Grenada

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Partially Compliant.  New provision on the availability of updated ownership information for external companies that are resident in Grenada, for international companies and international trusts that are registered were introduced in December 2013.Since these new provisions are recent, the enforcement of the new provision could not be assessed.  Grenada should monitor the operation of the new provision on the availability of updated ownership information for external companies that are resident in Grenada, for international companies and international trusts that are registered.  
Grenada does not have a regular oversight program in place to monitor the compliance of the obligations to maintain or provide ownership and identity information imposed on companies under the CA and on professionals providing services to companies or financial services under the AML/CFT framework and the oversight program for International companies under the ICA is very recent.  Grenada should put in place an oversight program to ensure the compliance of the obligations to maintain or provide ownership and identity information for all relevant entities under the CA and the AML/CFT framework, monitor the oversight program put in place for the ICA and exercise its enforcement powers as appropriate to ensure that such information is available in practice. 
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  New provisions were introduced in December 2013 for international companies, international insurance companies, offshore banks and international trusts to keep underlying documentation for a minimum period of five years. In view of the short period between the introduction of the new provisions and the end of the period under review, the enforcement of the new provisions could not be assessed.  Grenada should monitor the operation of the new provisions on the availability of underlying documents for international companies, international insurance companies, offshore banks and international trusts. 
Grenada’s oversight program in place to control the compliance of the obligations for international companies to maintain accounting information, including underlying documents is very recent. Therefore no sanctions have been applied.  Grenada should monitor its oversight program to ensure the compliance of the obligations for international companies (including international insurance companies and offshore banks, if any) to maintain accounting information, including underlying documents, and exercise its enforcement powers as appropriate to ensure that such information is available in practice. 
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The oversight program to verify that banks and other financial institutions comply with their AML obligations was not yet implemented.   Grenada should implement its plan for a regular oversight program to ensure that banks and other financial institutions comply with their AML obligations to maintain identity information and exercise its enforcement powers. 
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  The access powers granted by the EOI Act have not been tested in practice during the period under review.   It is therefore recommended that Grenada continue to monitor access to information for EOI purposes to make sure that it is effective in all cases. 
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.  Grenada introduced exceptions to the prior notification procedure. However, considering the short period between the introduction of the exceptions and the end of the period under review, the application of the exceptions could not be assessed.   Grenada should monitor application of the exceptions to the prior notification procedure in practice. 
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Grenada should continue to develop its exchange of information network to the standard with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Grenada has committed resources and has in place organisational processes for exchange of information that appear to be adequate for dealing with EOI requests. Grenada did not process any EOI requests during the period under review. Consequently, the organisational processes have not been sufficiently tested in practice.  Grenada should monitor the practical implementation of the organisational processes for EOI requests as well as the level of resources committed to EOI purposes, in particular taking account of any significant changes to the volume of incoming EOI requests, to ensure that both the processes and level of resources are adequate for effective EOI in practice. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.