Government has been working assiduously since its assumption to office in 2015 to root out corruption, implement systems to safeguard the state’s resources and ensure that Guyana is in compliance with international norms and best practices. New legislation to ensure the protection of state assets, address the incidence of financial crimes and the financing of terrorism, root out corruption and ensure transparency and accountability have been put in place to ensure that the lawlessness, which once characterised Guyana, is eradicated.

In this week’s Government in Action, we will take a look at the measures the Government has taken to bring its financial laws in compliance with international best practices as well as the set-up of other institutions and legislation to tackle corruption, money laundering, the financing of terrorism and other financial crimes in and out of the public sector.

Among the measures has been the enactment of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill, which has seen Guyana, moving from a place of being blacklisted to being in compliance with international best practices.

Legislation to address corruption
In 2013, under the People’s Progressive Party (PPP) Administration, Guyana was blacklisted by the Caribbean Financial Action Task Force (CFATF) as a result of the non-enactment of the AML/CFT Bill. A blacklist for Guyana imposed hardships on the population, with the halting of financial transactions with major international financial institutions.

In 2015, however, when the coalition Government took office, its first mission was to ensure that the AML/CFT Amendment Bill was passed and systems put in place to ensure that Guyana was brought into compliance with the international norms and best practices governing financial transactions. On May 26, 2015, just 10 days after taking office, the AML/CFT Bill was passed by the National Assembly. This brought Guyana into compliance with the requirements set out by the oversight body, the Financial Action Task Force (FATF).

Since then, significant strides have been made in ensuring that Guyana enacts and enforces laws, which can protect the country from financial crimes such as money laundering and the financing of terrorism. CFATF had developed an Action Plan with identified target dates to address the strategic deficiencies that existed in Guyana’s national architecture to combat money laundering and the financing of terrorism. Some of the requirements included enhanced due diligence measures; introducing enhanced reporting mechanisms or systematic reporting of financial transactions, among others, all of which the Government was able to address, bringing the country into full compliance.

In 2016, at the end of a plenary meeting of the Financial Action Task Force (FATF), the global organisation announced that Guyana has been removed from the global process in the light of its successful progress in addressing certain AML/CFT deficiencies but pointed out that the country will still be monitored to ensure its AML/CFT regime is improved.

“The FATF congratulated Guyana for the significant progress it has made in addressing the strategic AML/CFT deficiencies earlier identified by the FATF and included in its action plan. Guyana will no longer be subject to the FATF’s monitoring under its on-going global AML/CFT compliance process. The country will work with the Caribbean Financial Action Task Force (CFATF), of which it is a member, to further strengthen its AML/CFT regime,” the body said in a statement at that time.

But transparency and accountability cannot be achieved without a robust legislative agenda, which establishes a strong regulatory framework that is administered by an independent judiciary and the Government is cognisant of this fact.

On May 3, 2018, a two-day workshop, held under the theme, “Anti- Money Laundering and Countering of Financing of Terrorism, Countering Violent Extremism,” organised by the Government of Guyana in collaboration with the Commonwealth Secretariat and CFATF, opened at the Pegasus Hotel, with its target being Judges and Magistrates from Commonwealth Member States across the Caribbean.

President David Granger, speaking at the opening ceremony, said that the rule of law must be strengthened and safeguarded to ensure that the fight against money-laundering and terrorist-financing is successful. The rule of law is society’s sword and shield against financial crimes. It is the bulwark, which protects citizens against despotism. Caribbean citizens, without the protection of the law, could become captive to slick organised crime. The criminal justice systems of small states must be safeguarded from the subversion of organised crime. The rule of law must be a shield, protecting our citizens and our institutions and a spear to combat money-laundering and terrorist-financing by inculcating norms which encourage compliance with the laws, increasing the likelihood of interdiction and prosecution of financial crimes and imposing penalties, which act as effective deterrents to such crimes,” he said.

The Head of State said that the Caribbean countries must be resourced and supported to protect their institutions against the threats of money-laundering and terrorist-financing as these states have become an attractive destination for financial pirates, privateers, money-launderers and tax-evaders. President Granger said robust legislation and sturdy institutions are the weapons in the war against financial crimes.

“Guyana has strengthened its institutions – such as the Bank of Guyana, the Financial Intelligence Unit and the Office of the Director of Public Prosecutions – which have been empowered with the authority and autonomy and equipped with the technical resources and personnel to discharge their functions under its Anti-Money Laundering and the Countering Terrorism-Financing legislation,” the Head of State noted.

