Guyana’s Banking Regulations and Compliance: A Shift towards Strengthened Oversight
The Bank of Guyana has played a vital role in Guyana’s financial system since its establishment in 1965. Over the past five decades, the bank’s role has undergone significant expansion through legislative amendments and acts.
Expanded Supervisory Authority
Legislative changes have granted the Bank supervisory authority over:
- Deposit-taking financial institutions
- Money transfer services
- Dealers in foreign currency
This expanded role now includes oversight of regulations and compliance in key areas such as:
Payment Systems
The Bank ensures the efficiency of Guyana’s payment system and maintains the national clearing system, guaranteeing seamless transactions between financial institutions.
Anti-Money Laundering Laws
The Bank supervises compliance with the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009, requiring reporting entities to adhere to specific sections of the Act. This stringent approach aims to prevent illegal activities and maintain Guyana’s international reputation.
Financial Activities under Bank Oversight
Entities subject to Bank of Guyana regulatory scope engage in a range of financial activities, including:
- Deposit acceptance
- Lending
- Foreign currency exchange
- Issuing means of payment
- Guarantee services
- Money transfer services
Historical Legislative Changes
The Bank has undergone significant legislative revisions, including:
1998 Bank of Guyana Act
This act equipped the institution with comprehensive powers to address problematic financial institutions and promote financial stability.
Financial Institutions (Amendment) Act 2018
This amendment further strengthened the Bank’s regulatory framework, enabling it to effectively monitor and regulate financial institutions.
Conclusion
The Bank of Guyana’s expanded role and strengthened regulatory framework have cemented its position as a powerful guardian of Guyana’s financial sector. The country’s payment system is now secure and resilient, thanks to the bank’s commitment to oversight and compliance.