Paying for a house above St David's, capitalising a new business in St George's or funding an investment under Grenada's citizenship programme usually means moving a sum far larger than any routine transfer. Large movements of money attract attention from every bank they pass through, and the moment the money lands is often the moment a compliance team asks where it came from.
Done well, the transfer is a non-event: documents prepared, banks warned, funds arrive and are applied to the purchase. Done badly, a deposit misses a contract deadline, money sits frozen at an intermediary bank or, worst of all, is diverted by a fraudster who hijacked an email chain. This checklist walks through the stages, from building the source-of-wealth file to confirming receipt, with the questions to settle with your attorney and banks at each point.
Start with the paper trail, not the transfer
Banks distinguish between source of funds, the immediate origin of the money being sent, and source of wealth, how you accumulated the assets in the first place. For a large transfer, the receiving bank in Grenada and possibly the intermediary banks may want both. If the money comes from selling a house, the completion statement and title transfer show source of funds; years of salary and pension statements, a business sale agreement or an inheritance grant of probate show source of wealth.
Assemble this file before you need it, ideally weeks ahead. Documents from other countries may need certification or translation, and requesting old records from banks or employers takes time. Make sure the amounts tell a coherent story: if you are sending US$600,000, evidence covering US$200,000 will prompt questions. Keep the file organised with a short covering note explaining the transaction, because a compliance officer who understands the story quickly is far more likely to clear the funds without delay.
Decide where the money should land
Attorney's client account. For property purchases, funds usually go to the client account of the Grenadian attorney handling the transaction, who releases them on completion. Confirm with your attorney how the account is held and when funds will be paid to the seller.
Your own Grenadian account. If you already hold a local account, receiving funds there gives you control but requires the bank to clear the source of funds, and you then pay the seller or contractor yourself.
Developer or CBI escrow arrangements. Investments under the Citizenship by Investment Programme follow procedures set by the CBI Unit and the approved project or fund, often involving escrow. Follow the official instructions precisely and verify them through your authorised agent.
Company account for business capital. Capital for a new business should go to the company's own account once opened, with board resolutions and share issue records showing it as share capital or a shareholder loan, a distinction your accountant should advise on.
The transfer checklist
Work through these steps in order, ticking each off before moving to the next:
- Agree with your attorney the amount, currency, recipient account and deadline, and get payment instructions in a signed letter or on letterhead, then confirm them by speaking to the attorney directly.
- Notify the receiving bank of the expected amount, sender, purpose and date, and ask what documents it needs to credit the funds without delay.
- Notify your sending bank as well; large outgoing transfers can trigger fraud checks at home too, and some banks impose daily limits that need raising in advance.
- Decide on currency. Converting to US dollars before sending is often simpler, but compare the total cost against converting at the Grenadian end.
- Send a small test payment to confirm the route, then the main transfer early in the week with a precise reference naming the property or transaction.
- Keep the SWIFT confirmation and share it with the attorney and receiving bank.
- Obtain written confirmation of receipt from the attorney or bank, and keep it with your purchase or investment records.
Timing, deadlines and licences
Property contracts in Grenada typically set a deposit on signing and the balance on completion. Non-Grenadian buyers usually need an Alien Landholding Licence before completion, which can take weeks or months to process. Your attorney will advise on whether the deposit should be held until the licence is granted and what happens to it if the licence is refused. Aligning the transfer timetable with the licence timetable avoids funds sitting idle, or worse, being released before the transaction is secure.
Build in slack. A transfer that should take three days can take two weeks if a compliance query arises at an intermediary bank or the receiving bank. Avoid sending close to Christmas, Easter or the long holiday weekends in Grenada and the United States, and remember that Carnival in August slows business in St George's. If a contract deadline is tight, ask the seller in writing for flexibility rather than rushing an incomplete transfer.
Currency and cost decisions
Because the EC dollar is pegged at 2.70 to the US dollar, buyers with US dollars face little exchange risk once funds are in the system. Those holding sterling, euros or Canadian dollars do face it, and the rate on the day of conversion can change the cost of a property noticeably. Some buyers convert in stages or use a currency provider in their home country to lock in a rate; whether that suits you is a question for your financial adviser.
Watch the total cost: the sending bank's fee, intermediary deductions, the receiving bank's charge and the spread on each conversion. On large sums, a fraction of a percentage point in the rate is worth more than all the flat fees combined. Ask both banks for their rates and charges in writing for the specific amount. Stamp duty, legal fees and licence fees in Grenada are separate costs, payable in EC dollars, which your attorney should itemise before completion so you can include them in the transfer.
Fraud, frozen funds and other things that go wrong
Email-based payment fraud is the most serious risk. Fraudsters monitor compromised email accounts of buyers, agents or law firms and send convincing messages announcing “updated” bank details. Treat any change of instructions as suspect and verify it by speaking directly to the attorney on a number you already have. No reputable Grenadian law firm will object to this check.
Frozen funds are usually a documentation problem. If the receiving bank or an intermediary holds the transfer, respond quickly with the requested evidence through official channels and ask the bank to confirm what is outstanding. Do not split future payments into smaller amounts to avoid scrutiny; it looks like structuring and makes matters worse. Carrying large amounts of cash into Grenada is not a workaround either: amounts above a legal threshold must be declared to Customs, and cash is far harder to explain to a bank than a documented wire. Confirm current declaration rules with the Customs and Excise Division before travelling.
Records to keep after the money arrives
The paperwork does not end when funds are credited. Keep a single file, paper and digital, containing the following, because you will need it again when you sell, refinance or move money out:
- The SWIFT confirmations for every transfer, with the receiving bank's credit advice showing the date and EC or US dollar amount credited.
- Receipts or statements from your attorney showing funds received into the client account and paid out on completion.
- The source-of-funds and source-of-wealth evidence supplied to the banks, in the form they accepted.
- Copies of the Alien Landholding Licence, the registered deed or share transfer, and receipts for stamp duty and other fees.
- For business capital, board resolutions, share certificates or loan agreements recording how the money entered the company.
- Any correspondence with banks about compliance holds and how they were resolved.
- Advice letters from your accountant on how the transfer is treated for tax in Grenada and in your home country, since tax authorities abroad may ask about large foreign assets.
Frequently asked questions
Should property purchase money go to the seller directly?
Generally no. In Grenada, buyers usually pay through their attorney's client account, and the attorney releases funds to the seller on completion once title, licences and documents are in order. Paying a seller directly removes an important safeguard.
How far ahead should source-of-wealth documents be prepared?
Start several weeks before the transfer, earlier if documents must come from overseas or need certification and translation. A complete, coherent file with a short explanation of the transaction is the best way to avoid funds being held for review.
Is it possible to bring cash for a property purchase?
It is a poor idea. Large cash amounts must be declared to Customs above a set threshold, carry theft risk and are much harder to deposit because banks require detailed evidence of origin. A documented wire through the banking system is the accepted route.
What happens if the Alien Landholding Licence is refused?
The outcome depends on the contract terms. Well-drafted agreements make completion conditional on the licence and set out how deposits are returned. Ask your attorney to explain these clauses before you sign and before sending any money.
Can the transfer be made in instalments?
Yes, if the contract or investment structure allows it, and many buyers pay a deposit and later a balance. What to avoid is splitting one payment into many small transfers to stay under reporting levels, which banks treat as a warning sign.
