– Guyana could face another review in February 2014

PRIME Minister Samuel Hinds, in the National Assembly yesterday, informed the House that Guyana has obtained an unfavourbale designation by the Caribbean Financial Action Task Force (CFATF).

However, he noted that the “worse” may still be on the horizon, as Guyana may be selected for another review in February 2014 by the Financial Action Task Force (FATF), a body independent of CFATF.
The Prime Minister pointed out that the February review will follow CFATF’s designation of 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.
CFATF is an organisation of 29 jurisdictions of the Caribbean Basin Region, which have agreed to implement the international standards for Anti-money Laundering and Combating the Financing of Terrorism (AML/CFT) and FATF recommendations.

Hinds reported that CFAT, at its 38th plenary meeting this week, called for its members to “consider implementing counter measures to their financial systems from the ongoing money laundering and terrorist financing risks” emanating from Guyana.
The Prime Minister underscored the fact that 98 per cent of the deficiencies identified are legislative in nature, deficiencies that were addressed in the AML/CFT Amendment Bill that was defeated in the National Assembly on November 7, by the joint Opposition.
CFATF in a statement released yesterday said: “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.”
Attorney General and Minister of Legal Affairs, Anil Nandlall, who led the Guyana’s team to the CFATF meeting, in a statement yesterday pointed out that it was resolved that a formal letter be sent to Guyana advising that should the identified deficiencies not be satisfactorily rectified, namely, the approval and implementation of the required legislative reforms, by the next Plenary Meeting, that is, by May 2014, then Guyana will be referred by CFATF to FATF International Corporation Review Group (ICRG).

(By Vanessa Narine)