Grenada To Ensure Adherence To Tax Standards

by Amanda Banks, Tax-News.com, London

16 February 2012

The government of Grenada has established a high-level committee of public and private sector individuals to aid the government in overhauling legislation regulating the territory's financial services sector to ensure adherence to international standards.

In a statement on February 13, the Grenada government underscored its commitment to implementing international standards to promote tax transparency and tax information exchange on request. It also stressed its commitment to meeting the requirements set out by the Financial Action Task Force (FATF) on combating of anti-money laundering and the financing of terrorism.

The government announced that in order to ensure that it is fully meeting international expectations in terms of preventing money laundering or the financing of terrorism it has imposed a moratorium on licenses granted to financial institutions under existing international financial services legislation. The government said that the moratorium would provide the government with time to ensure that all of the island's financial services legislation can be reviewed, assessed and benchmarked against OECD tax information exchange standards and the anti-money laundering Recommendations of the FATF.

The newly-formed committee is expected to conduct a review of all applicable legislation by the middle of 2012 for government consideration.

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