Financial Crime World

Guyana’s Financial Compliance Regulations: Mandatory Steps for Businesses to Avoid Sanctions

In the dynamic world of finance, adhering to regulatory requirements is a non-negotiable aspect for businesses operating in Guyana. The Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Act lays out the following essential statutory obligations for businesses to follow and avoid potential sanctions.

1. Registration with the Financial Intelligence Unit (FIU)

To comply with Guyana’s financial regulations, businesses must register with the FIU:

  • Submit a completed registration form, along with essential supporting documents.
  • These documents include a business registration/Articles of Incorporation, a license issued by the Guyana Revenue Authority (GRA), owner identification, recent financial statements, and other documents as specified on the form.
  • Register directly at the FIU, located at Lot 49 Main and Urquhart Streets, Georgetown (Ministry of Finance Compound).
  • Upon completion of the registration process, the GRA will be informed.

2. Appointment of a Compliance Officer

Designating a compliance officer plays a vital role in ensuring your reporting entity adheres to the AML/CFT Act’s requirements. This individual will oversee your organization’s compliance efforts.

3. Customer Due Diligence (CDD) and Enhanced Customer Due Diligence (ECDD)

Proper CDD and ECDD measures are essential for identifying and verifying the identities of your customers to maintain AML/CFT compliance.

4. Policy Manual

Creating a policy manual is necessary for maintaining reporting, record-keeping, and client identification requirements. The Policy Manual – Guidance Notes No. 1 of 2017, provides essential information and guidelines to help your business remain compliant with these regulations.

5. Record Keeping

Maintain all customer records related to transactions for at least seven years to provide adequate evidence to regulators should a request for documentation arise.

6. Regular Employee Training

Frequent AML/CFT training for staff members keeps everyone updated with new regulations and obligations. Informed staff will enable your business to maintain an effective anti-money laundering and countering the financing of terrorism program.

7. Reporting to the FIU

Submit monthly Threshold Transaction Reports (TTRs), quarterly Terrorist Property Reports (TPRs), and Suspicious Transaction Reports (STRs) to the FIU to allow regulatory authorities to monitor financial activities and mitigate potential threats to the financial system.

8. Audit Function

Establish and maintain an independent audit function to test your AML/CFT procedures and systems, ensuring ongoing compliance with Guyana’s financial regulations.

Failure to comply with these regulations may result in sanctions as outlined in Section 23 (1) (e) of the AML/CFT Act. Thus, it’s crucial that you take all necessary steps to ensure full compliance and protect your business as well as Guyana’s financial sector as a whole.