Grenada Grey/Black List: Status, Reasons and Outlook

Grenada on the Global Watchlists: What "Grey" and "Black" Really MeanCopy link to section

For a foreign owner weighing where to incorporate, the grey/black list question in Grenada comes down to a clear answer: the country sits on neither the EU blacklist nor the EU grey list, and it appears on no FATF public watchlist. The only active international compliance process attached to it is enhanced follow-up under the Caribbean Financial Action Task Force, a regional mechanism that stops well short of any high-profile designation.

A "blacklist" generally names jurisdictions deemed non-cooperative, triggering defensive measures by member states. A "grey list" is a softer category for places that have made commitments and are being monitored while they implement them.

These terms are used by different bodies for different purposes, and a country can be clean on one while flagged by another. Grenada's record, set out in the EU Council timeline, shows a brief listing episode in 2017 to 2018 followed by full clearance since 2019.

This article explains which bodies maintain these lists, where the country stands on each, how it got there, and what that means for a non-resident operating a company there. It is most relevant to foreign investors, company owners, and the advisers assessing reputational and banking exposure before they commit.

The Listing Bodies That Matter for Grenada: EU, FATF, OECD and BeyondCopy link to section

Several international bodies maintain separate lists, each with its own scope and consequences. Confusing one for another is the most common error advisers make when assessing a Caribbean structure.

The EU list is administered by the Code of Conduct Group for Business Taxation and monitored by the European Commission. Annex I is the blacklist; Annex II is the grey, or state-of-play, list.

FATF sets the 40 Recommendations that define global AML/CFT standards. Its assessment of the country was carried out through CFATF, the FATF-style regional body of which the country is a member.

Two further points concern matters where verified data is thin. There is no confirmed public record of a US FATCA intergovernmental agreement here, for which the IRS FATCA portal is the authoritative check; the EU's separate anti-money-laundering list is distinct from the tax list, and the country's status on it is not publicly confirmed.

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Grenada's Current Status Across All Lists at a GlanceCopy link to section

The headline is straightforward: clean of the EU blacklist, clean of the EU grey list, absent from every FATF public listing, and a committed participant in the OECD's automatic exchange standard.

On the most recent EU revision of 17 February 2026, Annex I named ten jurisdictions and Annex II named nine. The country appears on neither.

Within the FATF system, it is rated Compliant or Largely Compliant on 21 of the 40 Recommendations and remains under CFATF enhanced follow-up. That follow-up is a regional remediation track, not a FATF public listing.

EU Listing History: Annex I (Blacklist) and Annex II (Greylist) EpisodesCopy link to section

The country's exposure to EU listing was brief and is now well behind it. The episode is worth understanding because it shows how quickly a jurisdiction can move through the categories once political commitments are made.

• 5 December 2017 — The first EU list of non-cooperative jurisdictions was adopted, with 17 territories on Annex I. The country was among those 17.
• 23 January 2018 — Delisted from Annex I and moved to Annex II, following commitments made at a high political level. Eight jurisdictions were removed from the blacklist in this round.
• By March 2019 — Fully cleared from Annex II. Of the original 2017 list, 25 jurisdictions, including this one, had been removed by that point.

Time on the blacklist ran to roughly seven weeks. Time on the grey list ran to about 14 months.

No further EU listing episode has occurred since March 2019. The country is confirmed absent from every revision through 17 February 2026, a clean run of more than six years.

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FATF and CFATF Assessments: Grenada's AML/CFT StandingCopy link to section

The country's anti-money-laundering standing is assessed by CFATF using the FATF methodology. An on-site evaluation visit took place from 14 to 25 June 2021, and the resulting Mutual Evaluation Report was published in 2022 under the fourth-round methodology.

A follow-up report in 2025 recorded measurable progress. CFATF re-rated the country on four of the 40 Recommendations, bringing it to Compliant or Largely Compliant on 21 of them; it remains in enhanced follow-up on the basis of its technical compliance and effectiveness ratings.

FATF began its fifth round of evaluations under the 2022 methodology in 2024, with regional bodies adopting it once they finish their current rounds. The timing of the country's next full CFATF round evaluation is not yet publicly confirmed. The full ratings detail sits in the 2022 evaluation report.

OECD and Global Forum Reviews: Tax Transparency and CooperationCopy link to section

On the tax-transparency side, the country is a member of the OECD Global Forum and takes part in its peer review process. A second-round Phase 1 EOIR peer review was published in 2024; the specific rating outcome is set out in that report rather than summarised here.

It has committed to the Common Reporting Standard for automatic exchange of information, grouped with other Caribbean states that joined outside the 2014 early-adopter wave, and is listed among jurisdictions that have commenced CRS reporting. For a non-resident, this means financial account data is reported annually to the account holder's home tax authority.

