THE Guyana Government has continued to fulfill its commitment made to the thousands of persons affected by the now failed insurance giant, Colonial Life Insurance Company of Guyana (CLICO(Guyana)), with almost all the small policy holders being repaid their monies.

This is according to Minister of Finance, Dr Ashni Singh, who on Monday, in presenting the National Budget to the country, gave an update on the liquidation of the company.
Dr Singh reported that progress continues to be made in resolving the domestic chapter of the CLICO debacle and said that at the end of last month, some $4.4B was paid out to 8,634 policyholders that held up to a maximum of $30M in the insurance company.
“Virtually all small policyholders were paid in full,” said Dr Singh, as he sought to assure that the liquidator intends to continue to garner additional funds through sale of company assets and legal action, including in relation to other companies in the group outside of Guyana.
Guyana has filed court proceedings with a view to recovering several hundred million dollars impaired in regional investments as a result of the fall out.
The finance minister announced too that in an effort to strengthen the financial system further, work has also commenced on the drafting of a revised Insurance Act and a new Pensions Act.
This, he said, will specifically target the regulatory and supervisory framework governing the subsector.
The minister said further that during the course of this year, work will be advanced to review legislation governing credit unions, with the aim of bringing them also within the supervisory perimeter of the Bank of Guyana.
Following the CLICO (Guyana) meltdown, Governor of the Bank of Guyana, Lawrence David, had been appointed liquidator of the company with a view to recovering the monies impaired.
Several thousand persons had been left in limbo when news broke of the financial meltdown of the company, but former President Bharrat Jagdeo had committed the Guyana Government to ensuring that each policyholder is repaid.
Dr Singh, in presenting the budget for 2013, had also informed that “to further strengthen and safeguard the integrity of our financial system, efforts will be heightened in 2013 to enhance institutional capabilities to implement the Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Act and to establish an adequate anti-money laundering architecture in keeping with applicable standards.”
He said that to date, a total of nine supervisory authorities have already been appointed in relation to casinos, cooperatives, charities, dealers in precious and semi-precious stones and precious metals, financial leasing, money transfer agencies, trust and company service providers, and insurance businesses.
The minister said too that during the course of this year, the government will take to the Parliament amendments to the money laundering laws, “to further strengthen that Act and bring it in line with current international requirements.”
He said that in this regard, training and sensitisation to reporting requirements will be done with the supervisory authorities, and their capacity to conduct audits and monitor compliance will be strengthened.
“In addition, regulations and guidelines will be developed for several categories of reporting entities.”