…Money Transfer Agencies legislation becomes operational on October 1
A GINA Feature
The Money Transfer Agencies (Licensing) Act, which provides for the licensing of persons carrying on the business of money transfer agencies, makes provision for the registering of money transfer agents and for connected purposes, is set to come into operation on October 1.

This is as a result of the signing of the commencement order by Minister of Finance, Dr Ashni Singh, on August 21.

Greater transparency, accountability and good governance relating to the operations of money transfer agencies and money transfers agents’ operations are to be expected as the legislation lays out an effective administrative, operational and legal framework for the conduct of these businesses.

Application for licence
The legislation prescribes that the Bank of Guyana will be designated the oversight body for money transfer agencies and money transfer agents, and anyone desirous of carrying on the business of a licensed agency under the legislation is required to apply to the Bank in the prescribed form for a licence for that purpose.

In the case of a person engaged in the business of money transfer prior to October 1 (the appointed date), the person has to, within one month from that date, make an application to the Bank for a licence, and shall cease carrying on the business of money transfer within three months from the appointed date unless the licence is granted by the Bank.

The Bank, after consultation with the Minister of Finance, may grant or refuse the licence, after taking the following into consideration:

* The experience in financial business of the applicant;

* The financial resources of the applicant;

* The character and the antecedents of the applicant;

* The soundness and feasibility of the applicant’s business plan;

* The applicant’s competence and experience for operating the business of money transfer;

* The applicant’s ability to responsibly operate a money transfer agency;

* The best interests of the financial system in Guyana; and

* The public’s interest.

Once the licence is granted, the licensee shall display the licence at a conspicuous place at the licensed premises (place of business).

Renewal of licence
A licence, under this Act, expires on December 31 of the year in which it is granted, and where a person wishes to renew a certificate of registration, he shall, not later that January 15 in the new year, make an application on the prescribed form accompanied by the prescribed fee and a written endorsement of the licensee to the Bank of Guyana to renew the certificate of registration.

The Bank of Guyana may refuse to grant the renewal of a certificate of registration, after giving the applicant a reasonable opportunity of being heard, where the registered person has contravened any provision of this Act, any conditions of the certificate of registration, or where the Bank considers it to be in the public interest.

Money transfer agents
A licensee may appoint a person, by agreement in writing, as its money transfer agent with the authority to provide money transfer services on behalf of the licensed agency.

However, no person shall act as a money transfer agent unless that person has first registered with the Bank of Guyana.

Every person who wishes to be registered as a money transfer agent shall make an application in the prescribed form and submit the prescribed fee to the Bank of Guyana, supplying his name, the address of the premises from which he intends to operate, a copy of the written agreement between the licensee and himself, and such other information and documents that the Bank may require.

The Bank, in determining whether to register any money transfer agent, will take into account:

* Whether the proposed money transfer agent is a fit and proper person to provide money transfer services;

* Whether the proposed money transfer agent has entered into a suitable written agreement to provide money transfer services on behalf of the licensed agency;

* The professional reputation and experience of the proposed money transfer agent;

* The best interests of the financial system in Guyana; and

* The public interest.

Where a certificate of registration is granted, the registered person shall display the certificate of registration at a conspicuous place at the premises from which the money transfer agent will operate.

Expiration of the certificate of registration, and its renewal, for a money transfer agent follows the same principles as for a money transfer agency.

Suspension/revocation of licence or certificate of registration
The Bank may suspend or revoke a licence or certificate of registration where the licensee or money transfer agent:

* Has ceased to carry on the business of money transfer for a period of six months;

* Has been convicted of a felony or of any offence involving fraud, dishonesty or breach of trust;

* Is a discharged or an undischarged bankrupt;

* Has presented misleading information to obtain the licence or certificate of registration;

* Has contravened or failed to comply with the provisions of the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009; or

* Has contravened or failed to comply with any provision of this Act or any of the conditions subject to which the licence or certificate of registration was granted or where the Bank considers it to be in the public interest.

The Bank of Guyana shall not suspend or revoke a licence or certificate of registration unless the licensee or money transfer agent has been given a reasonable opportunity to make representation.

The Bank may suspend a licence or certificate of registration pending any investigation into a complaint of any act or omission that threatens or can affect the integrity, stability or soundness of the financial system.

Production and examination of books
Any person authorised by the Bank of Guyana may enter a licensed premises or premises from which a money transfer agent operates at all reasonable times and request the licensee, money transfer agent or any of the directors, managers, officers or employees to produce any accounts, books, records, documents, electronic data and any other relevant information:

* relating to the licensed agency or the money transfer agent’s business of money transfer that are found therein or that are in the possession or control of any director, manager, officer or employee; or

* likely to contain, in the opinion of the person, evidence of the contravention of any provision of this Act, the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 or any condition of the licence or the certificate of registration granted to the licensee or money transfer agent.

Penalties
A licensee, money transfer agent or any of their directors, managers, officers or employees who fails or refuses to comply with persons authorised by the Bank of Guyana, or obstructs that person from carrying out his function, commits an offence and is liable on summary conviction to a fine of $250,000 and to imprisonment for six months.

Any person who contravenes any provision of this Act, any regulation, notice, guideline, or any condition of a licence or certificate of registration, for which no penalty has been specified in any other provision of this Act, commits an offence and is liable on summary conviction to a fine of $500,000 and to imprisonment for one year.

Licensees under Dealers in Foreign Currency (Licensing) Act 1989
A licensee under the Dealers in Foreign Currency (Licensing) Act 1989 or any related party, holding company, subsidiary or other affiliate of such a licensee is not eligible for the grant of a licence under this new legislation.

Further, such a licensee or any related party, holding company, subsidiary or other affiliate of such a licensee who was engaged in the business of money transfer prior to October 1 (the appointed date), has to, within three months from the appointed date, cease carrying on the business of money transfer.

This legislation, part of Government’s efforts to streamline and improve the efficiency of Guyana’s financial system, will substantially improve the supervision of money transfer agencies and reduce the risks involved in these transactions, ensuring greater safety for the users of these services.

The Bank of Guyana will now have improved information flows based on a more systematic collection of data on which to be able to better access the scope and the extent of these agencies and their economic impact on Guyana’s economy.

Additionally, this information will serve to better inform key policy decisions taken by government.