Grenada Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Grenada Financial Services Authority, Primarily the UN Security Council, Grenada Authority for the Regulation of Financial Institutions, Eastern Caribbean Central Bank
Primary Legislation: The Act mandates that a licensee must, at all times, maintain sufficient capital
Travel Rule: Adopted — Threshold: $250,000
Tax Reporting: General Rule: Grenada does not impose a general capital gains tax on individuals or companies.. 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.. 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.. Active crypto trading (speculation, day trading, etc.). Mining operations conducted as a business

Key Facts

aml Financial Intelligence Unit (FIU) Grenada: This is the primary authority responsible for supervising and enforcing AML/CFT compliance for VASPs. Grenada Financial Services Authority (FSASG): While the FSASG regulates traditional financial services, its direct involvement in licensing or supervising dedicated crypto custody businesses (beyond potential overlap if the assets are deemed securities or fall under other regulated activities) is less clear compared to the FIU's role in AML/CFT. Proceeds of Crime Act, Cap. 254: This act defines money laundering offenses and establishes the framework for combating financial crime. Terrorism Act, Cap. 317: Addresses financing of terrorism. Financial Intelligence Unit Act, Cap. 109A: Establishes the FIU and its powers, including oversight of financial institutions and designated non-financial businesses and professions (DNFBPs), which now explicitly include VASPs. 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. 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: Exchange between virtual assets and fiat currencies.
custody Grenada Authority Regulating Financial Institutions (GARFIN): Responsible for overseeing financial services, including virtual asset service providers. Official site: https://www.fsra.gd Eastern Caribbean Central Bank (ECCB): Provides supplementary guidance on cryptocurrency risks across the Eastern Caribbean Currency Union (ECCU). Official site: https://eccb.org Virtual Asset Business Act, Act No. 7 of 2021: Sets out licensing and operational requirements for virtual asset service providers (VSPs) in Grenada. Exchange of fiat currency for virtual assets Issuance and redemption of stablecoins linked to virtual assets Provision of wallet services for digital asset storage Risk management framework (including AML/KYC policies) Financial statements and capital adequacy proof
enforcement Grenada Authority for the Regulation of Financial Institutions (GARFIN): This is the primary regulatory body for non-bank financial institutions and financial services in Grenada. It would likely oversee the licensing and conduct of Virtual Asset Service Providers (VASPs). 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. 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. 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. 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. Any enforcement has been handled privately, or through warnings and cease-and-desist orders without public financial penalties.
general 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. Proceeds of Crime Act, 2013 (as amended): This is Grenada's primary anti-money laundering legislation. It criminalizes money laundering offenses, provides for the investigation and confiscation of proceeds of crime, and establishes the legal framework for reporting suspicious transactions. VASPs are designated reporting entities under this Act. Terrorism Act, 2002 (as amended): This Act criminalizes terrorist financing offenses and provides for measures to prevent and combat terrorism, including the freezing of assets of designated terrorists. VASPs are also obligated to report any suspicious transactions related to terrorist financing. Virtual Asset Business Regulations, 2022 (S.R.O. No. 49 of 2022): These regulations provide further operational detail and guidance for the implementation of the VABA 2021, including specifics on licensing, compliance, and AML/CFT measures. Individuals: Obtain and verify the customer's full legal name, date of birth, residential address, nationality, and unique identification number (e.g., passport, national ID card, driver's license). Verification must be based on reliable, independent source documents or data. Legal Persons/Arrangements (e.g., companies, trusts): Obtain and verify the entity's legal name, legal form, proof of existence, powers that regulate and bind the entity, address of registered office and principal place of business, and the identity of directors, partners, or trustees. Beneficial Ownership: Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer. For legal persons, this typically involves identifying individuals who ultimately own or control more than a specified percentage (e.g., 25%) of the entity, or who exercise control through other means. Purpose and Intended Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or the occasional transaction. This helps in assessing the money laundering/terrorist financing (ML/TF) risk.
licensing Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. This covers all forms of virtual asset exchanges, whether fiat-to-crypto, crypto-to-fiat, or crypto-to-crypto. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. This explicitly covers virtual asset custodianship services. Provision of virtual asset payment services. Transfer of virtual assets. This includes businesses that facilitate payments using virtual assets or conduct transfers on behalf of others.
marketing Financial Services Regulatory Authority (FSRA) – Responsible for overseeing financial services in Grenada, including those related to digital assets and cryptocurrencies. Grenada Financial Services Act (2020) – Provides the statutory basis for FSRA's regulatory authority, encompassing provisions related to money laundering and terrorism financing that indirectly affect cryptocurrency marketing. Banking Companies Ordinance (1997) – While primarily focused on traditional banking, it includes clauses relevant to digital asset service providers operating under its purview. Grenada is a member of the Organisation for Economic Co-operation and Development (OECD) and adheres to recommendations from the Financial Action Task Force (FATF) regarding AML/CFT standards, which are applicable to cryptocurrency marketing activities. No specific license for cryptocurrency marketing agencies has been issued by the FSRA. Entities engaged in crypto-related marketing must ensure they fall under the scope of existing licenses (e.g., payment service providers, investment advisers) if applicable. Capital requirements: Not explicitly defined for digital asset marketing; compliance with general financial licensing thresholds applies if a license is sought. Application Process: Submission to FSRA through an online portal detailing the nature of services and compliance measures. Timeline typically ranges from 60–90 days post-submission.
