China’s Embassy in Guyana on Thursday said that it does not view the recent $4.1b money laundering investigation involving some 22 Chinese companies as complete and has forewarned that it considers presently any presumption of guilt as unfair.
The Embassy, however, does clarify that it stands ready to assist local law enforcement officials.
A spokesperson for the embassy, in response to questions asked by the Sunday Stabroek said, “Should the Chinese Embassy in Guyana be requested to provide some assistance, we would be quite willing to do it within our capacity.” The spokesperson added, “It is our knowledge that police investigation to the case …has not been completed in Guyana. Presumption of guilt at this time is not appropriate or fair.”
Thus far, the government has been silent on any plan to pursue the Chinese angle.
An almost three-year investigation by the Special Organised Crime Unit (SOCU) came to an end last Wednesday when a Herstelling, East Bank Demerara (EBD) businessman and his reputed wife were arrested and charged for allegedly laundering billions to 22 companies in China. Charged were Kenneth Ramnarine, a taxi driver, his reputed wife, Yevette Saroop, and son Damian Ramnarine, a salesman, all of Lot 274 Somerset Court, Herstelling, EBD. SOCU laid a total of 268 charges of money laundering and conspiracy to launder over $4.1 billion against the family.
Their son, Damien, did not appear in court with his parents, but was later charged on Wednesday evening after he surrendered with his lawyer to SOCU, he also faces joint money laundering charges. The family’s business was flagged by the Financial Intelligence Unit (FIU) after routine disclosures were made by local banks. The Guyana Revenue Authority (GRA) is additionally investigating for possible tax evasion, sources say. Kenneth and Damian Ramnarine were charged jointly, while Yvette Saroop, who was alleged to have conspired with them, was charged separately.
Kenneth Ramnarine appeared at the Georgetown Magistrate’s Court last week Wednesday before Chief Magistrate Ann McLennan where he was not required to plead to 41 indictable money laundering charges. His son was not present in the court at the time. The family is being represented by attorney, Bernard Da Silva.
The joint Money Laundering charges against the trio were laid under Section 3 (1) (a) of the Anti-Money Laundering and Countering the Financing of Terrorism Act Chapter 10:11. A summary of all the charges read that they knowingly, or having reasonable grounds to believe that the cash in question, whether in whole or in part, directly or indirectly, represented proceeds of crime, and that they converted or transferred the cash in question knowing, or having reasons to believe that the said cash is the proceeds of crime, did so with the aim of concealing or disguising its illicit origin. Kenneth Ramnarine was remanded until March 06.
The 134 money laundering charges against Saroop were laid under 3 (1) (d) of the aforementioned act. She appeared on Wednesday at the Diamond/Grove Magistrate’s Court before Magistrate Sunil Scarce, where she was not required to plead to the indictable charges. A summary of all the charges read that she conspired with Kenneth and Damian Ramnarine to convert or transfer the cash in question, knowing or having reasonable grounds to believe that the cash in whole, or in part, directly or indirectly, represents proceeds of crime with the aim of concealing or disguising its illicit origin. Saroop was remanded to prison until March 6 and she will reappear in court on March 17 for disclosure.
At the same court, Kenneth appeared before the same Magistrate to answer another 93 counts of money laundering charges for transporting large sums of monies through commercial banking institutions in Diamond, East Bank Demerara. The charges were laid under the same section, and he was not required to plead. He was remanded and was slated to answer more charges of a similar nature at the Diamond Magistrate’s Court on Thursday.
The son, Damien, was on Thursday remanded to prison after facing 134 joint fraud charges committed during the years 2018 to 2021. According to the Head of SOCU, Assistant Commissioner Fazil Karimbaksh, reports reaching his unit indicated that the trio conducted multiple suspicious transactions at several financial institutions in Guyana, raising concerns that they may be involved in money laundering activities. He disclosed that his suspicions were based primarily on the large number of unsubstantiated cash deposits made via Kenneth’s business accounts of Ken’s Trading Enterprise.
Furthermore, the Sources of Funds declarations were submitted to several commercial banks which showed that most of the deposits are attributed to sales proceeds from biodegradable food boxes sold to local businesses, particularly Chinese restaurants. Karimbaksh said that a substantial number of wire transfers, amounting to over $3.7 billion were sent to twenty-two companies in China under the pretext of importing raw materials to produce bio-degradable products, while other sums were disguised locally, overall, totaling over $4.1 billion. He related that his investigators were unable to find any legitimate source of these funds, which the accused wire transferred out of Guyana.
The accused’s actions, he noted, suggested that they may be operating as nominees for some Chinese businesses and also facilitating tax evasion through Ken’s Trading Enterprise. And while proving the laundering case here would not be difficult, this newspaper understands that investigators could seek government’s intervention through diplomatic channels for securing documents and accounts information from the companies in China to add to their investigation. Sources told Stabroek News that “although the information is not needed for the case itself, diplomatic channels would have to be used to get documents from China because this country has no jurisdiction over the businesses there.”
And as it underscored that only legitimate businesses would be protected, the Chinese Embassy on Thursday said that it was aware of the case and was keeping abreast with its progress. Beijing, the embassy stated, is strict in its fight against money launderers and overall does not tolerate illegal activities.
“The Chinese Embassy in Guyana noted the case…from some reports in the local newspapers. I’d like to emphasize that China is a country ruled by law. Only legal and legitimate economic activities will be protected. China cracks down on money laundering and other illegal activities in accordance with the law. China has enforced anti-money laundering laws, signed and approved all international conventions related to anti-money laundering and counter-terrorism financing, actively participated in the activities of international and regional anti-money laundering organizations,” the Embassy contended.
“China is also the first developing country within the financial action task force (FATF) which reached internationally accepted anti-money laundering and counter-terrorism financing standards, and has signed MOUs on anti-money laundering information exchange with 40 countries and regions,” it added.
Last year, following allegations of bribe taking against Vice President Bharrat Jagdeo, Beijing had come out in defence of Chinese companies operating here, saying that they were following local laws and best practices.
“Chinese companies operating in Guyana are following the local laws, international practices, and market rules, participating in big projects through open and fair competitions, which is beyond reproach”, the embassy had stated. On Thursday it said that it “oppose any discrimination and bias against Chinese businesses”.
On Thursday, Attorney General Anil Nandlall SC asked the Regional Security System’s (RSS) Asset Recovery Unit (ARU) to assist in high-profile money laundering cases.
This was in a release from the Attorney General’s Chambers on the outcome of a visit here by the Barbados-based RSS which Guyana joined in September last year.
The release said that the Attorney General requested the RSS ARU to aid the local Financial Intelligence Unit (FIU) and the Special Organised Crime Unit (SOCU) in ”certain high-profile ongoing investigations of money laundering”. While in Guyana the RSS met with the FIU, SOCU and the Customs Anti-Narcotic Unit and was also scheduled to meet with the Director of Public Prosecutions.
No further information was availed in the release on specific investigations but Georgetown has come under growing pressure to show evidence of action against money laundering.
