JUDGES and prosecutors from the 25 member countries of the Caribbean Financial Action Task Force (CFATF) are gearing up for a high-level forum here on Anti-Money Laundering and the Countering of Financing of Terrorism (AML/CFT) on May 3rd and 4th .
But as the regional judges and prosecutors prepare to meet, CARICOM is expressing serious concern over possible sanctions its associate members could face, if the UK Parliament passes the Sanction and Anti-Money Laundering Bill.

On Tuesday, the UK Parliament is expected to debate the Sanctions and Anti-Money Laundering Bill which, if passed, according to CARICOM, can have troubling effects on the financial services of the Overseas Countries and Territories.

On Saturday, CARICOM said it is cognisant that global security and financial crimes are increasingly intertwined, and therefore supports the work of the Financial Action Task Force (FATF) and its FATF-Style Regional Bodies (FSRB) in developing international AML/CFT standards to combat money laundering and terrorist financing.

However, CARICOM said it is concerned about the possible impositions the Sanctions and Anti-Money Laundering Bill can have on its associate members. Those members include Anguilla, Bermuda, British Virgin Islands, The Cayman Islands and Turks & Caicos Islands.
“We are deeply concerned about the potential impact on their economies by any impositions that would go against the spirit of democracy and diminish their standards of living,” CARICOM said in a statement.

It noted that within the community, member states and associate members have utilised a significant amount of resources to achieve compliance with AML/CFT standards. Countries in the Region, CARICOM added, have also supported global initiatives led by the OECD Global Forum and have entered the necessary international agreements to facilitate the sharing of information on beneficial ownership.

“CARICOM associate members are an integral part of the Caribbean Community family whose circumstances, self-governance and democratic rights should not be disregarded,” the secretariat said, while further pointing out that “a number of… (its) associate members have for some time run successful financial centres that meet the high standards of regulation set by international standard-setting bodies such as the Financial Action Task Force (FATF) and OECD Global Forum.”

CARICOM said instead of unilateral measures, members of the FATF and OECD Global Forum should work together to establish new international regulatory standards in areas such as beneficial ownership and tax information exchange.
“Such co-operation would be in the best interest of all in the pursuit of a more economically prosperous future, underpinned by international institutions, and where all societies, their internal institutions and peoples are respected,” it stated.

The call comes just days away from the hosting of the high-level forum for judges and prosecutors, a forum organised by the Government of Guyana in collaboration with the Commonwealth Secretariat, CFATF and the Caribbean Development Bank (CDB). President David Granger; Commonwealth Secretary-General Patricia Scotland; CFATF Chairman and Attorney General, Basil Williams; and CFATF Executive Director, Dawne Spicer, are expected to address the opening ceremony at the Pegasus Hotel.

Since exiting the Third Round, Guyana is increasing its efforts to bring money launderers to justice as it prepares for the Fourth Round of Mutual Evaluation. Starting from 2015, the country was able to make significant progress, resulting in it being removed from FATF’s watch list in October 2016. Currently, Guyana has an Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act in place, along with other related legislation governing supervisory bodies, financial institutions, law enforcement, and foreign affairs.

Now, it is taking steps to ensure that the legislation in place is effective. The Fourth Round of Mutual Evaluation is conducted by FATF for its members based on its 2012 Recommendations and the Methodology for Assessing Compliance with the FATF Recommendations and the Effectiveness of AML/CFT Systems (2013), which is periodically amended.