Guyana’s Failure to Pass Anti-Money Laundering Laws Raises Concerns Worldwide

The Caribbean Community Secretariat Expresses Alarm

The Caribbean Community Secretariat has expressed alarm at Guyana’s inability to pass its Anti-Money Laundering and Countering the Financing of Terrorism Act. This measure has been called for by the Secretary General of the Organization of American States.

Failure to Comply with International Standards

Guyana has been blacklisted by the Caribbean Financial Action Task Force (CFATF) due to its failure to comply with anti-money laundering and counter-terrorism financing rules.

Consequences of Inaction

The consequences of Guyana’s inaction are severe:

• The country’s financial services industry may be crippled if international banks terminate their relationships with local counterparts due to non-compliance with AML/CFT rules.
• This could lead to economic devastation, particularly for a country whose economy is largely dependent on exporting natural resources.

Regional and Global Implications

Experts warn that the failure of Guyana’s AML/CFT legislation will not only harm its own economy but also undermine regional efforts to combat money laundering and terrorist financing:

• “The implications for Guyana are grave,” said Earl Jarrett, General Manager of Jamaica National Building Society. “If we do not pass this law, we risk being isolated from the international community and facing severe economic consequences.”
• Jan Smith, director for Latin America at Edgar, Dunn and Co., added that the issue is not just a regional problem but a global one: “A failure of regional anti-money laundering efforts would be precisely the opposite scenario: to not have any legal recourse and tolerate the high risk of transacting with Guyana.”

CFATF’s Warning

The CFATF has given Guyana until May to implement an action plan aimed at addressing its AML/CFT deficiencies. Failure to do so will result in further sanctions, which could devastate the country’s financial services industry.

Urgent Action Required

In a statement, the Caribbean Community Secretariat urged Guyana to take immediate action to pass the AML/CFT legislation and address its AML/CFT deficiencies:

• “We cannot afford to delay any longer,” said a spokesperson for the organization. “The consequences of inaction will be severe and far-reaching.”