…AG satisfied with compliance arrangements at key financial agencies

By Svetlana Marshall
A FIVE-member team from the International Co-operation Review Group (ICRG) will be here in mid-September to evaluate the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.

From September 14-15, the international financial watchdog will verify whether Guyana has introduced the reforms recommended in the Action Plan agreed between the Financial Action Task Force (FATF) and the Guyana Government. Additionally, the visit will confirm whether there is a political commitment to sustain the reforms.

Speaking to reporters in his chambers on Tuesday, Attorney General and Legal Affairs Minister, Basil Williams said all systems are in place to facilitate the onsite visit. As head of the AML/CFT Compliance Team, the Attorney General noted that meetings were held with key agencies, including the Financial Intelligence Unit (FIU), the Special Organised Crime Unit (SOCU) and the Bank of Guyana to sensitize them on their AML/CFT obligations.

According to him, during these meetings he was very impressed with the compliance arrangements instituted by the various agencies and organisations. “I found that most of them had compliance officers, and most of them were very aware of the requirements of FATF,” Minister Williams said. “I think they are all well positioned,” he further posited.

In addition to meeting with the Bank of Guyana, the FIU, and SOCU, the ICRG Team, which is an arm of FATF, will be meeting with the Attorney General and his Compliance Team, the Minister of Finance, Winston Jordan, the Director of Public Prosecution (DPP), and Supervisory Authorities, including the Securities Exchange Council, and Reporting Entities such as Republic Bank, Guyana Bank for Trade and Investment (GBTI), Western Union Money Transfer and Confidential Cambio.

The result of the on-site visit will be on the agenda at the next FATF Plenary meeting schedule to take place in Paris in October. Minister Williams, however, in underscoring the importance of having Guyana satisfy the onsite visit, stated clearly that once the requirements are met, a motion will be moved during the October Plenary to have Guyana exit the FATF Review List. The country, he said, must first exit FATF’s review list before exiting the CFATF list.

As the country awaits the onsite visit, the Attorney General said the current Administration has done everything possible to have the country be removed from both lists.

“We have done everything. We have satisfied the recommendations of the agreed action plan and also on the follow-up report of CFATF.”

Meanwhile, at a separate press conference, President of the Georgetown Chamber of Commerce and Industry (GCCI), Vishnu Doerga said the members of the chamber and by extension the Private Sector are anxiously awaiting the outcome of onsite visit.

He the business community has been feeling the impact of Guyana’s initial noncompliance to FATF and CFATF’s requirements. “The biggest impact since all of this started, was that the cost of business went up because of transaction scrutiny, things went up,” he posited. Doerga noted too that the time taken to transact business has also increased much to the disadvantage of businesses here.

Nevertheless, he said GCCI remains optimistic, given the upcoming visit. “We do understand that this is necessary but it is unfortunate that a small proportion of people…do get involved in money laundering, in financing of terrorism and it is under fortunate that…all of us are affected by this,” he said.

Currently, Guyana has an Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act in place, along with other related legislation governing supervisory bodies, financial institutions, law enforcement, and foreign affairs.

The National Assembly, in May, passed the AML/CFT (Amendment) Bill 2016. In 2015, it had also passed the Anti-Terrorism and Terrorist Related Activities Bill; the AML/CFT (Amendment) Bill Nos. 1 and 2; and the AML/CFT Regulations, all in keeping with recommendations made by FATF and CFATF.

The decision to take Guyana off the review lists was made during an FATF Plenary and Working Group meeting held in Busan, Korea, from June 18-24.

The meeting, which was attended by the Attorney-General and Acting Director of the Financial Intelligence Unit (FIU), Alicia Williams, saw the Plenary adopting FATF/ICRG Co-chair’s Report, which stated that Guyana had substantially completed its Action Plan at the Technical level.

“In line with the procedures for removing jurisdictions from ICRG review, the ICRG recommends that an on-site visit take place to the country prior to the October 2016 meetings, in order to verify that the implementation of its AML/CFT reforms has begun and is being sustained, and there is political commitment to sustain implementation,” sections of the report read.