Financial Crime World

Guyana’s Financial Sector Under Threat: Expert Weighs In

As Guyana emerges as a major player in the global oil and gas industry, concerns are mounting about the country’s financial sector vulnerability to money laundering (ML) and terrorist financing (TF). A recent report by the National Risk Assessment (NRA) has highlighted several emerging threats that require urgent attention.

Financial Sector Vulnerabilities

According to Alicia Williams, NRA Coordinator, most financial inclusion services and products in Guyana are offered by reporting entities regulated for Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance. However:

  • Some entities lack clear transaction limits, rendering them vulnerable to ML.
  • There is no definition for financial inclusion in local legislation.
  • Public awareness about these products is limited.

Virtual Assets Sector Unregulated

The report also warns that the virtual assets sector remains unregulated in Guyana, despite its increasing popularity globally. This lack of regulation has created an environment where unsuspecting individuals can invest in Ponzi schemes and other scams.

Recommendations for Mitigation

To mitigate these risks, the NRA Working Group made over 100 recommendations, including:

  • Establishing a national strategy for combating ML/TF informed by identified risks.
  • Increasing human resource capacity at financial intelligence units (FIUs), supervisory bodies, and law enforcement agencies.
  • Regulating and supervising designated non-financial businesses and professions (DNFBPs) to prevent AML/CFT non-compliance.

Intensified Efforts Needed

The report also highlights the need for intensified efforts to:

  • Detect and prosecute businesses operating without licenses.
  • Establish a counter-terrorism department with adequate resources and training.

Expert Analysis

In an exclusive interview, Alicia Williams emphasized the importance of addressing these emerging threats. “Guyana must be vigilant in guarding against the misuse or abuse of its financial services,” she warned. “Regulatory bodies must work together to ensure that reporting entities are compliant with AML/CFT obligations and that public awareness about financial inclusion products is increased.”

Accessing the Full Report

The full report and action plan can be made available upon request from the Hon. Attorney General & Minister of Legal Affairs and Chairman, of the AML/CTF/PE National Coordination Committee.

Conclusion

As Guyana continues to attract international investment in its oil and gas sector, it is essential that regulatory bodies prioritize these recommendations to ensure the country’s financial sector remains robust and secure.