According to the International Monetary Fund (IMF), the international community has made the fight against money laundering and terrorist financing a priority. It says it is especially concerned about the possible consequences money laundering, terrorist financing, and related governance issues have on the integrity and stability of the financial sector and the broader economy. These activities can undermine the integrity and stability of financial institutions and systems, discourage foreign investment, and distort international capital flows. They may have negative consequences for a country’s financial stability and macroeconomic performance, resulting in welfare losses, draining resources from more productive economic activities, and could even have destabilising spillover effects on the economies of other countries.
The IMF has asserted that in an increasingly interconnected world, the negative effects of these activities are global, and their impact on the financial integrity and stability of countries is widely recognised. Money launderers exploit both the complexity inherent in the global financial system as well as differences between national anti-money laundering laws and systems, and they are especially attracted to jurisdictions with weak or ineffective controls where they can move their funds more easily without detection. Moreover, problems in one country can quickly spread to other countries in the Region or in other parts of the world.
The IMF also said strong anti-money laundering/combating the financing of terrorism (AML) AML/CFT regimes enhance financial sector integrity and stability, which in turn facilitate countries’ integration into the global financial system. They also strengthen governance and fiscal administration. The integrity of national financial systems is essential to financial sector and macroeconomic stability, both on a national and international level.
The Government of Guyana which has recognised the seriousness of the money laundering problem has moved to amend our anti-money laundering laws to bring it in line with what is happening at the international level. However, once again our political opposition has turned a matter of grave importance and international implications into a political football.
The Alliance For Change (AFC) indicated that it will not be supporting the amendments to the legislation, should Head of State, Donald Ramotar, not assent to two pieces of opposition-led legislation that he has refused to sign.
This is yet another clear indication of the opposition using an issue of tremendous national importance as a political football and holding the government to ransom to further its own narrow political interest at the expense of the national interest.
Finance Minister Dr Ashni Singh correctly described the position adopted by the AFC “shamelessly irresponsible.”
“What the AFC is essentially saying is that, irrespective of how important this Bill is, or what the consequences of its non-approval would be, they are not prepared to support it because there are other political issues on which they wish to extract concessions from the government,” Minister Singh said.
A very important development, however, is that the Private Sector Commission has unambiguously voiced its support for the legislative amendments and at the same time expressed the serious implications of the opposition’s position on the functioning of the business community if Guyana faces international sanctions, which is likely, as the amendments may not meet the required deadline.
“Guyana presently stands at great risk of being deemed a credit risk by international financiers and becoming subject to sanctions restricting international financial transactions if we do not immediately put in place and implement the legislation required by the Organisation of Economic Cooperation and Development (OECD), to counter money laundering and the financing of terrorism…Guyana cannot afford to be blacklisted in this manner,” the PSC said.
All other business organisations and the wider society need to add their voices of condemnation of the opposition’s anti-national stance, because if the functioning of businesses is hindered at the international level, it impact negatively on our national economy and by extension the living standards of our people.
It is clear that the agenda of the opposition is to halt progress, which is an unthinkable and unbelievable position, but nevertheless the reality in Guyana.