Guyana on Brink of International Money Laundering Blacklist as Government Fails to Pass Vital Legislation

Guyana is facing a significant threat to its economic stability and reputation due to the government’s failure to pass crucial anti-money laundering legislation. The Financial Action Task Force (FATF), a global financial crimes watchdog, is currently reviewing Guyana’s situation and is expected to make a decision soon.

A Risk of Being Placed on an International Blacklist

The Caribbean Financial Action Task Force (CFATF) has already blacklisted Guyana due to its inadequate anti-money laundering laws. If the FATF also places Guyana on its blacklist, the country could face severe economic sanctions and other consequences. This would have a significant impact on Guyana’s economy, which is heavily dependent on natural resources.

Inadequate Anti-Money Laundering Laws

Guyana has had basic anti-money laundering legislation in place since 2009, but lacks the necessary implementing legislation to effectively combat money laundering. The country’s financial institutions are not required to report suspicious transactions, and as of June 10, no financial crimes have been investigated.

Failure to Pass Legislation Due to Political Obstacles

The CFATF first identified Guyana’s weaknesses in its anti-money laundering laws in 2011 and developed an action plan with the government to address these issues. However, opposition parties in the National Assembly have blocked the passage of more comprehensive legislation, citing political concessions as a condition for their support.

Serious Implications for the Economy

The failure to pass anti-money laundering legislation has serious implications for Guyana’s economy. If blacklisted by the FATF, international banks may be forced to sever ties with Guyanese financial institutions, and companies may choose to do business elsewhere.

Organized Crime on the Rise

Guyana’s lack of action against money laundering comes as organized crime in the country is increasing, fueled by drug trafficking and corruption. A recent report by InSight Crime revealed that a billion-dollar drug trafficking network involving Italy’s ‘Ndrangheta mafia and a Mexican criminal group was dismantled earlier this year, with ties to Guyana.

Expert Warning: Weak Criminal Justice System Facilitates Money Laundering

Experts warn that Guyana’s weak criminal justice system and role in the drug trade are facilitating money laundering. If blacklisted by the FATF, the country could face economic pressure to reform its laws and combat financial crimes.

A Vulnerable Financial Sector

Guyana’s financial sector remains vulnerable to money laundering, with little prospect of change in sight. The country’s government has shown no indication that it will take action to address these issues, leaving it at risk of being relegated to the international pariah list.