Guyana Financial Institutions Face Compliance Issues, Caribbean Task Force Warns
A major compliance issue has been identified in Guyana by the Caribbean Financial Action Task Force (CFATF), a regional organization responsible for combating money laundering and terrorist financing. The CFATF is urging its member countries to implement further countermeasures to protect their financial systems from ongoing risks emanating from Guyana.
CFATF Identifies Key Areas of Concern
The CFATF has recognized Guyana as a jurisdiction with significant Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) deficiencies. The organization’s recent statement highlighted the country’s failure to make significant progress in addressing these deficiencies, despite being given an Action Plan to rectify its AML/CFT regime.
The key areas where Guyana needs to improve its compliance include:
- Fully criminalizing money laundering and terrorist financing offenses
- Strengthening requirements for suspicious transaction reporting
- Enhancing international cooperation
- Improving the freezing and confiscation of terrorist assets
Belize Makes Significant Progress
In a related development, Belize has been recognized by the CFATF as having made significant progress in addressing its AML/CFT deficiencies. The country had been required to implement several outstanding issues within its Action Plan, including:
- Addressing customer due diligence requirements
- Implementing its CFT framework
- Extending its AML/CFT framework to designated non-financial businesses and professions (DNFBPs)
- Prohibiting dealings with shell banks
CFATF Refers Guyana to FATF
The CFATF has referred Guyana to the Financial Action Task Force (FATF), which is responsible for setting international standards for combating money laundering and terrorist financing. The organization’s call for further countermeasures against Guyana follows a recent public statement recommending that member countries consider implementing enhanced due diligence measures, introducing enhanced reporting mechanisms or systematic reporting of financial transactions, refusing the establishment of subsidiaries or branches in the country, or limiting business relationships or financial transactions with identified entities.
Immediate Action Required
The CFATF has urged its member countries to take immediate action to protect their financial systems from ongoing risks emanating from Guyana. The organization has also called on Guyana to work closely with it to address its AML/CFT deficiencies and implement the necessary reforms.
Statement from the CFATF
“The implementation of effective AML/CFT measures is essential for protecting the international financial system from money laundering and terrorist financing risks,” said a spokesperson for the CFATF. “The CFATF will continue to monitor Guyana’s progress in addressing its AML/CFT deficiencies and will work closely with the country to ensure that it implements the necessary reforms.”
Full Text of the CFATF Statement
The full text of the CFATF statement is available on the organization’s website at www.cfatf-gafic.org.