Financial Crime World

Here is the converted article in Markdown format:

Guyana’s Financial Sector Under Scrutiny: Risk Assessment Reveals Medium-High ML Risk

A comprehensive risk assessment by [Name] has revealed that Guyana’s financial sector is at medium-high risk of money laundering (ML) and terrorist financing (TF). The country’s TF risk was rated as medium, with factors such as:

  • Inadequate national strategic framework
  • Limited cooperation among agencies
  • Lack of adequately resourced units

contributing to this rating.

Money Laundering Risk Assessment

The ML risk assessment found that the overall ML threat in Guyana is medium-high due to significant estimated value of proceeds from predicate offenses committed in the country. Despite numerous investigations and charges, there have been no successful parallel financial investigations or ML prosecutions over the years.

Sectors at Higher Risk of Money Laundering

Several sectors were identified as posing a higher risk of ML, including:

  • Cooperatives
  • Pawnbrokers/Money lenders
  • Insurance companies
  • Dealers in precious and semi-precious stones
  • Notary public/Commissioner of oaths to affidavits

Other sectors with medium-low ML risk include:

  • Used car dealers
  • Car parts dealers
  • Money transfer agencies
  • Lotteries

Virtual Assets Sector Unregulated

The report noted that Guyana’s financial inclusion products are vulnerable due to:

  • Lack of clear transaction limits
  • Inadequate regulation
  • Limited public awareness

Furthermore, the virtual assets sector remains unregulated in Guyana, posing a significant threat to the country’s financial stability.

Overall Money Laundering Risk Assessment

The overall money laundering risk in Guyana was assessed as medium-high. The report highlights the need for:

  • Strengthened regulatory frameworks
  • Enhanced cooperation among agencies
  • Increased institutional expertise to combat ML and TF

Recommendations

To mitigate these risks, we recommend:

  1. Strengthening the national strategic framework for countering TF.
  2. Enhancing cooperation among key agencies responsible for analyzing, investigating, and prosecuting ML and TF cases.
  3. Increasing institutional expertise and experience to regulate, monitor, and supervise international oil and gas companies operating in Guyana.
  4. Implementing clear guidelines for simplified CDD for financial inclusion products/services.
  5. Regulating the virtual assets sector to prevent its misuse or abuse.

Conclusion

The risk assessment underscores the need for Guyana’s financial sector to be vigilant against ML and TF threats. The country must prioritize:

  • Strengthening regulatory frameworks
  • Enhancing cooperation among agencies
  • Increasing institutional expertise

to mitigate these risks and protect its financial stability.