Suriname – Know Your Customer (KYC) Rules

 

 

Suriname is not a regional financial center. Narcotics-related money laundering is closely linked to transnational criminal activity related to the transshipment of cocaine to the United States, Europe, and Africa. Domestic drug trafficking organizations and organized crime, with links to international groups, are thought to control much of the money laundering proceeds, which are invested in casinos, real estate, cambios (foreign exchange companies), the construction sector and car dealerships.

Goods are smuggled into Suriname over the land/river borders with Guyana, Brazil, and French Guiana, as well as via vessels. Other goods are ―smuggled‖ into Suriname via deceptive bills of lading, via the shipping ports. This is done mainly to avoid paying higher import duties. There is little evidence to suggest this is significantly funded by narcotics proceeds or other illicit proceeds. Contraband smuggling is not believed to generate funds that are laundered through the financial system.

Suriname is not an offshore financial center and has no free trade zones. Offshore banks and shell companies are not permitted. There is a thriving informal sector fueled by large profits from a growing small-scale gold mining sector and the industries that support it that may be vulnerable to money laundering. Suriname‘s significant informal economy is not linked to the majority of money laundering proceeds; rather, they are moved through various corporate entities within the formal economy.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: NO
    • Domestic PEP: NO

Suriname – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Suriname Law:

    • Banks and credit unions
    • Asset managers
    • Securities brokers and dealers
    • Insurance agents and companies
    • Currency brokers, remitters, and exchanges
    • Auditors, accountants, notaries, lawyers
    • Real estate agents
    • Dealers in gold or other precious metals and stones
    • Gaming entities and lotteries
    • Motor vehicle dealers

Suriname – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 61,852,018 in 2010

The following is a list of STR covered entities covered by Suriname Law:

    • Banks and credit unions
    • Asset managers
    • Securities brokers and dealers
    • Insurance agents and companies
    • Currency brokers, remitters, and exchanges
    • Auditors, accountants, notaries, lawyers
    • Real estate agents
    • Dealers in gold or other precious metals and stones
    • Gaming entities and lotteries
    • Motor vehicle dealers

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: Not available
Convictions: Not available

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

Concerns have been raised about the effectiveness and speed with which the Government of Suriname (GOS) is addressing international concerns about its money laundering and terrorist financing legislation. The government should swiftly work to address these concerns and provide additional data about its actions. The country should move quickly to fully implement customer identification (especially for politically exposed persons) and unusual transaction reporting procedures. Additionally, Suriname should ensure covered entities are subject to adequate supervision and enforcement programs.

Additional efforts need to be made to ensure border enforcement. Customs and appropriate law enforcement need to investigate trade fraud and illicit value transfer. The GOS should become party to the International Convention for the Suppression of the Financing of Terrorism and the UN Convention against Corruption.