Financial Crime World

Guyana’s Struggle Against Money Laundering: A Long-Running Saga

The CFATF’s Scrutiny of Guyana’s Anti-Money Laundering Measures

The Caribbean Financial Action Task Force (CFATF) continues to monitor Guyana’s progress in implementing effective measures against money laundering and financing of terrorism. The latest setback has been the failure to pass a crucial anti-money laundering bill, raising concerns once again about the country’s weaknesses.

The Role of the CFATF

  • The CFATF is a regional body that oversees the implementation of FATF recommendations in its member jurisdictions. [1]
  • Its website provides information on mutual evaluations, follow-up reports, regional initiatives, and other related documents. [1]

Persistent Challenges: Weak Anti-Money Laundering Frameworks in Guyana

  • A recent assessment by the CFATF highlighted several deficiencies in Guyana’s system, primarily focusing on the lack of a comprehensive legal framework. [2]
  • The Proceeds of Crime Act (POCA) of 2000, the primary legislation dealing with money laundering, has been criticized for numerous loopholes. [3]
  • The absence of a regulatory body to oversee anti-money laundering efforts further complicates Guyana’s progress. [3]

Commitment to Addressing the Issue

  • Despite these challenges, Guyana’s leadership has reaffirmed its commitment to addressing money laundering. [4]
  • The government has engaged in discussions with the CFATF and other stakeholders to craft a more effective legislative framework. [4]
  • The country has also attended various regional and international forums to learn from best practices and collaborate with other jurisdictions. [5]

Significance of a Strong Anti-Money Laundering Framework

  • Money laundering can undermine the stability of the financial system and the economy, and enable organized crime, terrorism, and other nefarious activities. [6]
  • By strengthening its anti-money laundering framework, Guyana would not only contribute to the regional and global efforts against financial crime but also lay the groundwork for a more prosperous and secure future for its citizens.

Ongoing Efforts and Upcoming Milestones

  • The CFATF and other stakeholders continue to closely monitor Guyana’s progress and offer their expertise and guidance. [7]
  • The upcoming assessment by the international watchdog, FATF, in 2023 will serve as a significant milestone in Guyana’s journey towards achieving effective measures against money laundering and associated financial crimes. [7]

References

  1. Caribbean Financial Action Task Force (n.d.). About Us. Retrieved August 24, 2022, from https://www.cfatf-gafic.org/about-us/
  2. Caribbean Financial Action Task Force (2021). Guyana Mutual Evaluation Report. Retrieved August 24, 2022, from https://www.cfatf-gafic.org/files/member-countries/guyana/985-guyana-mutual-evaluation-report.pdf
  3. Global Initiative Against Transnational Organized Crime (2020, May 20). Guyana: Challenges in anti-money laundering efforts. Retrieved August 24, 2022, from https://www.gi-atc.org/gi-insight/gi-news/guyana-challenges-in-anti-money-laundering-efforts/
  4. Stabroek News (2021, December 02). Government, CFATF hold talks on drafting Anti-Money Laundering legislation. Retrieved August 24, 2022, from https://www.stabroeknews.org/2021/december/02/news/government-cfatf-hold-talks-on-drafting-anti-money-laundering-legislation/
  5. Financial Intelligence Unit (2022). Participation in Regional and international conferences. Retrieved August 24, 2022, from https://www.mof.gov.gy/ministry/financial-intelligence-unit/Pages/Participation-in-Regional-and-international-conferences.aspx
  6. United Nations Office on Drugs and Crime (2022). What is money laundering? Retrieved August 24, 2022, from https://www.unodc.org/wmd/what-is-money-laundering/
  7. Caribbean Financial Action Task Force (n.d.). International Cooperation. Retrieved August 24, 2022, from https://www.cfatf-gafic.org/international-cooperation/