Finding that Guyana has “failed to make sufficient progress” in addressing deficiencies in its anti-money laundering legislation, the Caribbean Financial Action Task Force (CFATF) has given the country until November to take the necessary steps or face a call for measures by other members of the group.
The decision was the result of deliberations in Managua, Nicaragua, where CFATF assessed the progress made by Guyana and other member states, including Belize and Dominica, in implementing recommendations which were made since November 2011.
Recognising that several strategic deficiencies existed in the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) scheme, the CFATF had worked with Guyana to develop an action plan meant to address the deficiencies identified.
Once ratified and implemented, the plan was expected to address the strategic deficiencies “that existed in its national architecture” to combat money laundering and the financing of terrorism.
In reporting the findings of Guyana’s review, CFATF in a statement said Guyana has taken steps towards improving its AML/CFT compliance regime, including strengthening its record-keeping requirements and functionality of its Financial Intelligence Unit.
However, it noted that “Guyana has failed to make sufficient progress in addressing its significant strategic AML/CFT deficiencies, including certain legislative reforms.”
It noted that the government has introduced an amendment bill in the National Assembly to address the deficiencies which were alluded to in 2011 and urged that the amendments be implemented urgently.
“If Guyana does not take specific steps by November 2013, then the CFATF will identify Guyana as not taking sufficient steps to address its AML/CFT deficiencies and will take the additional steps of calling upon its members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing emanating from Guyana,” the group warned, while adding that at that time CFATF would also consider referring Guy-ana to the Financial Action Task Force’s International Cooperation Review Group (FATF ICRG).
Government belatedly tabled amendments to AML/ CFT Act in April and tried in vain to force the opposition to fast-track its passage by this week’s meeting in Nicaragua. The amendment bill has since been sent to a Special Select Committee, where it is currently being examined by the parliamentary parties.
The passing of the bill by the November deadline is now hinged on the three parties’ agreement on relevant amendments in the Special Select Committee. Apart from the amendments suggested by government, APNU has also stated its intention to propose amendments of its own. APNU leader David Granger yesterday re-affirmed his party’s intention to “give the people a Bill that they can live with.” The coalition’s plans, however, are yet to be made public.
Meanwhile, although the AFC has opted to remain active in the Special Select Committee, it has maintained its intention to withhold support for the amendment until the government constitutes the Public Procurement Commission, appoints an Ombudsman and fully constitutes the Financial Intelli-gence Unit (FIU).
In a release yesterday, the party said it will not de-link reform of the AML-CFT from enforcement mechanisms for its sister legislation—the Public Procurement Act and the Integrity Act.
The party said that the FIU, since being established, has been functioning deficiently, and called on Paul Geer, its Head, to “tell this nation whether any persons, including politically-exposed persons, have been investigated for handling proceeds of crime—be it bribe money, kick-backs for contracts etc.”
Like APNU, the AFC stated that apart from the process of amending the bill, it was also focused on strengthening enforcement so as to protect legitimate businessmen and safeguard the state’s revenue stream.
In the release, the AFC noted instances in Trinidad where “money launderers and drug traffickers were renting the bank accounts from persons of ‘straw’, who would sell their banking identity documents. The ‘tenants’ reportedly cleaned large sums of money which, in turn, were wired to safe havens overseas.”
The AFC said that though it was committed to ensuring that Guyana meets its international obligations, it was equally important to ensure that the constitutional bodies which are mandated by the constitution are established with full powers. The party has also called on the President to review his veto to two opposition Bills, which were passed earlier this year.
The special select committee, which is made up of APNU MPs Debra Backer, Joseph Harmon, Basil Williams and Carl Greenidge, PPP/C MPs Gail Teixeira, Clement Rohee, Anil Nandlall and Ashni Singh, and AFC MP Khemraj Ramjattan, is slated to meet next on June 12th to continue its review of the amendments.
