Detailed review, new action plan, political commitment among demands
–Outcomes to be discussed at October meeting

THE Financial Action Task Force (FATF) yesterday officially confirmed its decision to commence a targeted review of Guyana, in a letter dated July 9, 2014, prior to its October 2014 plenary meeting.And the international watchdog made it clear that the purpose of this targeted review will be to examine the most significant deficiencies in Guyana’s Anti-Money Laundering and the Countering of the Financing of Terrorism (AML/CFT) framework that pose a risk to the international financial system.
According to FATF, its review will identify steps that should be taken to address those deficiencies through the development of an Action Plan.
FATF’s letter said, “This review will be conducted by the International Co-operation Review Group (ICRG), Americas Regional Review Group (ARRG), co-chaired by Ms. Darlene Boileau (Canada) and Ms. Maria Fernanda Garcia-Yrigoyen Maúrtua (Peru).

“You would be aware, as well, of the Executive Government’s unassailable commitment to implement the requisite legislative amendments designed to achieve the level of compliance to which you have made reference.” AG and Minister of Legal Affairs, Anil Nandlall

“In our capacity as ICRG Co-Chairs, we now request your full cooperation in assisting the ARRG to conduct this work, including by providing up-to-date information on your jurisdiction related to AML and CFT issues as requested by the ARRG co-chairs.”

Guyana, according to the letter, will be given an opportunity to review the draft targeted review and to have a face-to-face meeting with the ARRG.
“Once the Action Plan has been finalised, the FATF will request a written confirmation of your high-level political commitment to fully address the identified strategic deficiencies, including by implementing the Action Plan within the agreed timelines,” the international body said.
At its next meeting on 20-24 October, 2014, in Paris, France, the FATF is expected to discuss the results of Guyana’s targeted review.
“If the FATF agrees with the recommendations in the targeted review, the FATF will then determine that a public statement regarding your jurisdiction is warranted to address the risks posed by deficiencies in your AML/CFT regime,” the letter said.
At the recent June, 2014 FATF Plenary, FATF members agreed that Guyana should be subject to further review with respect to its compliance with the international standards for AML/CFT. This decision was made following up to the referral made by the Chair of the Caribbean Financial Action Task Force (CFATF) received on 10 June 2014. The nomination was based on the lack of progress in addressing strategic deficiencies in Guyana’s AML/CFT regime, which resulted in a series of public statements issued by the CFATF, most recently on 29 May 2014.

“We simply cannot get a meeting. I tried last week and again this week proposing that we meet on June 18, but Mr. Williams has indicated that the APNU members will not be available until after the PNC’s (People’s National Congress) Congress.” Select Committee Chair, Gail Teixeira

FULL COOPERATION
The Attorney-General and Minister of Legal Affairs, Anil Nandlall, to whom the letter was addressed, has since responded to FATF and assured of the Government’s full support during the process.
He said, “I take this opportunity to assure you of the Government’s fullest and most unbridled cooperation in assisting the ARRG in the conduct of its work and the discharge of its functional responsibilities.I remain hopeful for a most fruitful and magnanimous engagement.”
The AG also underscored the uphill battle the current Administration has waged in getting the AML/CFT (Amendment) Bill passed in the National Assembly.
Nandlall said, “I have no doubt that you are aware of the peculiar historical evolution of Guyana’s inability to effect compliance with international standards for AML/CFT. You would be aware, as well, of the Executive Government’s unassailable commitment to implement the requisite legislative amendments designed to achieve the level of compliance to which you have made reference.
“Unfortunately, the Government’s efforts to accomplish this objective have been and continue to be thwarted and frustrated by a Legislature in which the joint Opposition political parties enjoy a majority vote.”
In November 2011, the CFATF first brought to the attention of its members certain jurisdictions — including Guyana — with significant strategic deficiencies in their AML/CFT regimes. The intent was to encourage expeditious rectification of the identified strategic deficiencies.
Guyana and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Guyana’s national architecture to combat money laundering and the financing of terrorism.
However, the Government and the combined Opposition have been in gridlock over compliance in the areas requiring the passage of legislation.
The current Administration has repeated its willingness to have the bill passed, and has demonstrated its commitment to same; but up to the last meeting of the Parliament Special Select Committee no movement had been made with the Bill.

NO COMMITTEE MEETING
Meanwhile, Chair of the Committee, Ms. Gail Teixeira, told the Guyana Chronicle yesterday that attempts, since June 11, to settle a date for a meeting of the Select Committee has proven futile.
According to her, the main Opposition, through Mr. Basil Williams, has repeatedly insisted on A Partnership for National Unity’s (APNU) unavailability to meet.
She said, “We simply cannot get a meeting. I tried last week and again this week, proposing that we meet on June 18, but Mr. Williams has indicated that the APNU members will not be available until after the PNC’s (People’s National Congress) Congress.”
Teixeira made it clear that while Guyana is now subjected to FATF’s review over the next four months, the country does not have four months to pass the AML/CFT (Amendment) Bill, which she maintains will help Guyana’s case during the review.
“We do not have four months. For one, the National Assembly goes into recess from August 10 until October 10, so that leaves us with about a month,” the Committee Chair said.
The Bill to meet the requirements of the FATF-Style Regional Bodies (FSRB), CFATF was tabled in the National Assembly in April 2013, but was subsequently referred to a Parliamentary Special Select Committee and eventually voted down by the combined Opposition in November 2013. The bill was re-tabled in December 2013, and was again referred to the Parliamentary Special Select Committee, where it has since been languishing.
The last Select Committee meeting was in early June, and up to press time, there has been no confirmation of a date for the next meeting.
FATF, the global standard-setter and promoter of policies for anti-money laundering and combating the financing of terrorism (AML/CFT), adopted procedures in June 2009 for identifying and working with jurisdictions with strategic AML/CFT deficiencies. These procedures respond to specific requests of the G-20 Heads of States and Ministers who called upon the FATF to revise and reinvigorate this process and issue regular public updates identifying jurisdictions with strategic AML/CFT deficiencies. This process is managed by the FATF’s ICRG and is aimed at protecting the international financial system from ML and FT risks and encouraging greater global compliance with the international standards for AML/CFT.

(By Vanessa Narine)