–updated anti-money laundering policy among recommendations made

GUYANA has successfully completed its second Money Laundering/Terrorist Financing (ML/TF) National Risk Assessment (NRA) Report ahead of its Fourth Mutual Evaluation by the Caribbean Financial Action Task Force (CFATF), and will now focus on implementing several recommendations, including the development of an updated National ML/TF Policy and Strategy.

These announcements were made by Attorney-General and Minister of Legal Affairs, Mohabir Anil Nandlall, S.C, on Monday.

In a detailed statement, he confirmed that the Anti-money Laundering and Countering the Financing of Terrorism and Proliferation Financing, National Coordination Committee, which he chairs, has completed its report.

He said that the NRA exercise was conducted in line with the Financial Action Task Force (FATF)’s Recommendation 1, which requires all countries, on an ongoing basis, to identify, assess, and understand their ML/TF risks, and to act and apply resources and preventative measures to mitigate the identified risks, using a risk-based approach.

This exercise is the second ML/TF NRA to be completed by Guyana within the last six years. It was conducted using the NRA tool developed by the World Bank.

According to Minister Nandlall, the second NRA commenced back in December 2019, and was conducted by a Working Group of over 70 persons representing over 40 public and private sector agencies in Guyana.

“Notwithstanding numerous challenges posed by the COVID-19 pandemic, the Working Group concluded the exercise in June 2021. The World Bank provided guidance and support to the Working Group throughout the NRA process. The results of the exercise are detailed within the NRA Report, and an accompanying Risk Based Action Plan, which contains over one hundred recommendations to be implemented by various agencies. These documents have already been shared with key AML/FT stakeholder agencies locally to commence the implementation of the Action Plan,” the release said.

In conducting the exercise, the working group assessed and identified Guyana’s ML/TF threats and vulnerabilities, which included the identification of weaknesses and gaps in the country’s ability to effectively deal with the existing ML/TF vulnerabilities and threats.

He said that the group examined vulnerabilities faced by 20 sectors that are considered as possessing higher than normal risk for ML/TF locally.

These sectors included banks, insurance companies and brokers, money transfer agencies, cambios, securities businesses, attorneys-at-law, accountants, notaries, trust or company service providers, house/ real estate gents, used car/ parts dealers, registered charities, dealers in precious metals (gold dealers), dealers in precious and semi-precious stones (diamond dealers), credit unions, cooperatives, betting shops, casinos, lotteries, and pawnbrokers.

“The Money Laundering and Terrorist Financing threat and vulnerability posed by financial inclusion products, the country’s risk of exposure to proliferation financing, the risk associated with illegal wildlife trade, and money laundering risks associated with Guyana’s emerging oil and gas sector, were also assessed by the working group,” Minister Nandlall said in his statement.

RECOMMENDATIONS
Some of the recommendations put forward by the working group to address the existing ML/TF threats and vulnerabilities include the development of an updated formal National ML/TF Policy and Strategy.

“This policy has been drafted, and we hope to have it finalised with some technical support and guidance from the World Bank, by November 30, 2022,” he said.

Also on the table is additional amendments to the AML/CT Act and other legislation. Some of these proposed amendments have already been drafted and passed by President Mohamed Irfaan Ali since August 11, 2022.

Other recommendations include outreach activities to the relevant authorities. Training programmes for the private sector have already been initiated.

“Additionally, efforts to strengthen domestic cooperation and coordination among competent authorities concerning the development and implementation of AML/FT activities are ongoing. These are just a few of the ongoing measures by the relevant agencies in response to the recommendations by the working group. The country’s efforts to combat financial crimes including money laundering and terrorism financing will continue to be prioritized by the Government,” the AG said.

He added that these efforts are also being implemented to ensure Guyana’s readiness, as the country prepares for its Fourth Round of Mutual Evaluation by the CFATF, which is scheduled for the third quarter of 2023.

The mutual evaluation process has already commenced, with a Pre-Assessment Training facilitated by the CFATF for both public and private Sector AML/CFT stakeholders. The aim of the training, which was held from October 12-14, was to ensure that these key stakeholders understand their AML/CFT roles and responsibilities, and are equipped and prepared for Guyana’s assessment.