Guyana’s Financial Sector Under Threat: Report Highlights ML Risks

A recent report by the [WG] has painted a worrying picture of Guyana’s financial sector, highlighting medium to high risks of money laundering (ML) and terrorism financing (TF).

Sectoral Risk Ratings

The report assigns risk ratings to various sectors in Guyana’s financial system. These ratings are as follows:

• Medium Low: cooperatives, pawnbrokers, insurance companies, and securities dealers
• Low: credit unions, casinos, and betting shops

National TF Risk Rating

Guyana’s overall terrorism financing (TF) risk rating was assessed as medium due to the following reasons:

• Absence of a national strategic framework for countering TF
• Limited cooperation among key agencies
• Inadequate resources to combat TF

Proliferation Financing Risk

The report highlights that Guyana lacks an effective legal framework to combat proliferation financing, with relevant agencies lacking knowledge and skills to effectively combat this threat.

ML Risks Associated with Illegal Wildlife Trade and Oil and Gas Sector

The illegal wildlife trade in Guyana was assessed as posing a medium ML risk due to:

• Ineffective monitoring systems
• Lack of knowledge among law enforcement agencies

The oil and gas sector was also deemed to pose a medium ML threat due to:

• Outdated legislation
• Limited institutional expertise

Financial Inclusion Products Vulnerability

While most financial inclusion services/products are offered by regulated entities, some do not have clear transaction limits, rendering them vulnerable to ML. Additionally:

• There is no definition for financial inclusion in local legislation
• Public awareness of these products is limited

Emerging Threats

The report warns that new technologies, such as virtual assets, may provide new avenues for ML and TF. Guyana’s lack of regulation in this sector makes it vulnerable to exploitation by criminals.

Risk Assessment Findings

The overall money laundering risk in Guyana was assessed as medium high due to:

• Medium-high threat
• Vulnerability

The report identifies smuggling, tax evasion, illicit trafficking in narcotic drugs and psychotropic substances, and fraud as predicate offences that pose a high ML threat.

Conclusion

In light of these findings, the government must take immediate action to strengthen its financial sector regulations, enhance cooperation among law enforcement agencies, and increase public awareness of ML risks. Failure to do so may have serious consequences for Guyana’s financial stability and integrity.