THE recent remarks by US Ambassador Nicole Theriot regarding the possible election of sanctioned businessman Azruddin Mohamed to Guyana’s Parliament should alert every Guyanese citizen.

The consequences of US Office of Foreign Assets Control (OFAC) sanctions are serious. We can see the immediate impact as banks close accounts for anyone connected to sanctioned individuals. This threat to our nation is clear.

We already see the evidence. Multiple banks, including Demerara Bank and the Guyana Bank for Trade and Industry (GBTI), have quickly shut down accounts of candidates linked to Mohamed’s We Invest in Nationhood (WIN) party.

These actions are not just political; they are smart business choices driven by strict international banking rules. Banks must protect their relationships with US institutions and access to the SWIFT system, the global platform for money transfers. To do this, they often cut ties with anyone linked to sanctioned individuals.
The reach of OFAC sanctions goes well beyond individual issues. Reports are that these measures come with heavy penalties. Fines can hit up to $20 million, and violations may lead to prison sentences of up to 30 years.

Financial institutions also face tough consequences, with civil penalties hitting $250,000 per violation under the International Emergency Economic Powers Act.
This explains why local banks, such as Citizens Bank and Republic Bank, quickly closed the accounts of sanctioned former Permanent Secretary Mae Thomas after her designation.
Ambassador Theriot’s warning that US companies might reconsider their relationships with Guyana if a sanctioned person enters government is not just political posturing. It reflects the legal reality that US persons cannot do business with sanctioned entities.

The ambassador mentioned Afghanistan as an example of how sanctions can ruin a country’s investment climate. This comparison should terrify every Guyanese, especially given the more than US$15 billion in American investment that has come into our economy over the last four years. This amount makes up 96 percent of our foreign direct investment.

The economic implications are enormous. ExxonMobil has already shown how sanctions compliance can affect business by leaving a consortium with the Mohameds after their designation.
If Mohamed were to take office, similar departures could ripple through our economy, forcing companies that fuel our remarkable economic growth to shut down.
More than 3,000 US small and medium enterprises are currently doing business with Guyana. The impact would be devastating for employment, government revenue and our global reputation.
Vice President Bharrat Jagdeo rightly pointed out that banks must take US sanctions seriously or risk losing access to the global financial system.

The “de-risking” trend he mentioned has already caused many Caribbean countries to lose banking relationships with US institutions. For a nation that relies heavily on international trade and investment, this kind of isolation would be disastrous.

The geopolitical effects extend beyond economic concerns. Sanctions lead to diplomatic challenges that would limit our ability to work with international partners. As Ambassador Theriot noted, US officials would be legally barred from working with any sanctioned parliamentarian, creating difficulties for bilateral cooperation.

This situation would weaken our strategic partnerships at a time when we need maximum diplomatic coordination, especially regarding regional security issues such as Venezuela’s territorial claims.

Former President Forbes Burnham’s clash with US power in the 1970s led to economic collapse, a situation that took decades to recover from. We cannot afford to make such mistakes again.
The financial sector’s reaction to these sanctions shows a clear warning of broader consequences. When banks prioritise compliance over customer relations, it highlights the seriousness of potential violations.

The closure of accounts for WIN candidates illustrates how widely sanctions compliance affects associated individuals. This trend would only grow if a sanctioned person gained governmental authority.

The impact goes beyond symbolic protest votes; it could undo the economic progress that has made Guyana one of the world’s fastest-growing economies.
The evidence is overwhelming and the stakes couldn’t be higher. Guyana’s future relies on maintaining our reputation as a trustworthy international partner devoted to the rule of law.