Financial Crime World

Guyana to Amend Financial Institutions Act to Boost Investment Climate and Compliance with International Standards

President Irfaan Ali has announced plans to update Guyana’s Financial Institutions Act (FIA) to ease access to capital, boost the investment climate, and enhance compliance with international banking standards.

Key Changes

  • Granting banks more independence to tackle issues of access to finance, a major concern for Guyana’s private sector.
  • Allowing banks to establish representative offices with bank approval, enabling them to facilitate foreign direct investment by linking capital to investment opportunities.
  • Providing regulatory oversight for licensed financial institutions to set fair service fees, promoting financial inclusion and market fairness.

Strengthening Regulation

  • Increasing sanctions for non-compliance by financial institutions to encourage adherence to statutory requirements and supervisory directives.
  • Removing consultation requirements with the Minister of Finance, allowing for more effective supervision and cooperation among authorities.

Modernizing the Financial System

  • Strengthening legal protection for government officers and bank employees in their duties, benefiting Guyana by modernizing its financial and banking system as the economy grows.
  • Updating the legal framework, rules, regulations, and principles governing the banking sector, improving mechanisms for asset transfer during business transactions.

Private Sector Support

  • Addressing the issue of access to finance, a longstanding concern for Guyanese businesses looking to capitalize on the country’s growth trajectory.
  • Providing financial institutions with creative mechanisms to help businesses grow, as advocated by private sector organizations.

President’s Vision

  • President Ali has called for a transformative approach in banking, emphasizing the need for investment bankers and sophisticated financial instruments to manage the country’s burgeoning scale of operations.
  • The changes aim to take Guyana’s banking sector to the top tier beyond any other jurisdiction in the region, making it more attractive to international investors.

By implementing these amendments, Guyana aims to strengthen its financial and banking system as the economy grows, promoting a more attractive investment climate for international institutions.