The following is a statement issued late yesterday by Finance Minister, Dr Ashni Singh, warning of the far-reaching consequences of CFATF’s ruling on Guyana in the face of the latter’s failure to pass into law the proposed Anti-Money Laundering and Countering of Financing of Terrorism (Amendment) (AMLCFT for short) Bill due to the doggedness of the combined opposition in Parliament to oppose it at every turn, come what may.THE decision by CFATF to encourage its member countries to consider implementing countermeasures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana is most unfortunate.

As a result of this warning, Guyana’s credibility in the international community will be severely damaged. International business relations with Guyana will be subjected to intense scrutiny, which inevitability will become bureaucratic and costly for investors.
Such environments will undoubtedly deter investor interests and ultimately limit Guyana’s marketability.
Countries which have been blacklisted and received similar warnings have responded differently, based on their unique economies. How Guyana’s economy responds will only be determined in time. What is known is that, regardless of Guyana’s current economic state, the consequences of the warning issued by CFATF are far-reaching:
1. Persons who receive remittances/cash via money transfer systems, may experience delays in receiving the transfer. There may also be an increased processing fee resulting from additional paperwork.
2. Proof of income and identification of the sender of such remittances will be enhanced. Persons most likely to be affected by this are undocumented aliens who reside abroad.
3. The transfer of money from local to external banks will be delayed, as international banks begin to sever ties locally.
4. This delay in bank transfers or the severing of financial ties with local banks can affect fuel prices, and, ultimately, the cost for travel and commodities.
5. Local businesses may experience delays in the shipment of goods, as additional paperwork will be required to prove that a business is legitimate and not a shell company laundering monies or financing terrorism.
6. Enhanced scrutiny will be implemented to verify the source and destination of all monies.
7. Persons who shop Online and use debit and credit cards to conduct such transactions may find their transactions being denied or delayed.
8. Insurance services (fire, life, mortgage etc), most of which depend on reinsurance from abroad, are also expected to experience delays, additional filing of paperwork, and possibly increased fees.
Despite numerous warnings, multiple engagements, calls from the private sector, manufacturing industry, banking and insurance sectors and the diplomatic community, it is most unfortunate that Guyana’s development has received such a striking blow due to non-cooperation at the parliamentary level.
The implications of Guyana not complying with the CFATF requirements will undoubtedly affect our social and economic development. As more information becomes available, Government will keep the public informed.