Under BEPS Action 5, more than 140 countries and jurisdictions participate in the Inclusive Framework. A 2024 peer review report on the exchange of information on tax rulings was published specifically for the country, titled Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings: Grenada.

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Reasons Cited for Listing and the Commitments Made for DelistingCopy link to section

The 2017 EU listing followed a screening of 92 jurisdictions against criteria covering tax transparency, fair taxation, and anti-BEPS standards. Territories placed on Annex I were those that had not made sufficient commitments in response to the EU's concerns.

In January 2018, the Council accepted that delisting was justified after an expert assessment of the commitments made, each backed by letters signed at a high political level. The move to Annex II marked a jurisdiction the EU still had concerns about but considered to be improving.

Full clearance by March 2019 confirmed that all commitments had been delivered. The specific reforms enacted are documented in the commitment letters published by the EU Council rather than reproduced here.

Practical Consequences for Non-Resident Owners: Banking, Due Diligence and PerceptionCopy link to section

For a foreign-owned entity, the practical position is favourable on most fronts and carries one residual caveat.

• EU defensive measures: none apply. Because the country is on neither Annex I nor Annex II, the member-state measures that target blacklisted jurisdictions (non-deductibility of costs, controlled-foreign-company rules, withholding taxes, denial of participation exemptions) do not reach structures based here.
• CFATF enhanced follow-up: residual perception risk. Although not a FATF public listing, the follow-up status signals to correspondent banks that the AML/CFT framework is still under remediation, which can prompt heightened due diligence by European and North American banks.
• CRS reporting is automatic. Account information of non-resident holders at local financial institutions is reported each year to their home tax authority, so the jurisdiction offers no financial privacy from a foreign owner's home country.
• No FATF-driven blanket EDD. Absence from FATF's monitoring list means no global enhanced due diligence obligation is triggered by FATF standards alone.

No specific public data was found on local correspondent-banking de-risking episodes or on individual EU member-state defensive measures applied to the country, so those points should be checked against current banking practice when arranging accounts.

How Grenada Compares With Its Caribbean NeighboursCopy link to section

Set against its regional peers, the country's EU compliance record is among the cleaner in the area. Several neighbours remain listed where it does not.

Anguilla and Turks and Caicos, both British Overseas Territories, sit on the blacklist, while Belize and the British Virgin Islands remain on the grey list. Trinidad and Tobago was on Annex I as recently as October 2025 before being removed for addressing long-standing deficiencies, and Antigua and Barbuda left Annex II in the same February 2026 update.

On the AML/CFT side, the picture is more uniform across the sub-region. The country is in CFATF enhanced follow-up alongside several ECCU and CARICOM peers, with neighbours such as St Vincent and the Grenadines also working through technical compliance deficiencies from their own evaluations.

Outlook: Where Grenada's Listing Status Is HeadingCopy link to section

The EU position looks stable. With a clean run of more than six years and no screening criterion currently flagging it, no public signal of re-listing risk exists; the EU list is revised twice yearly, with the next update expected in October 2026.

CFATF follow-up is trending upward. Re-ratings on four Recommendations and a current standing of 21 of 40 at Compliant or Largely Compliant point toward eventual exit from enhanced follow-up, provided progress continues.

FATF public listing is not on the horizon; CFATF follow-up remains the more proximate mechanism. CRS and AEOI reviews will continue as the regional body progressively adopts the 2022 FATF methodology, with the timing of the next full evaluation round not yet publicly confirmed.

ConclusionCopy link to section

A foreign owner can treat the country as a clean jurisdiction for EU tax-list purposes, with no defensive measures applying to local structures and no FATF public designation in play. The one qualifier is CFATF enhanced follow-up, which may attract extra scrutiny from correspondent banks but carries none of the legal consequences of a formal listing. CRS participation means account data is reported home automatically, so the jurisdiction should not be chosen for privacy from a home tax authority. Keeping an eye on the next Global Forum EOIR review is the prudent step, since that outcome is the only realistic route back onto an EU list.

How Expanship Can Help Your Business in GrenadaCopy link to section

Expanship advises foreign owners on what the country's listing status means in practice, from interpreting the CFATF follow-up position for correspondent banks to confirming that no EU defensive measures apply to your structure. That guidance sits within a wider set of services for running a foreign-owned entity in the jurisdiction.

• Company incorporation and entity structuring
• Registered agent and registered office
• Tax registration and ongoing filing
• Compliance management and reporting obligations
• Accounting and bookkeeping
• Introductions to banking partners

To discuss your plans, contact Expanship Grenada.

Frequently Asked QuestionsCopy link to section