— hails progress made as significant

The U.S Department of State said Guyana has made significant progress on the Anti-Money Laundering (AML) front but more investigations and successful prosecutions are needed.

In its 2019 U.S International Narcotics Control Strategy Report Volume II: Money Laundering, the U.S Department of State noted that Guyana’s National Risk Assessment 2017 found that it has a medium-to-high money laundering risk.

“Unregulated currency exchange houses and dealers in precious metals and stones pose a risk to Guyana’s AML/CFT system. Other sectoral vulnerabilities include the banking industry and unregulated attorneys, real estate agents, used car dealers, and charities,” the U.S Department of State explained.

In an interview with the Guyana Chronicle on Friday, Attorney General and Minister of Legal Affairs, Basil Williams, said that cognisant of the challenges and risks it currently faces in the fight to combat money laundering, Guyana appointed Rommel St. Hill as its new assistant solicitor general with responsibility for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT). St. Hill, an attorney-at-law for more than 12 years, is the former legal adviser for the Caribbean Financial Action Task Force (CFATF). St. Hill is tasked with developing an AML/CFT strategy for the country.

The legal affairs minister said Guyana’s National Risk Assessment (NRA) report identified and acknowledged that cambios and money transfer entities pose a high risk to the AML regime. In 2018, the Ministry of Legal Affairs announced that a risk-based supervisory approach would take effect to closely monitor money transfer services and cambios.

Coupled with that, the Legal Affairs Ministry has been conducting a series of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) outreaches and sensitisation seminars, as it seeks to raise awareness and build capacity. Minister Williams said, this year, the Legal Affairs Ministry will be intensifying its efforts. “We are going to continue our countrywide outreaches and we are going to continue to sensitise not only cambios, but money transfer agencies,” he said.

WIDE FOCUS
Minister Williams noted that focus is also being placed on charities and co-ops. Additionally, he said his ministry will be working to build the capacity of the Special Organisation Crime Unit (SOCU) and other agencies critical to the fight. He said at this stage, conviction of money launderers is important.

Under Williams’ stewardship, Guyana has recorded significant progress in addressing the deficiencies within its AML/CFT regime, which has resulted in it being removed from the CFATF Blacklist and most recently, the European Commission’s Money-Laundering Blacklist.
“So we are going to build on the good work we have been doing since we came into office,” the legal affairs minister said.

The Guyana Police Force (GPF), the Guyana Revenue Authority, the Customs Anti-Narcotics Unit, the Special Organised Crime Unit (SOCU), the Bank of Guyana, the Ministry of Finance, the Financial Intelligence Unit (FIU), and the National Anti-Narcotic Agency are among key players involved in the anti-drug and money laundering efforts.

In its report, the U.S State Department said historically, the primary sources of laundered funds are narcotics trafficking and real estate fraud; however, other illicit activities, including human trafficking, gold smuggling, contraband and tax evasion, are also sources.
“The licensing policies and procedures of Guyana’s unsophisticated banking and financial institutions increase the risk of drug money laundering. Guyana does not have FTZs, offshore financial centres, cyber currencies, or economic citizenship programmes,” it pointed out.

It was noted that Guyana; however, permits gaming. A gaming authority regulates and supervises all gaming activities.

COMMON TYPOLOGIES
The State Department reported too that common money laundering typologies in the country include large cash deposits using fake agreements of sale for non-existing precious minerals, cross-border transport of concealed precious metals to avoid payment of the relevant taxes and duties, and wire transfer fraud using compromised email accounts.

In an effort to strengthen its AML/CFT regime over the years, the Guyana Government has put a number of legislative frameworks in place, including an Anti-Money Laundering and Countering the Financing of Terrorism Act 2009, Interception of Communications Act 2008, and Criminal Law Procedure Act. It also passed the State Assets Recovery Act, the Protected Disclosures Act, and the National Payments Systems Act in 2018 to bolster its legislative response.

“Guyana amended its AML/CFT law and the Guyana Gold Board legislation, and established the National Coordination Committee to be responsible for overall AML policy. The National Coordination Committee will develop a national AML action plan,” it reported while noting too that the National Payments Systems Act establishes payment and oversight mechanisms.

It was noted by the U.S State Department, that the country is actively building capacity among the key players in the fight to reduce and ultimately eradicate money laundering.

“The government trained 500 financial-sector personnel on AML best practices. The Bank of Guyana reviewed its supervisory policies and procedures for financial institutions, and developed standard AML/CFT guidelines for money transfer agencies and currency exchange houses,” the U.S State Department pointed out.
According to the U.S State Department, Guyana has strong legislation relating to money laundering.

“Its AML legislation covers legal persons and provides enhanced due diligence for politically-exposed persons,” it reported, but said that the country lacks standardised provisions for secure electronic communications and transactions.

It also said Guyana lacks a national strategic plan for combating money laundering and terrorist financing. But, the attorney general has assured that this is a work in progress, reiterating that St. Hill will spearhead the crafting of the strategy.

U.S State Department noted too that though SOCU launched investigations into reports of suspicious transactions, there have not been any convictions to date.

“The authorities report non-cooperation by stakeholders with SOCU and lack of capacity within SOCU hinders its success at prosecutions. Guyana has shown strong political will to combat money laundering and has made progress on the AML front,” it reiterated.

It said the government still needs to train the judiciary on matters pertaining to the investigation and prosecution of financial crimes. A national strategic plan for combating money laundering should be developed and implemented and legislation enacted for the facilitation and regulation of secure electronic communications and transactions.