Financial Crime World

GUYANA INTRODUCES STRICTER PENALTIES FOR PROLIFERATION FINANCING

The government of Guyana has introduced new penalties for individuals and entities found guilty of proliferation financing, a criminal offense that threatens global security.

What is Proliferation Financing?

Proliferation financing refers to the act of providing funds or financial services used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials. This is outlined in Section 2(1) of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Act 2009, as amended.

Penalties for Proliferation Financing

Individuals found guilty of proliferation financing can face a fine of not less than $500,000 nor more than $1,000,000 or imprisonment for at least 10 years but not exceeding 15 years. Companies convicted of the offence can be fined not less than $10 million nor more than $200 million.

Targeted Financial Sanctions

The AML/CFT Act also establishes targeted financial sanctions related to terrorism, terrorist financing and proliferation financing. These sanctions prohibit individuals and entities from:

  • Dealing directly or indirectly with funds or other assets of designated persons or entities
  • Entering into transactions with them
  • Providing financial services to them
  • Making property available for their benefit

Role of the Financial Intelligence Unit (FIU)

The FIU plays a crucial role in Guyana’s AML/CFT operational network, providing support to other competent authorities. The FIU is responsible for:

  • Requesting, receiving, analyzing and disseminating information on suspicious transactions and other intelligence reports submitted by reporting entities and other authorities

Supervisory Authorities

Supervisory authorities, including the Governor of the Bank of Guyana, the Guyana Securities Council, and the Guyana Revenue Authority, among others, are critical in ensuring compliance with AML/CFT requirements. These authorities have powers to:

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

Government’s Commitment

The government has emphasized its commitment to combating money laundering and terrorist financing, which poses a significant threat to global security. The new penalties for proliferation financing are aimed at deterring individuals and entities from engaging in this illegal activity and supporting countries’ efforts to prevent the spread of weapons of mass destruction.

“We will not tolerate any activities that threaten global security, and we will continue to work closely with international partners to combat these crimes,” said [Name], Minister of Finance. “This is a major step forward in our fight against money laundering and terrorist financing.”