Minister of State, Mr. Joseph Harmon, in an interview with the Public Information and Press Services Unit of the Ministry of the Presidency recently, said that the David Granger Administration, since its assumption to office in 2015, has had the “Herculean” task of fixing the systematic corruption which existed under the former administration. He noted that it is under this administration that significant steps were taken to improve accountability and transparency in the public sector and the world’s perception of Guyana.

“I believe in action and not just talk and the action is that our approach to the FATF, the commitments under the FATF is basically putting your money where your mouth is. Minister Williams is the Chairman of the CFATF and all of these steps have been taken since we came into office to ensure that we can move this country out of all these different lists as we call them, the blacklist, greylist, white list and all of these things. So that we are placed in a situation where we can now be an example to the rest of the region, we can be an example to the world, and what financial probity is all about,” the Minister of State noted.

Government committed to rooting out corruption
Government has spared no effort in its effort to begin the long process of eliminating corruption at the national level. The Government since 2015, has ensured that the work of the Special Organised Crime Unit (SOCU), which was established in 2013, fulfils its mandate. SOCU was one of the recommendations outlined by the FATF programme of activities to ensure Guyana’s compliance with international financial obligations. The Unit, an arm of the Guyana Police Force, is mandated to investigate suspected money laundering crimes, and to prosecute persons suspected of terrorism and financial offences.

Along with SOCU, the State Assets Recovery Unit (SARU) was established as a result of obligations under the United Nations (UN) Convention Against Corruption. The unit has been tasked with investigating claims of corruption and malfeasance committed against the State. Government has also ensured that the Integrity Commission, the Judicial Service Commission and the Public Service Appellate Tribunal were all put in place to ensure a corrupt-free, efficient and effective public sector.

Attorney General and Minister of Legal Affairs, Mr. Basil Williams, M.P., S.C. said that the State Assets Recovery Bill is Government’s reaffirmation of its commitment to stamp out corruption. He made clear the Administration’s stance that there would be no safe haven for those guilty of corrupt and criminal acts as it is the Government’s vision to build institutions based on justice and integrity.

The Act also deals with the establishment of the Recovery of State Assets Fund, civil recovery, and preservation of state property obtained through unlawful conduct and orders to assist investigation and international co-operation. “The legislation will send a strong message that corruption at any level will not be tolerated by this Government. Those who plunder stolen assets must not be allowed to profit from them,” the Attorney General said.

Secretary-General of the Commonwealth, the Right Honourable Baroness Patricia Scotland, who also delivered remarks at the workshop for Judges and Prosecutors, said that the Commonwealth Secretariat is pleased by the commitment shown by member states, including Guyana, in fighting these crimes and rooting corruption, which eats away at the fabric of society.

“We are encouraged by the commitment from all our leaders at Commonwealth Heads of Government Meeting (CHOGM) to be bold in our ambition and what we can achieve. Heads recognised that the Commonwealth has always been a strong advocate of the causes of small states… We have a duty to be vigilant guardians, protecting the safety and well-being of all of our people and ensuring that we have the capacity to safeguard our institutions in order to safeguard them from being exploited by criminal and terrorist purposes. We know the difference in the money our nations need to deliver on the Sustainable Development Goals and the money we have is the amount, which is syphoned off by corruption and illicit practice so the more we can interdict this… likely our Governments will have the money they need for the roads, the schools, the health services,” the Secretary-General said.

Improving accountability and transparency
Minister Harmon said that the Government remains committed to the tenets of accountability and transparency and stands by its record of management in public office. On behalf of the Government of Guyana, he pledged that it will continue to govern the country with integrity and respect for the rule of law and public officials continue to be held to high standards to ensure that the Guyanese society does not return to the state of lawlessness it once was over two decades ago.

“I am convinced that we are on the right path. I am convinced that we are doing the right things, maybe not as fast as we need to do it, but sometimes when you have a heavy load, you have to fetch it and then at the same time, move forward, it slows you up a little bit and that heavy load and heavy burden is the years of corrupt practices, which we have to clean up that we inherited from the previous administration,” Minister Harmon noted.

Corruption in any form stifles a country and depletes the moral fabric of society. A corrupt society marred by criminality becomes a hazard to its citizens. The Government of Guyana, cognisant of this fact and with the commitment from President Granger and his Cabinet have embarked on a journey to ensure the country is governed in accordance with the rule of law and perpetrators of these crimes, which deprive society of critical resources are prosecuted to the full extent of the law.