GUYANA moves one step closer to becoming financially compliant with international regulations as the National Assembly yesterday passed the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Legislation. The bill, which will be put before President David Granger for his assent, was passed with the absence of the Opposition People’s Progressive Party/Civic (PPP/C) in the National Assembly.
The bill, presented by Attorney General and Minister of Legal Affairs, Basil Williams, signals not only Guyana’s obligation to becoming an AML/CFT compliant regime, but also the commitment of the A Partnership for National Unity+ Alliance For Change (APNU+AFC) coalition Government passing the bill in the 100-day plan of its manifesto.
“The proposed bill has added the person authorised by the Financial Intelligence Unit (FIU), and it has said also that they could seize and detain cash above the sum of $10M anywhere in Guyana,” Williams told the House, adding, “that is not done whimsically or capriciously.”
He stressed the requirement for “cogent evidence” in the legislation before any seizure is done. “It seems to be higher than reasonable suspicion, because you have to have reasonable suspicion also.”
“They cannot seize cash that is in the possession of persons in the course of business, commerce, trade, and such activities,” Williams added. Both the FIU and Special Organised Crime Unit (SOCU) would have to provide the evidence before seizures are done.
Finance Minister Winston Jordan rose in the National Assembly to declare that the passage of the bill is a momentous occasion and that bill is a result of “tremendous efforts and inputs of a wide cross-section of people and entities that are involved in the fight against the twin evils of money laundering and financing of terrorism.”
“These legislative amendments,” Jordan said in his address, “represent our Government’s firm resolve to fight the scourge of money laundering and terrorist financing.” The Finance Minister noted the impact of money laundering on the development of a country.
“It could lead to large scale insolvencies, which can arise if financial institutions’ balance sheets are not valued.” Jordan continued, “If sections of the financial system is owned or controlled by criminal elements, the authorities may encounter difficulties supervising these institutions or identifying problems where financial stability is compromised.”
“If the illegal sector forms a significant part of the economy, and criminal proceeds are withheld from the formal banking system, then official data on such things as employment conception, foreign exchange movement, etc will not reflect the economic reality in the country,” the Finance Minister continued.
He pointed to the difficulties this would place on policy makers being able to assess the state of the economy while formulating appropriate economic policies. “A parallel economy will be operating alongside the official economy, and in many respects, to the detriment of the official economy.”
The International Monetary Fund (IMF) has long expressed concerns about the integrity of financial systems which could have a dampening effect on foreign direct investment. Jordan noted all of this as the right reasons for passing the bill, which was approved in the National Assembly after it was read twice, taken before the Committee of the House, and finally approved by the majority of members in the National Assembly.
Jordan expects the passage of the bill will fuel Guyana’s economic growth.
This bill sought to amend the principal AML Act, which was passed in 2009, and introduces a Financial Intelligence Unit, as well as the enhancement of sanctions and granting greater powers to authorities tasked with safeguarding Guyana’s obligations to the international financial system.

By Derwayne Wills