Financial Crime Trends in Guyana for 2023: Regulatory Focus Shifts Amid Evolving Risks
As financial institutions continue to grapple with the challenges of fraud and financial crime, regulators in Guyana are paying close attention to emerging trends and threats. According to a recent KPMG report, “Ten Key Regulatory Challenges of 2023,” the focus will shift towards mitigating complex and evolving risks that may threaten national security.
Emerging Risks
One area of concern is the increased risk of money laundering and terror financing posed by digital assets, including cryptocurrencies and decentralized finance (DeFi) platforms. Regulators are urging financial institutions to implement robust anti-money laundering (AML) controls and conduct thorough customer due diligence (CDD) to prevent illicit activities.
- Digital Assets: Regulators will look to combat threats and vulnerabilities posed by digital assets and strengthen financial safeguards.
- Increased Attention to AML for NFTs and DeFi: With the rapid growth of NFTs and DeFi platforms, regulators indicate there is an elevated risk of money laundering and terror financing.
Another key challenge is the growing threat of cybercrime, which is expected to continue to evolve and become more sophisticated. Financial institutions must prioritize robust cybersecurity risk management and invest in advanced technologies to detect and respond to threats.
- Cybersecurity: Financial institutions must prioritize robust cybersecurity risk management and invest in advanced technologies to detect and respond to threats.
Regulators are also paying close attention to insider corruption, fraud models, and operations, as well as consumer scams and potential compliance violations. The report highlights the importance of implementing effective risk programs that identify and mitigate fraud and scams directed at vulnerable populations, such as the elderly and servicemembers.
- Insider Corruption: Regulators will focus on preventing insider corruption and fraud through robust controls and oversight.
- Consumer Scams: Financial institutions must prioritize consumer protection by identifying and mitigating fraud and scams directed at vulnerable populations.
Regulatory Focus
In conclusion, the regulatory landscape in Guyana is shifting towards addressing complex and evolving risks that threaten national security. Financial institutions must be proactive in identifying trends, implementing robust controls, and prioritizing customer experience to stay ahead of emerging threats.
- Sanctions and Price Cap Compliance: Continued geopolitical discordance will result in continued focus on sanctions and price cap compliance.
- Strong Governance and Risk Management Frameworks: Companies must prioritize strong governance and risk management frameworks that ensure effective oversight and compliance.