The Special Organised Crime Unit (SOCU) has initiated the required process to seek assistance from the Chinese Embassy on the ongoing probe into the $4.1 billion money laundering case allegedly involving 22 Chinese companies.
A source close to the investigation explained that while this process is ongoing there are a number of channels the request for assistance has to go through before a response can be given to SOCU.
Home Affairs Minister Robeson Benn when contacted last week noted that given the sensitivity of the matter under investigation, he would not speak on it. “I am not in a position to speak on it,” he said in response to this newspaper’s question. He was asked whether the government has filed a request with the Chinese Embassy. This would presumably have to go through the Ministry of Foreign Affairs. Sunday Stabroek’s effort to contact the head of SOCU, Assistant Commissioner Fazil Karimbaksh on the status of the investigation proved futile.
A spokesperson for the embassy, in response to questions from 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.”
An almost three-year investigation by SOCU came to an end three weeks ago when a Herstelling, East Bank Demerara (EBD) businessman, his son, 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.
Civil society commentator, Christopher Ram, in a letter penned on Monday, urged SOCU to act on the offer extended by the Chinese Embassy.
“SOCU needs to act on the initiative of the Stabroek News. But it needs to be clear about the assistance it seeks on the Chinese businesses, both in Guyana and in China, which were part of this international scam. It must do so cognisant of the close relationship between the Embassy and local businesses and that the Chinese state often uses businesses as its surrogates,” Ram cautioned.
His missive came on the heels of reports in this newspaper that there is nothing to suggest that SOCU, which is spearheading the investigations, had approached the Embassy over the three years of its investigation which culminated in charges against the Guyanese family, including one of conspiracy.
System working
Meanwhile, Central Bank Governor Gobind Ganga on Friday said the institution of charges is an indication that the system is working.
He noted that the regulations and guidelines given to commercial banks have allowed them to flag suspicious transactions. Once a transaction is flagged, it is forwarded to the Financial Intelligence Unit (FIU) to be investigated. After which, once there is enough evidence to indicate criminal activity, it is handed over to SOCU.
Benn also said that while there have always been probes into suspicious financial transactions, they are now able to advance these investigations.
President of the Georgetown Chamber of Commerce and Industry, Timothy Tucker said that while the prosecution of persons involved in such an acts shows the relevant agencies are working, his organisation would support SOCU taking up the Chinese Embassy’s offer for assistance.
“If you have a money laundering ring linked to Chinese companies, definitely SOCU should accept the Chinese government assistance to get to the bottom of it,” he said.
He said too that the relaxation of banking measures is encouraging persons to set up accounts paving the way for better monitoring of the financial sector and eliminating the need for persons to conduct their businesses outside of financial regulations.
Chairman of the Private Sector Commission, Paul Cheong said that the organisation is happy the Chinese Embassy has indicated its willingness to help. He said that SOCU should not hesitate to grasp the opportunity to utilise the support from the Chinese government.
He noted that while charges are being instituted it is imperative that they find the masterminds behind the scheme.
Money laundering, he went on to state, creates a series of problems for the business and financial sectors and places the country in a bad light.
The PSC chairman added that while charges are being instituted it is imperative that they find the masterminds behind the scheme and his organisation supports the move to request the help.
Apart from assistance being requested from the Chinese Embassy, Attorney General, Anil Nandlall, last week asked the Regional Security System’s (RSS) Asset Recovery Unit (ARU) to assist in high-profile money laundering cases.
This was mentioned 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 informed that the Attorney General had requested the RSS/ARU to aid the local Financial Intelligence Unit (FIU) and 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 (CANU) and was also scheduled to meet with the Director of Public Prosecutions.
No further information was given in the release on specific investigations but Georgetown has come under growing pressure to show evidence of action against money laundering.
Ram in his letter however said that the benefit of bringing in another body into the investigation after three years is questionable. “We can only hope that Mr. Nandlall’s invitation was well thought out.”
The joint money laundering charges against the Herstelling 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.
According to 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 Ramnarine’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.
