Non-passage of AML/CFT Bill already affecting investments

CHIEF Executive Officer (CEO) of the Guyana Office for Investment (Go-Invest), Mr. Keith Burrowes, has disclosed that investors have already started to query and express concern, both locally and internationally, about the non-passage of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Bill.He said they are questioning, as well, the decision taken by the Caribbean Financial Action Task Force (CFATF), urging Caribbean nations to implement whatever mechanisms to protect their financial systems from money laundering and terrorism financing risks emanating from Guyana.

Burrowes, in an invited comment to the Guyana Chronicle, noted that the major impact on investment is through the self-fulfilling prophecy of perception, where investors perceive that the risks arising from Guyana’s ‘name and shame’ by the CFATF and acting on such perceptions, would reduce their investments both locally and internationally, thus reducing economic growth of the country.
The Go-Invest CEO said that consultations are being sought, by its management, with the Minister of Legal Affairs, Mr. Anil Nandlall, and the Minister of Finance, Dr. Ashni Singh, to grant foreign investors some level of comfort by explaining that the matter is being examined and resolved from every possible angle.
Burrowes lamented that the advisory against Guyana will hamper development of the country and there is no doubt that this ‘name and shame’ advice will effectively be felt by the investment sector.
“Both local and foreign investments rely heavily on the movement of funds in and out of the country and this system of transfer will be impacted unless action is taken to resolve the current state of affairs.
Clear reduction
He added: “When I looked at the level of investment last year, as compared with this year, it has shown a clear reduction of investments based on the new measures that are being demanded for facilitating transactions.”
According to him, there is much perception on the part of investors for the implications of the advice, because those investors believe that it will negatively affect their investments and, as such, they have indicated that they will withhold theirs until the matter is resolved.
Burrowes, in consulting the Attorney-General and Minister of Legal Affairs, Mr. Anil Nandlall, recalled that the latter had said investors who remit monies to the head office would be negatively impacted by the advisory.
The Go-Invest CEO, having had communications with a number of investors, noted that they have asked for their investment agreements to be placed on hold until word has been given of the relief in circumstances.
Burrowes mentioned that the investment agency is currently evaluating the full extent of the damage done by the advisory since it is unclear, at this juncture, what levels of reduction in investments would be recorded.

(By Derwayne Wills)