Guyana tops list for possible further FATF sanctions

-Granger insists support for AML/CFT Bill depends on Opposition bills being assented to

LEADER of the main Opposition, David Granger on Friday made it clear that A Partnership for National Unity (APNU) will not approve the Anti-Money Laundering and Countering of the Financing of Terrorism (AML/CFT) Bill unless other bills passed by the combined Opposition are assented to.

“We will certainly not approve the money laundering bill unless the President assents to the bills that were passed,” Granger said at an APNU media briefing.
His comments came on the same day that the French-based Financial Action Task Force (FATF) issued a statement that listed Guyana as the number one country in the Americas that could be taken on by the International Cooperation Review Group’s (ICRG) for review and possibly further sanctions.

“The only reason to block this Bill will be to protect money launderers and terrorists.”-AG

The FATF’s statement said: “The methodology to prioritise jurisdictions in the pool for ICRG review was adopted by the FATF in October 2010.
“It builds on four financial indicators – total value of Domestic Financial Assets (in USD billion); total Domestic Financial Assets expressed in percentage of GDP; Cross Border Interbank Assets (in USD billion) and

Attorney General and Minister of Legal Affairs
Attorney General and Minister of Legal Affairs

Remittances Inflows and Outflows (in USD million) – to rank the jurisdictions in the pool from 1 to 10, where the higher final ranking means larger and more integrated financial sector.”
According to the statement Guyana scored 8.125 out of 10.

Opposition Leader David Granger
Opposition Leader David Granger

Guyana was ahead of Haiti, Aruba, Belize, Suriname, Turks and Caicos Islands, St. Kitts and Nevis, St. Lucia, Grenada and Dominica with scores between seven and three.
Guyana is also at the top of the list of the jurisdictions in the ICRG-pool in the Africa/ Middle East and Asia/ Pacific regions.

HIGH POSSIBILITY
Attorney General and Minister of Legal Affairs, Anil Nandlall told the Guyana Chronicle that FATF’s most recent statement has serious implications for Guyana.
He also flayed the Opposition Leader for his position on the matter.
Nandlall stressed the fact that FATF’s statement is reflective of the high possibility that Guyana could enter the ICRG process.
“We want to avoid this at all costs because the ramifications for Guyana will be significant,” he said.
He pointed out that the Guyanese people will suffer; people who support the APNU and private sector Opposition supporters.
“Why would you want to expose the Guyanese people to these perils,” the AG questioned.
There have been increasing reports of the challenges facing average Guyanese men and women, as well as the business sector because of the non-passage of the AML/CFT Bill.
Banks, insurance companies and business are already lamenting the escalating price of transactions with international institutions, while the ordinary man is complaining of the resulting reduction in their disposable income as a result of dwindling remittances.
The AG urged reconsideration of the matter by the main Opposition.
“The only reason to block this Bill will be to protect money launderers and terrorists,” Nandlall said.
There are currently three methods by which a jurisdiction could enter the ICRG process: nomination; referral based on mutual evaluation results; and referral based on non-participation in an FSRB (FATF-style Regional Bodies, which includes CFATF) and non-publication of mutual evaluation reports.
The FATF is expected to hold a review in February review, which Guyana could be included in, following CFATF’s.

OF NOTE
Nandlall added that of note is the detailed mention by FAFT of the fact that Caribbean Financial Action Task Force (CFATF) has already blacklisted Guyana.
FATF’s advisory on the possibility of the ICRG review made clear that in November 2013 CFATF designated Guyana as a country with strategic anti-money laundering and countering the financing terrorism deficiencies that has not made sufficient progress in addressing the deficiencies and have not complied with its Action Plan developed with CFATF to address these deficiencies.
FATF’s statement said: “This public statement contains relevant information that countries and the private sector, as part of their implementation of the risk-based approach, should be aware…the November 2013 CFATF public statement indicated that this jurisdiction had made significant progress in addressing its strategic AML/CFT deficiencies.”
CFAT’s November statement said, “The CFATF calls on its members to consider implementing counter-measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from each jurisdiction.
“In November 2011, the CFATF brought to the attention of its Members certain jurisdictions, including Guyana, with significant strategic deficiencies in their AML/CFT regime.
“With a view to encouraging expeditious rectification of the identified strategic deficiencies Guyana and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Guyana’s national architecture to combat money laundering and the financing of terrorism.
“As a result of not meeting the agreed timelines in its Action Plan, the CFATF issued a public statement in May 2013 recommending that Guyana take steps to ensure that it addressed its AML/CFT deficiencies.
“Guyana has made efforts to address its deficiencies, however, it has not taken sufficient steps towards improving its AML/CFT compliance regime by failing to approve and implement required legislative reforms.
“Guyana must therefore pass the relevant legislation and implement all the outstanding issues within its Action Plan including: 1) fully criminalising money laundering and terrorist financing offences; 2) addressing all the requirements on beneficial ownership; 3) strengthening the requirements for suspicious transaction reporting, international co-operation, and the freezing and confiscation of terrorist assets; and 4) fully implementing the UN conventions.
“Members are therefore called upon to consider implementing counter-measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana.”
In addition to FATF’s February deadline, CFATF itself is expected to review Guyana’s position in May 2014 at its next meeting.

(By Vanessa Narine)

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