THE Financial Action Task Force’s (FATF) draft report on Guyana’s compliance with international standards relative to its anti-money laundering and countering the financing of terrorism framework will be completed in a matter of weeks.
However, the critically important Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill remains in limbo.
In a letter dated July 9, 2014, FATF officially confirmed its decision to commence a targeted review of Guyana prior to its October 2014 plenary meeting; and the international watchdog body made it clear that the purpose of that targeted review would be to examine the most significant deficiencies in Guyana’s AML/CFT framework that pose a risk to the international financial system.
FATF has said that its review would identify steps that should be taken to address those deficiencies through the development of an action plan.
The international watchdog’s letter had said: “This review will be conducted by the International Cooperation Review Group (ICRG), Americas Regional Review Group (ARRG), co-chaired by Ms. Darlene Boileau (Canada) and Ms. Maria Fernanda Garcia-YrigoyenMaúrtua (Peru).
“In our capacity as ICRG Co-Chairs, we now request your full cooperation in assisting the ARRG to conduct this work, including by providing up-to-date information on your jurisdiction related to AML and CFT issues, as requested by the ARRG co-chairs.”
The letter indicated that Guyana would be given opportunity to review the draft targeted review and to have a face-to-face meeting with the ARRG, which is expected to happen sometime in September.
DETERMINED TO HURT
Commenting on the current state of affairs, President Donald Ramotar told the Guyana Chronicle that the combined parliamentary opposition — A Partnership for National Unity (APNU) and the Alliance For Change (AFC) — seems “determined to hurt” Guyana’s economy.
“This is not our fault. The Opposition seems determined to hurt Guyana’s financial sector by not passing this Bill and not wanting to come to a solution,” he said.
Both Opposition parties have linked conditionalities to their support for passage of the AML/CFT (Amendment) Bill. APNU proposed three amendments, which were included in the coalition’s draft amendments to the Principal AML/CFT Act.
The Head of State had, in June, indicated that these amendments would be supported by his Government if the coalition would agree to pass the AML/CFT (Amendment) Bill. This was rejected.
“What more can we do?” President Ramotar questioned, adding that APNU’s rejection of his offer to pass their amendments was essentially a rejection of their own bill.
APNU’s position is a seemingly an ‘all-or-nothing’ one, as the coalition not only demands its amendments, but maintains its call on the President to give his assent to several Bills passed in the National Assembly, including the Local Authorities (Elections) (Amendment) Bill 2013, which states that elections must be held on or before August 1, 2014.
The Head of State has already forwarded to the National Assembly
his explanation for not assenting to the bills.
On the other hand, the AFC, which is fully behind APNU’s position, is demanding the establishment of the Public Procurement Commission (PPC), which the Government has agreed to on condition that Cabinet retains its no-objection role in the process; but the latter position has been rejected by the AFC.
However, on May 29, after the announcement by CFATF, the AFC, in a statement, noted that it is now willing to budge from its position and support Cabinet’s retention of its no-objection role.
NO MOVEMENT
There still remains no movement on addressing the legislative shortcomings in Guyana’s anti-money laundering and countering the financing of terrorism framework. However, Government has been working to ensure compliance in the non-legislative areas, as advised by both the Caribbean Financial Action task Force (CFATF) and FATF.
Additionally, the Parliamentary Special Select Committee reviewing the AML/CFT (Amendment) Bill has not met since June. The last notice from the Chairperson of the Committee, Ms. Gail Teixeira, indicated that a meeting was scheduled for October 10, but it remains to be seen whether or not the combined Opposition members on the committee would attend.
Questions on the fate of the AML/CFT (Amendment) Bill are also being asked, given the submission of a no-confidence motion by the Alliance For Change (AFC) to the Clerk of the National Assembly, Mr. Sherlock Isaacs.
The Chairperson of the Parliamentary Special Select Committee, in a prior interview, told the Guyana Chronicle that APNU and AFC must explain their positions on the matter.
She said, “They also have to explain their stance over the no-confidence motion. Does that mean they will not come to any committee meeting? Does that mean the bill will be left dangling there with the FATF review coming up? They have to explain their position in light of the AFC’s no-confidence motion.
“And what will happen with the Committee? Are they going to let the Committee not function and put Guyana in worse trouble?” she asked.
The last suggested dates for meetings of the Committee were July 8, 10 and 30, all three of which were rejected on the basis on the unavailability of opposition members sitting on the committee.
At its next meeting, between October 20/24, 2014 in Paris, France, the FATF is expected to discuss the results of Guyana’s targeted review.
