Guyana Faces High Money Laundering Threat
A Medium-High Level of Risk Revealed
A recent assessment by a financial watchdog group has revealed that Guyana is facing a high level of money laundering threat. The country’s overall money laundering risk was assessed as medium-high, due to its medium-high level of threat and vulnerability.
Estimated Value of Proceeds from Predicate Offenses
The assessment found that the estimated value of proceeds from predicate offenses committed in Guyana over the past four years was approximately USD 2.2 billion. The most common predicate offenses that pose a high money laundering threat are:
- Smuggling, including gold smuggling
- Tax evasion
- Illicit trafficking in narcotic drugs and psychotropic substances
- Fraud
Investigations and Prosecutions
The Special Organised Crime Unit (SOCU) is responsible for conducting investigations into money laundering, proceeds of crime, and terrorist financing. However, the assessment noted that there were numerous investigations and charges over the past four years, but none resulted in parallel money laundering investigations or prosecutions.
Financial Inclusion Products Vulnerability
Most financial inclusion services and products available in Guyana are offered by reporting entities that are regulated for anti-money laundering and combating the financing of terrorism (AML/CFT) compliance. However, some entities do not have clear transaction limits, which could render them vulnerable to money laundering. There is no definition for financial inclusion in local legislation, and there are limited public awareness campaigns related to financial inclusion products and services.
Emerging Threats
The report also highlighted emerging threats in the financial sector, including the use of virtual assets for payments and transactions. The country’s lack of regulation in this area may provide opportunities for criminals to launder money through these channels.
Recommendations
To address these risks, the assessment recommends that Guyana:
- Strengthen its anti-money laundering regime by improving regulations and enforcement mechanisms
- Increase public awareness campaigns about financial inclusion products and services
- Implement stricter regulations on virtual assets
Conclusion
Overall, the report highlights the need for Guyana to take a more proactive approach in combating money laundering and terrorist financing. By strengthening its regulatory framework and increasing transparency and accountability, the country can reduce the risk of financial crimes and protect its financial system.