LAUNDERING: Authorities Clamp Down on Financial Crimes

New Measures to Combat Money Laundering Offenses

In a bid to combat financial crimes, authorities have been granted sweeping powers to freeze and seize assets linked to money laundering offenses. The new measures, outlined in the Money Laundering Prevention Act, aim to disrupt the flow of illicit funds and bring perpetrators to justice.

Court Powers to Freeze Assets

Under the act, a court can issue an order freezing the property of anyone suspected of or charged with a money laundering offense. This includes assets anywhere in the world, whether owned or controlled by the individual.

• The court may also give directions on how to dispose of the frozen assets, including:
  • Determining ownership disputes
  • Administering the assets during the freeze period
  • Paying debts to creditors
  • Providing for the reasonable subsistence of the individual and their family

However, the order will automatically cease to have effect if the individual is not charged with a money laundering offense within 48 hours of the order being made.

Forfeiture of Assets

In cases where an individual is convicted of a money laundering offense, the court will order that the property, proceeds, or instrumentalities derived from or connected to the offense be forfeited. The Minister will then direct how the forfeited assets are disposed of, which may include:

• Public auction
• Donation to charity

Inference of Guilt

The act also allows for the inference of guilt where evidence shows an individual’s assets have increased in value significantly following a money laundering offense, and their legitimate income cannot reasonably account for the increase.

Protections for Bona Fide Third Parties

To ensure fairness, the act provides protections for bona fide third parties who may have legitimate legal interests in frozen or forfeited assets. These individuals will be notified and given an opportunity to appear before the court to assert their claims.

Application of Provisions

The provisions of the act only apply to property acquired after its coming into force, and authorities are encouraged to cooperate with international counterparts to combat money laundering offenses.

Renewed Commitment to Tackling Financial Crimes

These measures demonstrate a renewed commitment by Guyana’s authorities to tackling financial crimes and disrupting the networks that facilitate them.