Financial Crime World

Guyana’s Financial Sector Regulatory Framework Enhanced with New Legislation

Strengthening Financial Stability in Guyana

Georgetown, Guyana - The financial sector in Guyana has received a significant boost with the passage of several new legislations aimed at enhancing the regulatory framework and promoting stability and growth.

Credit Reporting Act Amendments

In 2016, the Credit Reporting Act was amended to improve the efficiency of the credit reporting system. Key amendments included:

  • Mandating that credit information providers share credit information with the credit bureau on all persons to whom credit facilities have been extended
  • Requiring entities considered public sources, including utility companies, to share credit data or credit information which is publicly available

Insurance Act Reforms

The Insurance Act 2016 repealed and replaced the Insurance Act of 1998 and introduced a risk-based approach to supervision. This promotes competition in the insurance industry and protects consumers. The Act also established:

  • A new Solvency Assessment and Management (SAM) regime to ensure the financial soundness of insurers and protect policyholders

National Payments System Act

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

  • Defining the scope of the payments system
  • Outlining the role and functions of the Bank of Guyana in regulating and overseeing payment activities

Deposit Insurance Act

The Deposit Insurance Act 2018 establishes a Deposit Insurance Scheme to protect depositors’ funds. Key provisions include:

  • The establishment of a Deposit Insurance Corporation responsible for managing the scheme
  • The Bank of Guyana will play a key role in the corporation, serving as Chairman of the Board and sharing supervisory information on licensed deposit-taking financial institutions

Enhancing Financial Stability

The new legislation is expected to enhance financial stability in Guyana by:

  • Promoting a sound and efficient national payments system
  • Protecting depositors’ funds
  • Ensuring the financial soundness of insurers

Implementation

The new legislation is expected to be implemented in 2019, with several pieces of implementing regulations to be promulgated in the coming months. The Bank of Guyana will work closely with other regulatory bodies and stakeholders to ensure a successful implementation of these reforms.