Grenada Authority for the Regulation of Financial Institutions (GARFIN) — Grenada

Overview

GARFIN is the Grenada Authority for the Regulation of Financial Institutions, the regulatory authority for the non-bank financial sector in the island of Grenada. Operating as a Single Regulatory Unit (SRU), GARFIN promotes and maintains public confidence in the integrity of Grenada's financial system through effective regulation and supervision of designated non-bank financial institutions.

Grenada is a member of the Eastern Caribbean Currency Union (ECCU) and uses the Eastern Caribbean Dollar (EC$) as its legal tender, pegged to the US dollar at EC$2.70 = US$1.00 since 1976. The Eastern Caribbean Central Bank (ECCB) functions as the supranational central bank for the region, with authority over monetary policy and banking supervision in concert with national regulators like GARFIN.

GARFIN's mandate encompasses insurance companies, credit unions, international companies and trusts, money services businesses, building societies, friendly societies, and virtual asset businesses. The organization administers ten (10) enactments and associated subsidiary legislation, making it one of the more comprehensive regulators in the Caribbean non-bank financial services space.

Basic Identity

Primary Office:

Grenada Authority for the Regulation of Financial Institutions (GARFIN)

St. George's

Grenada

Website: https://garfin.gd/

Contact Page: https://garfin.gd/index.php/about-us

Legislation: https://www.garfin.gd/index.php/legislation

Organizational Structure:

GARFIN operates with a Board of Directors and a Chief Executive Officer responsible for day-to-day operations. Functional divisions include:

• Insurance regulation and supervision

• Credit unions and building societies supervision

• Money services business licensing and oversight

• Virtual asset service provider regulation

• AML/CFT compliance and suspicious activity reporting

• Enforcement and remediation

Sources:

• GARFIN — Official Website

• GARFIN — About Us

• GARFIN — Legislation

• GARFIN — Regulated Sectors

• Grenada Authority for the Regulation of Financial Institutions — Embassy of Grenada USA

• Eastern Caribbean Central Bank — About the ECCB

• Caribbean Financial Action Task Force (CFATF)

Document prepared: 2026-04-06 | Regulatory Intelligence Registry

Classification

Inclusion Justification

What This Entity Oversees

GARFIN supervises a diverse portfolio of non-bank financial service providers across multiple sectors:

Insurance Companies:

• Domestic and international insurance providers licensed to conduct business in or from Grenada.

• Life insurance: individual life policies, group insurance, annuities.

• Property and Casualty (P&C) insurance: homeowner's, commercial property, auto insurance, and specialized coverages.

• Health and accident insurance.

• Reinsurance companies.

• At least 26 (26) licensed insurance companies operate within GARFIN's regulatory ambit.

Insurance Intermediaries:

• Insurance brokers arranging insurance on behalf of clients.

• Insurance agents representing insurers.

• Insurance adjusters handling claims assessment and settlement.

• Insurance loss adjusters specializing in complex or large-value claims.

Credit Unions:

• Cooperative financial institutions providing member savings, lending, and financial intermediation services.

• Subject to capital adequacy, reserve, and member disclosure requirements.

• Ten (10) registered and functioning credit unions and one (1) cooperative league operate in Grenada under GARFIN supervision.

Building Societies:

• Savings and mortgage institutions focused on residential property financing.

• Regulated under Building Societies Act, Cap 38, with specialized prudential requirements.

Friendly Societies:

• Mutual aid and social insurance organizations providing member benefits and protection.

• Regulated under Friendly Societies Act, Cap 118.

Money Services Businesses (MSBs):

• Money transmitters and remittance service providers.

• Currency exchange and forex dealers.

• Cheque cashing and payment collection services.

• Prepaid card and stored value providers.

• Defined as non-financial businesses that transmit or convert money.

Virtual Asset Service Providers (VASPs):

• Cryptocurrency exchanges and trading platforms.

• Digital wallet and custody providers.

• Virtual asset payment processors and settlement providers.

• Subject to the Virtual Asset Business Act, No. 7 of 2021.

International Trusts and Companies:

• International Business Companies (IBCs) established in Grenada.

• International trust entities providing asset protection and estate planning services.

• International partnerships and similar structures.

Grenada Development Bank:

• State-owned development finance institution supervised by GARFIN.

While GARFIN's mandate focuses on non-bank financial services, Grenada maintains a separate securities regulatory framework. GARFIN coordinates with the appropriate securities authority to ensure comprehensive market coverage. Investment-related activities within GARFIN's ambit may include:

• Pension funds and retirement planning services.

• Asset management by insurance companies and trust providers.

• Investment advisory services offered by money services businesses or corporate service providers.

AML/CFT Framework:

Grenada has established a comprehensive AML/CFT regime incorporating FATF standards and regional CFATF directives. The framework applies across all financial institutions and designated non-financial businesses under GARFIN supervision.

Regulatory Requirements:

• Know-Your-Customer (KYC): Comprehensive customer identification, verification, and beneficial ownership disclosure.

• Enhanced Due Diligence (EDD): Elevated procedures for politically exposed persons (PEPs), high-risk jurisdictions, and complex structures.

• Suspicious Activity Reporting (SAR): Mandatory reporting of suspected money laundering, terrorist financing, or predicate offenses to the Financial Intelligence Unit (FIU) and law enforcement.

• Currency Transaction Reporting (CTR): Large cash transaction reporting exceeding prescribed thresholds.

