Financial Crime World

Guyana Tightens Grip on Proliferation Financing and Targeted Financial Sanctions

Crackdown on Proliferation Financing

The Financial Intelligence Unit (FIU) of Guyana has launched a crackdown on proliferation financing, a criminal offense that involves providing funds or financial services for the development, export, and use of nuclear, chemical, and biological weapons. This illegal activity can result in severe consequences, including fines ranging from $5 million to $100 million or up to seven years in prison for individuals, and fines between $10 million and $200 million for corporations.

Targeted Financial Sanctions

The FIU has also imposed targeted financial sanctions on individuals and entities linked to terrorism, terrorist financing, and proliferation financing. These sanctions include:

  • Asset freezing
  • Prohibitions on providing funds or other assets to listed persons or entities

A list of designated individuals and entities is maintained by the United Nations Security Council (UNSC) and Guyana’s government.

Reporting Entities

Reporting entities, including commercial banks, money transfer agencies, and insurance companies, are prohibited from dealing with the funds or assets of these individuals and entities. These entities must maintain a high level of vigilance to detect and prevent suspicious transactions and activities.

Support for AML/CFT Operational Network

The FIU plays a central role in Guyana’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) operational network, providing support to other competent authorities such as:

  • Special Organized Crime Unit (SOCU)
  • Guyana Revenue Authority (GRA)
  • Land, Deeds and Commercial Registries

Supervisory Authorities

Supervisory authorities, including:

  • Governor of the Bank of Guyana
  • Guyana Securities Council
  • Guyana Gold Board

have been designated to ensure compliance by reporting entities with the requirements of the AML/CFT legislation. These authorities have powers to:

  • Examine and supervise reporting entities
  • Issue instructions and guidelines
  • Provide training on obligations under the law

Core Function of FIU

The FIU’s core function is supported by cooperation and collaboration with:

  • Reporting entities
  • Supervisory authorities
  • Other competent authorities

The unit maintains:

  • Statistics and records
  • Issues guidelines
  • Provides advice to the Minister of Finance
  • Conducts research
  • Creates training requirements
  • Extends legal assistance to foreign jurisdictions

Combating Money Laundering and Terrorist Financing

To combat money laundering and terrorist financing, the FIU has established key obligations for supervisory authorities, including:

  • Examining and supervising reporting entities
  • Issuing instructions and guidelines
  • Ensuring that reporting entities update their AML/CFT compliance programs in line with any amendments to the law.