Financial Crime World

Guyana Introduces Tough Penalties for Proliferation Financing

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Guyana has recently introduced new penalties for proliferation financing, a criminal offense that involves providing funds or financial services to support the development of nuclear, chemical, or biological weapons.

What is Proliferation Financing?

Proliferation financing includes any act that provides funds or financial services used, in whole or in part, for the manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling, or use of such weapons. This offense is outlined in Section 2(1) of the AML/CFT Act 2009 as amended.

Penalties for Proliferation Financing

According to Section 68E(12) of the AML/CFT Act 2009 as amended:

  • Natural persons who commit this offense are liable to a fine of not less than $5 million nor more than $100 million or to imprisonment for up to seven years.
  • Bodies corporate are liable to a fine of not less than $10 million nor more than $200 million.

These penalties are aimed at preventing the proliferation of weapons of mass destruction and supporting international efforts to combat terrorism and terrorist financing.

Targeted Financial Sanctions

The AML/CFT legislation also establishes targeted financial sanctions against individuals and entities designated by the United Nations Security Council, including those involved in terrorist activities or support for such groups. These sanctions include:

  • Prohibiting persons from knowingly dealing directly or indirectly with any funds or other assets of listed individuals or entities.
  • Preventing transactions related to listed individuals or entities.
  • Disallowing the provision of financial services to listed individuals or entities.

Financial Intelligence Unit

The Financial Intelligence Unit (FIU) plays a central role in Guyana’s anti-money laundering and combating the financing of terrorism (AML/CFT) operational network. The unit is responsible for:

  • Requesting, receiving, analyzing, and disseminating information on suspicious transactions and other intelligence reports.
  • Coordinating with reporting entities and other competent authorities to share information and intelligence.

Supervisory Authorities

The AML/CFT legislation designates several supervisory authorities to ensure compliance by reporting entities with the requirements of the law. These authorities include:

  • The Governor of the Bank of Guyana
  • The Guyana Securities Council
  • The Guyana Gold Board
  • The Guyana Geology & Mines Commission
  • The Guyana Revenue Authority
  • Others

These supervisory authorities have powers and responsibilities to:

  • Examine and supervise reporting entities
  • Regulate and oversee effective compliance with the AML/CFT legislation
  • Issue instructions and guidelines
  • Provide training
  • Ensure that reporting entities are aware of their obligations under the law