sandbox Grenada Financial Services Authority (GFSA): Responsible for overseeing financial services and digital asset activities in Grenada. Website: https://www.gov.gd/ Governor-General of Grenada: Dame Cécile La Grenade, representing the Crown in the governance of financial regulatory matters. Prime Minister of Grenada: Hon. Dickon A. T. Mitchell, leading governmental policy formulation. Grenada Constitution Act (1995): Provides the constitutional basis for parliamentary authority to enact laws related to financial services and digital assets. Grenada is a member of the FATF, aligning its AML/CTF standards with global best practices. The country adheres to FATF Recommendations 2023, ensuring that digital asset service providers meet stringent due diligence and reporting obligations. Digital wallet provision for storing virtual assets. Submission of a comprehensive application package detailing business model, operational plan, AML/CTF policies, and beneficial ownership information. GFSA review period averaging 60–90 days, contingent on thoroughness of submission and follow-up clarifications.
securities Ministry of Finance, Grenada: Responsible for financial oversight and can influence regulatory frameworks related to digital assets indirectly through existing securities regulations. Contact: (473) 440-2731 / 2928 Chapter 299A Securities Act: Governs the issuance and trading of traditional securities in Grenada, though it does not explicitly reference digital assets or cryptocurrencies. Source: Chapter 299A SECURITIES ACT No Licensed Entities: No explicit licenses have been issued for cryptocurrency operations in Grenada. Regulatory Ambiguity: Businesses must navigate a gray area, potentially facing enforcement actions if their activities are deemed to involve securities or require AML/KYC compliance under existing laws. Customer Due Diligence (CDD): Includes identity verification and risk assessment. Enhanced Due Diligence (EDD): Required for higher-risk clients or transactions.
stablecoin Central Bank of Grenada (CBG): Responsible for overseeing payment systems, e-money issuance, and currency stability; expanding mandate to supervise digital asset activities. Securities and Exchange Commission (SEC) of Grenada: Regulates securities, including security tokens and tokenized real-world assets (RWAs). Financial Intelligence Unit (FIU) of Grenada: Enforces AML/CFT regulations. Anti-Money Laundering Regulations: Latest update in 2024, mandates KYC/AML procedures for VASPs. Data Protection Act: Requires data localization for sensitive personal data but permits cross-border transfers under safeguards. Grenada is part of FATF and Moneyval initiatives, aligning with global AML/CFT standards. However, specific stablecoin regulations are still being formulated. Virtual Asset Service Providers (VASPs), including exchanges, custodians, and stablecoin issuers. Entities involved in tokenized real-world assets (RWAs).
status Grenada Financial Services Authority (GFSA): Oversees financial institutions and implements AML/CFT measures. Website: Not directly listed in sources; assumed operational under government oversight. Integrity in Public Life Act: Mandates disclosure of income and assets for public servants, indirectly affecting crypto service providers handling large sums. (Source: Grenada – KnowYourCountry) Anti-Money Laundering Act (AMLA): Enforces AML/CFT standards aligned with FATF recommendations. No specific section numbers provided in sources, but compliance is implied through GFSA oversight. Grenada is not on the FATF List of Countries with strategic AML deficiencies and was deemed Compliant for 12 and Largely Compliant for 19 of the FATF 40 Recommendations in the last follow-up Mutual Evaluation Report from 2026. (Source: Grenada – KnowYourCountry) Entities Requiring License: No specific licensing regime for cryptocurrency exchanges or digital asset service providers exists in Grenada. Activities Requiring Licensing: General financial services (e.g., banking, payment processing) may indirectly affect crypto businesses under GFSA oversight. Capital Requirements: Not specified for crypto-related licenses; compliance relies on general AML/CFT capital adequacy standards.
tax General Rule: Grenada does not impose a general capital gains tax on individuals or companies. 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. 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. Active crypto trading (speculation, day trading, etc.) Mining operations conducted as a business Operating a cryptocurrency exchange or platform Providing crypto-related services (e.g., advisory, development, custody) Receiving crypto as payment for goods or services (treated as business revenue)
travel rule 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. Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset. Information Collection: VASPs must "obtain and hold the originator information and beneficiary information" as per FATF R.16. This includes names, physical addresses, unique transaction identifiers, and virtual asset wallet addresses for both originator and beneficiary.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-21. View full profile