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Guyana’s Virtual Asset/Virtual Asset Service Provider (VA/VASP) Risk Assessment: A Media Update
In a move to combat money laundering and terrorist financing, the Government of Guyana has conducted a comprehensive risk assessment on its Virtual Asset (VA) and Virtual Asset Service Provider (VASP) ecosystem. The assessment aims to identify, assess, and understand the risks associated with VA/ VASPs in the country.
Assessment Highlights
The report highlights 27 VASP channels, including wallet providers, exchanges, brokers, investment providers, and more. These channels interact with Traditional Obliged Entities (TOEs) across various sectors, as well as the informal sector, creating potential vulnerabilities for money laundering and terrorist financing.
Methodology and Risk Assessment Tool
To conduct the assessment, Guyana adopted the World Bank’s methodology and risk assessment tool. A Risk Assessment Working Group was established, comprising representatives from relevant authorities, including the Bank of Guyana, Attorney General’s Chambers, Gaming Authority, and others.
Consultation with Private Sector
The group consulted with the private sector, including commercial banks, trust and securities companies, and a payment service provider, to gather valuable data, trends, and reflections. The assessment tool evaluated the ML/TF threats and vulnerabilities of VA/ VASPs through a sectoral approach and reached a residual risk rating after factoring in mitigating measures.
Report Findings
The report provides a detailed insight into the nature of interactions between TOEs and VA/ VASPs, as well as between the informal sector and VA/ VASPs. It also proposes additional mitigating measures to be implemented at national and sectoral levels.
Here are some key findings from the assessment:
- The use of virtual assets for fund-raises purposes is a significant concern
- The lack of transparency in VASP operations poses a risk to the financial system
- Insufficient AML/ CFT controls are present in some VA/ VASPs
Government Response
The government of Guyana has vowed to take action to address these concerns and ensure the integrity of its financial system. The report’s findings will inform authorities on the prioritization and allocation of resources, as well as actions to be taken at national and sectoral levels.
In a statement, the Minister of Finance said: “We are committed to ensuring that our country remains a safe and attractive destination for investment and trade. This risk assessment is an important step towards achieving this goal.”
Full Report Available
The full report can be accessed on the government’s website.