THE SPECIAL Organised Crimes Unit (SOCU) has seized millions of dollars in local and foreign currencies in a major anti-money laundering operation that was held along the East Coast and East Bank Demerara on Friday.Observers said the raids were significant as they came days before the United States Government opens a Drug Enforcement Administration (DEA) office here with the intention to help fight organised crime in this South American country.

Up to late Friday evening, SOCU Head, Assistant Commissioner Sydney James, was preparing to brief Public Security Minister Khemraj Ramjattan on the operation, which saw a woman and a man being arrested.

Minister Ramjattan confirmed he was aware that an operation had been conducted, and said he was awaiting a report from the head of SOCU.

A police statement said the operation was conducted in four separate areas, and a quantity of foreign and local currencies had been seized. Unconfirmed reports have suggested that approximately $15M had been seized. The cash has since been lodged, and would be used as exhibits in prosecution of the culpable parties when the matter is called before the courts.

The SOCU operation, according to information this publication received, took place in the police ‘C’ Division, East Coast Demerara, and the police ‘A’ Division, East Bank Demerara. The cash was, however, found in a house on the East Coast Demerara.

VERY ACTIVE
SOCU has been very active in the past several months, following up on allegations stemming from the state-commissioned forensic reports into a number of Government agencies. SOCU came into full operation in 2014, in keeping with Guyana’s treaty obligation to the Caribbean Financial Action Task Force (CFATF) and the Financial Action Task Force (FATF).

SOCU collaborates with the FIU to compile information that would build a case, and then acts as an intermediary between the FIU and the DPP to prosecute that case. SOCU was established under the AML/CFT Act of 2009 with the primary objective being to monitor the financial sector, but with the operationalization of SOCU, its task expanded from monitoring to investigating.

Back in 2014, SOCU collaborated with the FIU to make its first bust, seizing US$45,630 and €740, suspected to be the proceeds of criminal activity, from a Bulgarian national who was suspected of laundering the money.
The seizure was made at the Cheddi Jagan International Airport (CJIA) on Wednesday, October 29, 2014.

Based on information received, SOCU had “strong suspicion” that the Bulgarian national was involved in money-laundering activities. The individual had journeyed from Bulgaria to Spain, then from Brazil to Guyana and then to Jamaica, before returning to Guyana. It was on his return trip that he was intercepted.

CRITICISED FOR INACTION
Over the years, Guyana had been severely criticised for not going after money launderers. In a 2007 report, the US State Department had said that Guyana was neither an important regional player nor an offshore financial centre, neither did it have any free trade zones; however, the scale of money laundering was thought to be large relative to the size of the economy, with some experts estimating that the informal economy was between 40 and 60 per cent of the size of the formal economy.

The US report said money laundering had been linked to trafficking in drugs, firearms and persons, as well as to corruption and fraud.
“Drug trafficking and money laundering appear to be benefiting the Guyanese economy, particularly the construction sector,” the US report said. It added that investigating and prosecuting money laundering cases was not a priority for law enforcement, noting that the Government of Guyana (GoG) had made no arrests or prosecutions for money laundering in 2006 due to a lack of adequate legislation and resources.

Criticising Guyana’s fight then against money laundering, the US report had said that Guyana’s anti-money laundering regime was ineffective, and the implementing regulations of the money laundering prevention Act were inadequate.

However, since coming to office, the David Granger administration has passed the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation. Attorney General and Minister of Legal Affairs, Basil Williams, had said the passage of this bill signals not only Guyana’s obligation to becoming an AML/CFT-compliant regime, but also the commitment of the APNU+AFC Coalition Government to pass the bill in the 100 days of its coming to office.

“The proposed bill has added the person authorised by the Financial Intelligence Unit (FIU), and it has said also that they could seize and detain cash above the sum of $10M anywhere in Guyana,” Mr Williams had told the House during the debate.

He stressed the requirement for “cogent evidence” in the legislation before any seizure is done. “It seems to be higher-than-reasonable suspicion, because you have to have reasonable suspicion also. They cannot seize cash that is in the possession of persons in the course of business, commerce, trade, and such activities,” Mr Williams added.

Both the FIU and Special Organised Crime Unit (SOCU) would have to provide the evidence before seizures are done.