Financial Crime World

Bank of Guyana Plays Crucial Role in Shaping Financial Sector

Strengthening Oversight and Promoting Stability

Georgetown, Guyana - The Bank of Guyana has been at the forefront of shaping the country’s financial sector through a series of legislative reforms aimed at strengthening oversight and promoting stability.

Credit Reporting Act

In 2009, the Credit Reporting Act was enacted, placing the responsibility for overseeing credit reporting on the Bank. This legislation ensures that credit information is:

  • Accurate
  • Relevant
  • Fair
  • Confidential

This facilitates increased access to finance and contributes to overall financial system stability.

Licensing of Credit Bureaus

The Bank has also licensed Credit Info (Guyana) Incorporated as the sole credit bureau in Guyana, conducting supervision through:

  • On-site inspections
  • Off-site monitoring

Insurance Sector Reforms

Repeal and Replacement of Insurance Act

In 2016, the Insurance Act 2016 repealed and replaced the Insurance Act of 1998 and the Insurance (Supplementary Provisions) Act 2009. This legislation:

  • Enhances the Bank’s supervisory powers and responsibilities
  • Promotes competition in the insurance industry
  • Protects consumers through a risk-based approach to supervision

Implementation

The Act was brought into operation on April 16, 2018, with implementing regulations gazetted on April 17, 2018. The reforms also introduced a new Solvency Assessment and Management (SAM) regime to ensure financial soundness of insurers and protect policyholders.

National Payments System Act

Creating a Sound Legal Framework

In 2018, the National Payments System Act created a sound legal framework for the operation and oversight of Guyana’s payments system. This legislation:

  • Defines the scope of the payments system
  • Articulates the Bank’s role in regulating and overseeing activities related to:
    • Processing
    • Clearing
    • Settlement

The Act will be supported by implementing regulations and aims to build a robust, safe, efficient, and inclusive national payments system that meets current and future economic needs.

Deposit Insurance Act

Establishment of Deposit Insurance Scheme

The Deposit Insurance Act 2018 establishes a Deposit Insurance Scheme for the protection of depositors’ funds. This legislation:

  • Creates a Deposit Insurance Fund
  • Establishes a Deposit Insurance Corporation responsible for managing the fund and related purposes

The Bank will play a key role in the establishment and functioning of the corporation, serving as the sole subscriber to capital and vested with governance and cooperation responsibilities.

Aim

This legislation aims to foster financial stability through depositor protection and resolution financing, with implementation planned for 2019.