Financial Crime World

Financial Crimewatch: CFATF Sounds Alarm over Guyana’s Money Laundering Risks

Date: 28th May 2023

The Caribbean Financial Action Task Force (CFATF) has identified deficiencies in Guyana’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) measures and has urged caution among its members and other jurisdictions.

Guyana’s AML/CFT Deficiencies

According to a statement from the CFATF, Guyana’s strategic deficiencies include:

  • Lack of effective Politically Exposed Persons (PEPs) legislation: The absence of PEPs legislation poses a significant risk as it limits the ability to investigate and prevent potential money laundering activities by high-risk officials.
  • Inadequate supervisory and enforcement capacity: The limited supervisory and enforcement capacity makes it challenging to effectively combat money laundering and terrorist financing.
  • Insufficient legal framework to identify and confiscate proceeds of crime: An inadequate legal framework hampers the identification, confiscation, and recovery of proceeds from crime.
  • Limited international cooperation: The lack of international cooperation further hinders the effectiveness of AML/CFT measures.

CFATF’s Recommendation and Consequences

Guyana’s ongoing non-compliance with international AML/CFT standards poses a substantial threat to the international financial system. The CFATF has now referred Guyana to the Financial Action Task Force (FATF), the global standard-setting body for anti-money laundering and counter-terrorist financing.

Belize’s Progress and CFATF’s Goals

While addressing AML/CFT deficiencies in Guyana, the CFATF recognized Belize’s significant progress. Belize, which was under FATF’s monitor list since 2012, managed to exit the list following a thorough evaluation by the CFATF.

The Role of CFATF

The CFATF is an organization primarily focused on combating money laundering and terrorist financing in the Caribbean Region. It comprises thirty-one territories, including English-speaking, Dutch, French, and Spanish-speaking countries and dependencies.

Global Crusade Against Financial Crimes

The CFATF’s move against Guyana is part of a broader global crusade against financial crimes. Various international organizations and national authorities are intensifying their efforts to tackle money laundering, terrorist financing, and related illicit activities.

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