The Anti-Money Laundering and Countering the Financing of Terrorism National Coordination Committee has completed the country’s second Money Laundering/Terrorist Financing (ML/TF) National Risk Assessment (NRA) Report.
This was disclosed yesterday by the Chair of the Committee, Attorney General Anil Nandlall SC.
In a statement, he said that the NRA exercise was conducted in line with the Financial Action Task Force (FATF) Recommendation 1, which requires all countries on a continuous basis, to identify, assess, and understand their ML/TF risks and to take action and apply resources and preventative measures to lessen the identified risks, using a risk-based approach. The exercise, which is the second Money Laundering and Terrorist Financing NRA completed by Guyana within the last six years, was done using the NRA tool developed by the World Bank.
Nandlall said that the second NRA which commenced in December 2019 was undertaken by a Working Group of over 70 persons representing over 40 public and private sector agencies in Guyana. Notwithstanding numerous challenges posed by the COVID-19 pandemic the Working Group concluded the exercise in June last year. The World Bank provided guidance and support to the Working Group throughout the NRA process, Nandlall said.
The results of the exercise are set out within the NRA Report and an accompanying Risk Based Action Plan, which contains over one hundred recommendations to be implemented by various agencies. The documents have already been shared with key AML/CFT stakeholder agencies locally, to start the implementation of the Action Plan.
In conducting the exercise, Nandlall said that the Working Group assessed and identified the country’s ML/TF threats and vulnerabilities. This included the identification of weaknesses and gaps in Guyana’s ability to effectively deal with the existing vulnerabilities and threats. The Working Group examined the money laundering vulnerabilities faced by twenty sectors that are considered as possessing higher than normal risks locally.
These sectors include Banks, Insurance Companies and Brokers, Money Transfer Agencies, Cambios, Securities Businesses, Attorneys-at-law, Accountants, Notaries, Trust or Company Service Providers, House/Real Estate Agents, Used Car/Parts Dealers, Registered Charities, Dealers in Precious Metals (Gold Dealers), Dealers in Precious and Semi-Precious Stones (Diamond Dealers), Credit Unions, Cooperatives, Betting Shops, Casinos, Lotteries, and Pawnbrokers.
The threats and vulnerabilities posed by Financial Inclusion Products, the country’s risk of exposure to Proliferation Financing, the risk associated with Illegal Wildlife Trade, and Money Laundering risks associated with Guyana’s emerging Oil and Gas Sector were also evaluated by the Working Group, Nandlall said.
Some of the recommendations put forward by the working group include (i) the development of an updated formal National Money Laundering and Terrorist Financing Policy and Strategy. Nandlall said that this Policy has been drafted and it is hoped it will be finalized with some technical support and guidance from the World Bank, by November 30, 2022. Additional amendments to the AML/CFT Act and other legislation was also recommended by the working group. Nandlall said that some of these proposed amendments have already been drafted/passed. Also recommended were outreach activities to the relevant authorities. Nandlall said that these have been ongoing and will be intensified. Outreach and training programmes to the private sector to be prioritized was also proposed and this has already been initiated.
Additionally, efforts to strengthen domestic cooperation and coordination among competent authorities concerning the development and implementation of AML/CFT activities are ongoing.
Nandlall said that these are just a few of the ongoing measures by the relevant agencies in response to the recommendations by the Working Group.
“The country’s efforts to combat financial crimes including money laundering and terrorism financing will continue to be prioritized by the Government. These efforts are also being implemented to ensure Guyana’s readiness as the country prepares for its Fourth Round Mutual Evaluation by the CFATF which is scheduled for the third quarter of 2023”, he said.
The mutual evaluation process has already begun with a Pre-Assessment Training facilitated by the Caribbean Financial Action Task Force for both Public and Private Sector AML/CFT stakeholders on October 12-14, 2022.