• Record-Keeping: Minimum 5-year retention of transaction records and customer documentation.

• Compliance Policies: Institution-level written AML/CFT policies, procedures, and staff training programs.

ECCB Coordination:

The ECCB is designated as the AML/CFT supervisor for commercial banks in Grenada and other ECCU member states, applying a Risk-Based Supervision Framework. The ECCB and GARFIN coordinate on:

• Cross-sector supervisory information sharing.

• Coordinated examinations of entities with multiple regulatory touchpoints.

• Consistent application of international AML/CFT standards.

FATF/CFATF Engagement:

Grenada participates in the Caribbean Financial Action Task Force (CFATF), a FATF-style regional body. The jurisdiction has undergone mutual evaluations and continues to address any identified deficiencies through legislative and supervisory enhancements.

Regulatory Powers

GARFIN possesses comprehensive supervisory and enforcement authority under its enabling legislation:

Supervisory Powers:

• Licensing and Authorization: Approval of regulated entities; issuance of operating licenses and renewals.

• On-Site Examinations: Regular and ad-hoc inspections to assess capital adequacy, liquidity, compliance, and operational risk management.

• Off-Site Supervision: Quarterly and annual reporting requirements enabling remote supervisory oversight.

• Prudential Standards: Authority to set and enforce capital, reserve, and operational requirements.

• Directive Issuance: Power to compel corrective action through supervisory directives.

Enforcement Actions:

• Administrative Sanctions: Fines, restitution orders, and cease-and-desist orders.

• License Revocation or Suspension: Withdrawal of authorization for material violations or systemic non-compliance.

• Remediation Orders: Directives to cure capital deficiencies, governance weaknesses, or compliance failures.

• Criminal Referral: Cases involving money laundering, fraud, or terrorist financing are referred to the Royal Grenada Police and Attorney General's Office for prosecution.

• Receivership and Liquidation: Appointment of receivers for insolvent institutions to protect depositors and maintain market stability.

Recent Enforcement Activity:

GARFIN continues to strengthen supervision of emerging risk areas, including virtual asset service providers and cross-border money services businesses.

Regulatory Role and Function

Legal Foundation

Primary Legislation:

GARFIN's authority is derived from a comprehensive statutory framework addressing different segments of the non-bank financial services sector:

• Insurance Act, Cap 150 — Governs the licensing, supervision, and regulation of insurance companies, brokers, agents, and adjusters.

• Cooperative Societies Act, No. 8/2011 — Establishes the legal framework for credit unions operating as cooperative financial institutions.

• Building Societies Act, Cap 38 — Regulates building societies engaged in residential mortgage lending and savings mobilization.

• Friendly Societies Act, Cap 118 — Supervises friendly societies providing mutual aid and insurance-like benefits to members.

• Money Services Businesses Act, Cap 198A — Authorizes and supervises money transmitters, remittance operators, and currency exchange providers.

• Virtual Asset Business Act, No. 7 of 2021 — Establishes regulatory requirements for cryptocurrency exchanges, digital asset custodians, and related providers.

Subordinate Legislation:

GARFIN administers subsidiary regulations and rules derived from the primary legislation, including:

• Licensing regulations specifying conditions, fees, and application procedures.

• Prudential regulations covering capital adequacy, liquidity, and operational risk management.

• AML/CFT compliance rules and procedures.

• Consumer protection and dispute resolution guidelines.

International Compliance Framework:

• FATF AML/CFT Standards — Assessed through the Caribbean Financial Action Task Force (CFATF).

• IAIS Insurance Standards — Alignment with International Association of Insurance Supervisors principles.

• FATCA and CRS — Automatic information exchange and US tax compliance.

Licensing and Authorization Relevance

The Grenada Authority for the Regulation of Financial Institutions (GARFIN) — Grenada issues authorizations within its regulatory mandate in Grenada:

[Specific license types and requirements require verification from official sources]

Payments and Money Movement Relevance

The Grenada Authority for the Regulation of Financial Institutions (GARFIN) — Grenada has the following relevance to payments and money movement in Grenada:

Payment Systems Governed or Overseen

The Grenada Authority for the Regulation of Financial Institutions (GARFIN) — Grenada has the following relationship to payment infrastructure in Grenada:

This entity's role in payment systems is primarily regulatory and supervisory rather than operational. It does not directly operate national payment infrastructure but contributes to the regulatory framework governing payment activities in Grenada.

Relationship to Other Regulators

FATF/CFATF Participation:

Grenada is an active member of the Caribbean Financial Action Task Force (CFATF). GARFIN engages in:

• Mutual Evaluation Reports and follow-up assessments.

• Technical assistance and capacity-building on AML/CFT implementation.

• Information sharing on non-compliant entities and beneficial ownership disclosures.

Regional Coordination (ECCU):

GARFIN coordinates with other ECCB member state regulators (Antigua and Barbuda, Dominica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, and Montserrat) on:

• Cross-border supervisory cooperation for multi-jurisdictional entities.

• Enforcement coordination and information exchange.

• Harmonization of regulatory standards and best practices.

• Joint examination of complex structures and related-party transactions.

International Standards Adherence:

• FATF 40 Recommendations for AML/CFT and 9 Special Recommendations on terrorist financing.

• IAIS Insurance Core Principles for insurance regulation and supervision.

• Basel III prudential standards (coordinated via ECCB).

• IOSCO principles for market conduct (coordinated with securities regulator).

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Notes on Naming and Language