MONEY laundering is a very pervasive criminal action, whereby the proceeds of crime are transformed into legitimate or other assets, using rather complex measures. In simple terms, it is a defined methodology of criminality, disguising the original ownership and control of ill-gotten gains, by making the latter appears to have been derived from a legitimate source. It is now a proven fact that such “washed” funds are also used to fund terrorism activities.
Thus, this is a crime of a trans-national nature, and is persistent within every state within the international system, affected directly or indirectly by its menacing tentacles. Therefore, a crime of this nature, often involves persons of varied professions, because of its maze-like structure.
It is as a result of this international illegality that has grown into a truly worldwide problem, rather lucrative, with a reported US$300B annually sifting through this sophisticated process, that has caused most countries to enact legislation to counter this criminal threat.
COMPLIANCE

CARICOM nations, inclusive of Guyana, are no exception, since they all have been made to enact legislation to combat the risks of money laundering and finance for terrorism, based on recommendations by the Caribbean Financial Action Task Force (CFATF), the regional oversight body, tasked with overseeing and reviewing member states’ compliance. This means that legislation is an absolute compulsion, since failure to do so, attracts punitive sanctions from oversight bodies mandated to ensure compliance.

GUYANA LEGISLATION

Guyana would have legislated the Money Laundering (Prevention) Act in 2000, and then followed by the Anti Money Laundering and Countering the Financing of Terrorism Act in 2009.

However, in November 2011, the Guyana Government was informed by (CFATF) regulators that there was need to ensure that the country’s financial regulations were reinforced, elevating such to the level of compliance with existing international best practices.

In fact, it was reported that concomitant to this advice, was a set of amendments which was given, for such an important exercise; and that it was to be shared with the then political Opposition, and other key stakeholders. Attached, was also an action plan with target dates to address these deficiencies.

It is instructive to note, however, that such information had not been imparted to the political Opposition, or to other stakeholders. Two years later, nothing had been done by the then administration.

SELECT COMMITTEE

But in April 2013, with a further demand from CFATF, this critical issue then became public knowledge, as the Government sought to introduce the measure for urgent, parliamentary vote/approval. The political Opposition, of the A Partnership for National Unity (APNU) and the Alliance For Change (AFC) parties, recommended that the Bill be forwarded to a Parliamentary Select Committee, citing deficiencies, and for reasonable time in ensuring a proper compliant Bill for legislation.
This Parliamentary Committee, was made up of representatives from both sides of the House, and chaired by the Government’s Chief Whip.

Six months later, and with no consensus as to amendments agreed for a finished legislative product, the Donald Ramotar government withdrew the Bill from the Committee, and returned it to the House for action. As was expected, the opposition side of the House defeated this renewed attempt, giving as reasons its premature removal from the Parliamentary Committee. They contended that because of this, the Bill was incomplete, as far as making it compliant had been concerned.
This resulted in CFATF, advising member countries to effect safeguards against risks of money laundering and financing of terrorism, when doing business with Guyana.

ASSISTANCE OFFERED

In February, 2014, in efforts to assist Guyana towards the desired goal of legislating a compliant Anti Money Laundering and Countering the Financing of Terrorism Bill(AML/CTF), CFATF’s financial advisor, Roger Hernandez visited, during which he advised the Parliamentary committee that a compliant Bill should be legislated, for consideration by CFATF’s plenary session in May, 2014.
There was also a similar visit in April, 2014 by the organisation’s most senior personnel, its chairperson, Ms Allyson Maynard-Gibson, and Executive Director, Calvin Wilson, in a bid to end the stalemate.
The political opposition maintained its line of non-support; and adding to its contention of insufficiency of amendments for a compliant Bill, were also demands for unsigned Bills approved by the National Assembly to be assented; the establishment of a procurement commission; and the announcement of a commencement date for Local Government elections.

HIGH LEVEL COMMITMENT

Since the visit of these high officials, Guyana has been granted at least two extensions; and because of missed deadlines, it was then referred to the Financial Action Task Force’s (FATF) International Cooperation Review Group (IRCG) for its October 2014 plenary in Paris. At this important meeting, the then Attorney General, Mr Anil Nandlall, representing the PPP/C government, gave what was described as a “high level commitment”, in addition to a Letter of Commitment by the then President, Donald Ramotar. Also there was a commitment to plug the loopholes in the country’s existing Anti Money regime. These assurances averted a blacklisting.

STRINGENT DUE DILIGENCE

Accordingly, due to CFATF’S prior advisory to member countries when negotiating business transactions with Guyana, effects were being felt; for according to Governor of the Guyana Central Bank, Dr Gobin Ganga, he was already in receipt of complaints from local financial institutions of the intense scrutiny to which their transactions were subjected. He opined that because of the stringent level of due diligence, higher transaction costs were incurred, with direct effects on commercial Banks and businesspersons.

AML/CFT ready for National Assembly

Guyana, since the Paris Plenary, has been implementing a seven-point plan, shaped by the Americas Region Recovery Group (ARRG) as mandated by the FATF International Co-operation Review Group (ICRG), to address its strategic AML/CFT deficiencies.
And at this time of writing, the newly appointed Attorney General, Mr Basil Williams, on behalf of the recently elected coalition Government, has reported that the AML/CFT Bill has been properly amended to include whatever proposals it has recommended, inclusive of those of the ARRG, and was therefore ready for (yesterday’s) Sitting of the House.
Guyana is required to pass a Bill, that will fully criminalise money laundering and terrorist financing issues; address all the requirements for suspicious transactions, reporting, improve international cooperation, and ensure the freezing and confiscation of all terrorist assets. (GINA)