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Guyana’s Money Laundering Risk: A Medium High Threat
A recent report by the World Governance (WG) has identified Guyana as having a medium high risk of money laundering. The country’s overall threat and vulnerability have been rated as medium, contributing to its medium high ML risk.
Sectors at High Risk
- Real Estate Agents/Brokers/ Housing Developers: flagged as being at high risk of money laundering due to the lack of effective monitoring systems for domestic trading of wildlife and limited knowledge of law enforcement agencies in conducting parallel financial investigations.
- Money Transfer Agencies: identified as being at high risk of money laundering due to their involvement in the illegal wildlife trade and lack of effective regulation.
Sectors at Medium Risk
- Used Car Dealers/Car Parts Dealers: found to be at medium risk of money laundering due to its lack of transparency, making it susceptible to illegal activities.
- Casinos: identified as being at medium risk with inadequate monitoring systems in place to prevent illegal activities.
- Lotteries: found to be at medium risk of money laundering, with inadequate monitoring systems in place to prevent illegal activities.
Sectors at Low Risk
- Cooperatives: identified as being at low ML risk due to their transparent business practices and effective regulation.
- Notary Public/Commissioner of Oaths to Affidavits: found to be at low ML risk, with adequate regulations and oversight in place to prevent money laundering.
- Credit Unions: found to be at low ML risk, with adequate regulations and oversight in place to prevent money laundering.
Sectors at Medium Low Risk
- Insurance: found to be at medium low ML risk, with adequate regulations and oversight in place to prevent money laundering.
- Dealers in Precious and Semi-Precious Stones: identified as being at medium low ML risk due to their lack of transparency and limited regulation.
- Securities: identified as being at medium low ML risk due to its lack of transparency and limited regulation.
Terrorist Financing: A Growing Concern
The report also highlighted the growing concern of terrorist financing in Guyana, with proceeds from predicate offenses estimated to be around USD 2.2 billion.
Conclusion
Guyana’s medium high ML risk rating highlights the need for stronger regulations and oversight mechanisms to prevent money laundering and terrorist financing. The government must take immediate action to address these concerns and protect the country’s financial system from illicit activities.