article →
2026-04-22(6 months ago)
high GD

Significant Interaction: This is a crucial area of interaction. The Eastern Caribbean Central Bank (ECCB) has...

Significant Interaction: This is a crucial area of interaction. The Eastern Caribbean Central Bank (ECCB) has already launched and implemented DCash, its own retail Central Bank Digital Currency (CBDC), across the ECCU, including Grenada.

2026-04-22(6 months ago)
medium GD

General Offences (Section 34): "A person who contravenes a provision of this Act or the Regulations commits an of...

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."

enforcement View article →
2026-04-30(5 months ago)
medium GD

Virtual Asset Business Act, 2021 (VABA 2021): This is the cornerstone legislation specifically addressing virtual...

Virtual Asset Business Act, 2021 (VABA 2021): This is the cornerstone legislation specifically addressing virtual assets and VASPs. It defines what constitutes a virtual asset and a virtual asset business, mandates registration/licensing for VASPs, and subjects them to AML/CFT obligations. It explicitly brings VASPs under the regulatory purview, requiring them to comply with AML/CFT standards consistent with FATF recommendations GARFIN

2026-04-30(5 months ago)
medium GD

Grenada Authority for the Regulation of Financial Institutions (GARFIN): GARFIN is the designated regulatory and ...

Grenada Authority for the Regulation of Financial Institutions (GARFIN): GARFIN is the designated regulatory and supervisory authority for VASPs under the Virtual Asset Business Act, 2021. It is responsible for licensing, supervision, and enforcement of AML/CFT and prudential requirements for VASPs. This includes conducting onsite and offsite inspections, issuing guidelines, and imposing sanctions for non-compliance GARFIN

enforcement View article →
2026-04-30(5 months ago)
medium GD

Date: Enacted in 2020 FSA Grenada

Date: Enacted in 2020 FSA Grenada

2026-04-30(5 months ago)
medium GD

Date: Various amendments, with the most recent version forming the basis for AML/CFT FSA Grenada

Date: Various amendments, with the most recent version forming the basis for AML/CFT FSA Grenada

2026-08-21(2 months ago)
high GD

The Grenada Securities Act, Chapter 299A, establishes a comprehensive regulatory framework for securities markets in ...

The Grenada Securities Act, Chapter 299A, establishes a comprehensive regulatory framework for securities markets in Grenada.

2026-08-21(2 months ago)
medium GD

Securities issued in Grenada are subject to specific tax provisions outlined in the Income Tax Act, affecting both is...

Securities issued in Grenada are subject to specific tax provisions outlined in the Income Tax Act, affecting both issuers and investors.

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