Financial Crime World

Guyana’s Central Bank Takes Charge: Overseeing Financial Compliance Regulations and Maintaining Economic Stability

The Bank of Guyana, established in 1965, has been a fundamental part of the country’s financial system. With a mandate to foster domestic price stability and sound financial intermediation, the Bank’s role has evolved over the past five decades.

Expanded Role and Responsibilities

The Bank of Guyana’s mandate has been expanded through various legislative amendments and acts, including:

  • The Financial Institutions Act 1995
  • Money Transfer Agencies (Licensing) Act 2009
  • Dealers in Foreign Currency (Licensing) Act 1989

These acts grant the Bank supervisory authority over:

  • Deposit-taking financial institutions
  • Money transfer services
  • Dealers in foreign currency

Oversight and Regulatory Compliance

The Bank’s expanded role includes overseeing regulations and compliance in the following areas:

Payment Systems

  • Ensuring the efficiency of the payment system
  • Maintaining the national clearing system

Anti-Money Laundering Laws

  • Supervising compliance with the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009
  • Requiring reporting entities subject to Bank supervisory authority to adhere to specific sections of the Act

Financial Activities under Bank Oversight

Entities under Bank of Guyana’s regulatory scope engage in various financial activities, such as:

  • Acceptance of deposits
  • Lending
  • Foreign currency exchange
  • Issuing means of payment
  • Guarantee services
  • Money transfer services

Historical Legislative Changes

The Bank of Guyana has undergone various legislative changes, such as:

  • The Bank of Guyana Act 1998
  • Financial Institutions (Amendment) Act 2018

These revisions have provided the institution with comprehensive powers to address problematic financial institutions and promote financial stability.

Conclusion

As a result of these legislative changes, the Bank of Guyana has emerged as a powerful regulatory body safeguarding Guyana’s financial sector and strengthening the legal basis for the national payments system.