…AG tells Lethem residents to look out for smugglers
…Gold Board GM says no place for money launderers in gold trading

ATTORNEY-General and Minister of Legal Affairs Basil Williams, SC, told residents of Lethem on Friday that the issue of porous borders and their susceptibility to illicit activities is being addressed by the administration, but urged greater support from the community as government continues its fight against organised crime.

He was at the time addressing the opening of an Anti-Money Laundering and Combating the Financing of Terrorism National Coordinating Committee outreach and sensitisation seminar, which was held in the South Rupununi community of Lethem in Region Nine (Upper Takutu-Upper Essequibo).

The event was meant to update the relevant national agencies on where Guyana is, in relation to its obligations under regional and international money laundering regimes. The forum also was an opportunity to raise awareness about the risk that Guyana’s porous borders pose with regard to money laundering and terrorism financing. At the forum, presentations came from agencies such as the Bank of Guyana, the Financial Intelligence Unit (FIU), the Special Organised Crime Unit (SOCU), the Guyana Revenue Authority (GRA), and the Office of the Director of Public Prosecutions (DPP).

Williams spoke of the many occurrences of aircraft found abandoned, which are suspected to have been involved in illegal activities, and urged residents to continue to be vigilant. He said that given that Guyana has had discoveries of some of the largest deposits of oil anywhere in the world, it is critical that the country is not tainted by becoming blacklisted or suffering some other sanction. “It is clear that we have to gear up ourselves and sensitise our citizens to ensure that we are not used by people [who launder money and who finance terrorists],” he said.

BE COMPLIANT
Meanwhile, General Manager of the Guyana Gold Board (GGB), Ms Eondrene Thompson said that persons who are interested in becoming involved in the trading of gold had better prepare to be compliant with the laws, as they will not find a haven for illicit activities within the agency.

The GGB is designated a supervisory authority under the Anti-Money Laundering and Combating the Financing of Terrorism Act. Under the legislation, the Board works with other government agencies to ferret out money laundering activities. As such, the GGB was among the agencies invited to make presentations at the event.

In making her presentation, Ms Thompson said that the gold-mining and gold-trading sectors are attractive to various stakeholders, including criminals. She noted that over the last few months, many persons have approached the Board stating their interest of becoming gold dealers. She said that many of them soon become dissuaded when they see the rigorous vetting process that they would have to satisfy if they want to acquire a licence from the Guyana Gold Board, and are usually never heard from again. “It means that in all of this, the Guyana Gold Board has to keep our ears to the wall; we have to carry out the due diligence and enhanced due diligence. Sometimes we hear that there is over-regulation, but Guyana cannot afford not to ship gold, because it is one of the country’s largest revenue earners,” Thompson stressed.

WHITHER THE GOLD

Thompson believes that with record- breaking gold declarations for the year 2016 of over 712,000 ounces, the country has the capacity to match this by the end of 2018. Acknowledging that the final 2017 figure made a dip, coming in at just over 653,000 ounces, she questioned whether gold smuggling might have been a factor. “The question we will be asking ourselves is: ‘Where is the gold going,’” she said. She also pointed out that of the vast number of jewellers, only a handful of them come to the Guyana Gold Board to purchase their gold.

Ms Thompson pointed out that records show mining activity in certain areas but there is a mismatch with the expected level of production, giving rise to the question as to where the gold is going. “Money laundering in the gold sector can be identified where there is high-volume low-value gold transactions, co-mingling of bank accounts, records and stock book, little start-up capital and minimal equipment but big gold returns, international payments of gold or scrap metal facades, no AML/CFT policy and requirements and a willingness of companies, banks, credit agencies etc. to process customers who subsidize the business.

PRE-EMPTIVE MEASURES
Ms Thompson said that some of the measures that the Gold Board takes to combat money laundering include compliance examination of all dealers, internal AML/CFT training for all staff members, AML/CFT training for all licenced dealers, vetting of bi-weekly declarations and receipts of all agents, certification of agents by the Guyana National Bureau of Standards and the corroboration of customers’ information with the records of other entities such as the Guyana Geology and Mines Commission (GGMC), the Guyana Revenue Authority (GRA) and others. The role of the Guyana Gold Board is two-fold: to engage in the trading of Guyana’s gold and ensure that there is adequate supply; and to regulate the sector and ensure compliance with the Guyana Gold Board Act and the AML/CFT Act.