Financial Crime World

Guyana’s Financial Sector Gets Boost with New Legislation

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Georgetown, Guyana - In a bid to strengthen its financial sector and promote economic stability, the Government of Guyana has introduced several new pieces of legislation aimed at regulating the insurance industry, improving credit reporting, and enhancing the national payments system.

Credit Reporting Act Amended

In January 2016, the Credit Reporting Act 2010 was amended to improve the efficiency of the credit reporting system. The amendments require:

  • Credit information providers to pull a credit report from the credit bureau prior to granting or renewing credit facilities
  • Entities considered public sources to share credit data with the credit bureau

Insurance Act 2016

The Insurance Act 2016 repealed and replaced the Insurance Act of 1998, providing a new legal framework for the insurance industry. The Act:

  • Enhances the supervisory powers and responsibilities of the Bank of Guyana
  • Promotes competition in the industry
  • Protects consumers

National Payments System Act 2018

The National Payments System Act 2018 aims to create a sound legal framework for the operation and oversight of the payments system in Guyana. The Act:

  • Defines the scope of the payments system
  • Outlines the role and functions of the Bank of Guyana in regulating and overseeing its activities

Deposit Insurance Act 2018

The Deposit Insurance Act 2018 establishes a deposit insurance scheme to protect depositors’ funds. The Act:

  • Creates a Deposit Insurance Fund
  • Establishes a Deposit Insurance Corporation, responsible for managing the fund and related purposes

Key Highlights

  • Credit Reporting Act amendments aim to improve credit reporting efficiency and promote access to finance
  • Insurance Act 2016 enhances supervisory powers and promotes competition in the insurance industry
  • National Payments System Act 2018 creates a sound legal framework for the payments system, promoting financial stability and inclusion
  • Deposit Insurance Act 2018 establishes a deposit insurance scheme to protect depositors’ funds

Implementation Timeline

  • Credit Reporting Act amendments: January 2016
  • Insurance Act 2016: April 16, 2018 (except for certain sections)
  • National Payments System Act 2018: July-August 2018
  • Deposit Insurance Act 2018: Expected to come into force in 2019

These new pieces of legislation aim to promote financial stability and inclusion in Guyana, while also enhancing the country’s regulatory framework. The Bank of Guyana will play a key role in implementing these laws, working closely with other stakeholders to ensure their successful implementation.