Grenada’s House of Representatives has passed landmark legislation decriminalizing cannabis, triggering urgent warnings about potential repercussions for the nation’s financial system. The Drug Abuse (Prevention and Control) (Amendment) Bill, approved on January 20, 2026, legalizes possession of small cannabis quantities and permits regulated medicinal, therapeutic, scientific, and religious use for citizens aged 21 and above.
The legislative overhaul includes protective measures for youth, establishes new cannabis misuse offenses, and provides for expunging criminal records for minor cannabis-related violations through amendments to the Rehabilitation of Offenders Act.
Former Prime Minister Dr. Keith Mitchell sounded alarms during parliamentary debates, highlighting that decriminalization could jeopardize Grenada’s banking relationships with international counterparts. “The issue of derisking from international banks is something that we have to watch,” Mitchell cautioned, noting that cannabis remains federally illegal in major financial hubs like the United States.
Mitchell explained that local financial institutions risk losing vital correspondent banking relationships if they process funds linked to cannabis operations. “The present danger we face can cripple our financial sector if not handled properly,” he warned, emphasizing that such scenario could create cash-heavy environments complicating tax collection and increasing security risks.
The former leader revealed his administration had initially proposed similar amendments in 2021, but the initiative stalled due to parliament’s dissolution for 2022 elections.
Opposition Leader Emmalin Pierre expressed concerns about implementation clarity, stating: “I expected to hear more surrounding plans for implementation. If we’re not clear where we’re going and how we’re getting there, we can have problems.” She emphasized the serious consequences of potential cannabis misuse despite supporting the legislation.
Government member Peter David highlighted the social benefits of record expungement, noting that criminal records have historically hindered opportunities for youth caught with minimal cannabis quantities. All present opposition members supported the bill, which now advances to the Upper House for further debate.