Attorney-General Basil Williams is confident that Guyana now has the legal framework in place for freezing the assets of money launderers and terrorists and sources say at least one prominent citizen is on the radar of authorities.
After a bitter three year battle with the previous PPP/C government, the present APNU+AFC administration in June last year passed key amendments to the anti-money laundering law. Last month, the government moved to institute even more changes with the passage of the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill, which provides for, among other things, the freezing of assets, and the Anti-Terrorism and Terrorist Related Activities Bill.
Williams told Stabroek News last Friday that the government had contemplated a Financial Intelligence Unit (FIU) that would post up on its website persons identified as subject to financial sanctions for believed involvement in terrorist activity. He said that when that is done, the responsible local agencies have a duty to indicate to the FIU that they are holding property for these persons. The FIU, in turn, would indicate that it needs to freeze the property. He said that the Director of Public Prosecutions (DPP) would be responsible for getting a freezing order, which would be served on those persons.
When asked specifically whether eyes have been laid on anyone with regards to freezing their assets, Williams told Stabroek News that such an action falls under the FIU and the Special Organised Crime Unit (SOCU). FIU, he explained, is the analytical body and when it completes its analysis it is handed to SOCU, which is the investigative body.
There have been reports that there are plans to freeze the assets of an individual who has been on the radar since government took office in May last year. There have been many questions raised about how the individual might have acquired significant assets.
However, a source close to the individual said that he is not at all worried as what currently exists are rumours and speculation. While the individual, who owns land and at least one business and who had been embroiled in alleged wrongdoing which involved state assets, is not in panic mode, the source said that systems are in place to deal with any issue relating to the freezing of assets that may arise.
Observers have also pointed out that there at least two other persons whose acquisition of substantial wealth also raises questions. One, who served a sentence for drug trafficking in the United States, was deported back to Guyana last year but there has been no word from the relevant authorities about whether the acquisition of the person’s assets will be investigated. Both men have been identified as having ties to drug trafficking, through which it is believed that they accumulated wealth.
Observers though, have been quick to point out that many “questionable” businessmen have managed to conceal wrongdoing and have ensured that there is no paper trail leading to them.
They would have listed their assets in the names of close family and friends, making it almost impossible to trace anything back to them.
Clause 6 of the recently passed anti-laundering bill was intended to amend section 71(1) of the Principal Act to enable the Director of Public Prosecutions to make an ex parte application to the High Court for a freezing order.
Clause 4 of the bill amends section 68A (6) of the Principal Act to reduce the period from not later than seven days to not later than five days for the Director of Public Prosecutions to apply for the order.
The amendment also provides that an application for a freezing order may be made ex parte to a Judge in Chambers. The amendment also seeks to insert into section 68A, a new subsection to provide that when a Judge is considering granting the freezing order, the standard of proof required shall be on the balance of probabilities. Clause 4 also seeks to insert a new subsection that requires the Director of Public Prosecutions to immediately serve on the reporting entity a copy of the freezing order.
Williams gave the reminder that at the last Financial Action Task Force (FATF) meeting, Guyana was found to be fully compliant with five of eight recommendations in its action plan to remedy deficiencies in its anti-laundering legislation. It was found to be partially compliant with the remaining three but Williams said it is government’s hope that it has now “remedied them.”
He will attend a meeting in Panama this week to deal with questions and explain the provisions that would have been implemented to ensure that the country is compliant with the FATF regime. “So we are going to go up now to have this face to face meeting where you will have interaction on these three partially met recommendations to see if we have completely met them now,” he said.
