– House unanimously approves bill

A bill that equips the Bank of Guyana (BoG) with the power to grant or refuse licences to money transfer agencies was yesterday passed unanimously by the National Assembly.

The Money Transfer Agencies (Licensing) Bill was passed after it had been sent to a special committee and amendments were suggested. This bill also makes provision for the registering of money transfer agents.

Minister in the Ministry of Finance Jennifer Webster piloted the bill through the House in the absence of her senior colleague Dr Ashni Singh. Webster said that the piece of legislation was “aimed at improving transparency, accountability and good governance as it relates to the operations of money transfer agencies”. She pointed out that money transfer agencies play an integral role in the mobilization of foreign currency in Guyana.

She said that after the bill was sent to the Special Select Committee for review a number of useful amendments were made.  The minister stated that during this process, a number of stakeholders contributed and she identified Grace Kennedy Remittances Services Guyana Ltd, as one such agency.

Webster explained that the bill sought to ensure that the operators of money transfer agencies are properly regulated and it makes the BoG the principal “regulatory authority on licensing conditions, suspensions, revocations and rights.” According to her, the bill substantially improves supervision and reduces the risks involved in the conducting of these transactions.

The minister pointed out that under the new piece of legislation money transfer agencies will now have to publish their transaction fees. “This bill seeks to eliminate hidden transaction costs as the government seeks to further improve transparency and reduce costs as agencies compete for customers,” she explained.

PNC/R-1G shadow Finance Minister Winston Murray indicated his party’s support for the bill. He said that the main opposition party appreciated greater oversight of financial institutions. He also expressed the desire that in the near future the New Building Society will be brought under the Financial Institutions Act.

The shadow minister, however, indicated his party’s disapproval of the section of the bill, which states that the minister needs to be consulted in the granting and the revoking of licences.

He said such involvement by the minster threatened the autonomy of the BoG. Murray said the criteria were clearly spelt out for the BoG to follow and consequently the minister did not need to become involved.

Alliance For Change MP David Patterson also voiced his party’s support for the bill and stated that the passage of this piece of legislation would bring the country on level ground with some of the other Caricom states. Patterson also raised concerns about the minister’s involvement in the licensing process and opined that this was another example of the government trying to exercise “control freakism.”

Housing Minister Irfaan Ali debunked the arguments put forward by Murray and Patterson about the minister’s involvement under the bill. He stated that this was just a way of legalising consultation that is a norm in such cases. The minister explained that ordinarily any minister would interact with the agencies and personnel under his or her oversight.

Meanwhile, Trade and Commerce Manniram Prashad described the piece of legislation as “transparent”. He said that it demonstrated government’s commitment to providing a sound macro economic environment and to protecting its citizens from being fleeced by money transfer agencies.

Webster in her closing arguments agreed with Ali and emphasised that the BoG will remain an autonomous body.

The bill was then passed unanimously by the House after being considered clause by clause.