The special parliamentary committee reviewing the proposed anti-money laundering law has begun its deliberations on the substantive provisions of the long-awaited legislation.
The special select committee was created by the National Assembly June last year to examine the Anti-Money Laundering and Countering the Finance of Terrorism Bill 2007.
After a year-long hiatus, the committee started meeting in June.
“[The work] is not moving as fast as we would have wanted,” AFC MP Raphael Trotman admitted recently. “We are now looking at ways to speed it up,” he, however, added.
Based on public notices, Trotman said, the committee received several oral and written submissions from various stakeholders; in addition to public institutions like the Bank of Guyana and the Guyana Association of Securities Companies and Intermediaries Inc and private citizens like accountant Christopher Ram. He explained that the committee is now considering the legislation clause by clause and three weeks ago it began meeting on a weekly basis.
The Bill provides for oversight of export industries, the insurance industry, real estate and alternative remittance systems. It also caters for the establishment of the Financial Intelligence Unit as an independent body answerable only to the president and strengthens it by giving it broader roles and responsibilities.
The new law is thought to be a significant improvement over previous anti-money laundering legislation, covering the freezing and forfeiture of assets owned or controlled by persons suspected of being involved in money laundering activities. President Bharrat Jagdeo had given a commitment for the passage of the law by July, saying that it was government’s intention to move forward with the legislation in a way that would facilitate Guyana becoming an offshore financial centre (OFC).
Trotman, however, said he has heard no word about this plan and he noted that Finance Minister Dr Ashni Singh, who chairs the committee, has not raised it in connection with the Bill. According to Trotman, regulations to facilitate Guyana’s development as an OFC might require special legislation. At the same time, he noted that it would require “a lot more than legislation,” citing the need for a stable political environment. “And that is not being done,” he said, adding “I have not heard anything about it since.”
The 2008 International Narcotics Control Strategy Report said the government needs to pass effective legislation to deal with money laundering, including provisions allowing forfeiture of seized assets. The report noted that the government made no arrests or prosecutions for money laundering in 2007. It added that money laundering is perceived to be a serious problem here and has been linked to trafficking in drugs, guns and persons as well as to fraud and corruption.
