by Linda Straker
- Lower House of Parliament approved amendment to Drug Abuse (Prevention and Control) (Amendment) Bill
- Derisking of commercial banks by corresponding banks can be negative effect of decriminalising cannabis
- Local banks risk losing correspondent banking relationships if they handle funds related to cannabis industry
Former Prime Minister Dr Keith Mitchell has warned the government that Grenada needs to have proper rules and regulations in place to ensure that financial institutions, especially local commercial banks, do not lose their corresponding bank status because of Grenada’s decision to decriminalise cannabis/marijuana.
On Tuesday, 20 January 2026, the Lower House of Parliament approved an amendment to the Drug Abuse (Prevention and Control) (Amendment) Bill. That amendment decriminalises the possession and use of cannabis in small quantities; permit the use, handling and cultivation of cannabis for medicinal, therapeutic, scientific and religious purposes under regulated conditions for citizens from the age of 21.
It also seeks to “establish protective and rehabilitative measures for children and young persons; to provide for the regulation of such activities; to create new offences and controls relating to the misuse of cannabis; and to provide for consequential amendments to the Rehabilitation of Offenders Act for the expungement of criminal records and discontinuance of pending proceedings in respect of minor cannabis-related offences.”
In his contribution to the debate on the bill, Dr Mitchell told the House that the issue of derisking of commercial banks by corresponding banks can be one of the negative effects of decriminalising cannabis. His former administration was the first to table an amendment to the same legislation in 2021, but it did not go forward because of the dissolution of parliament for the 2022 General Elections. “The issue of derisking from international banks is something that we have to watch, like many other Small Island Developing States, Grenada faces significant challenges from derisking by international financial institutions because cannabis remains in the general sense federally illegally from a national perspective in major financial hubs like the United States,” he said. He explained that local banks risk losing correspondent banking relationships if they handle funds related to the cannabis industry. “So, in other words, work still needs to be done. It is clear that the present danger we face can cripple our financial sector if it is not handled properly. Such a situation inevitably creates a high cash environment, complicating tax collection efforts and posing financial risk to business and its security.”
“We didn’t hear much about that today, but I am raising this because I think the matter is important,” he told the Parliament before pointing out that Grenada may also be in violation of certain international conventions, which are aimed at cracking down on the possession and trafficking of certain drugs.
Opposition Leader Emmalin Pierre had her concerns about the functioning of the bill when it receives all the relevant approvals. “I expected to hear a lot more surrounding the plans for the implementation of the bill, some very vague references were made, if we are not clear where we are going and how we are getting there, we can have problems along the way.” “We cannot trivialise this issue because the presentations before clearly highlighted the serious consequences, the serious possibilities that can arise from the abuse and misuse of marijuana,” she added.
Not all Members of Parliament on the government side contributed to the debate, while all opposition members who were present supported the legislation, which is set to be debated by members of the Upper House in an upcoming sitting.
Peter David believed that the expunging of cannabis related records for those who were caught with one portion of cannabis cigarettes would work in the best interest of many young people as they grow older and become productive citizens. “The criminal record has been a hindrance to many, especially young men. They lost opportunities after getting fined or convicted of having one spiff in their possession.”
