Financial Crime World

Guyana’s Medium-High Money Laundering Threat and Vulnerability

A recent assessment has revealed that Guyana faces a medium-high risk of money laundering, driven by its medium-high overall threat and vulnerability.

Overview of the Threat

The country’s overall money laundering threat is considered medium to high due to the significant value of proceeds from predicate offenses. These proceeds include:

  • Smuggling
  • Tax evasion
  • Illicit trafficking in narcotic drugs and psychotropic substances
  • Fraud

Over a four-year period, these proceeds have totaled approximately USD 2.2 billion.

Vulnerability to Money Laundering

Guyana’s vulnerability to money laundering is also a concern. Many predicate offenses go uninvestigated and unpunished. Specifically:

  • The Guyana Police Force has failed to conduct parallel financial investigations alongside traditional criminal investigations into money laundering, terrorist financing, and predicate offenses.
  • The Special Organised Crime Unit (SOCU) is responsible for investigating money laundering, proceeds of crime, and terrorist financing, but its efforts have been hampered by:
    • Limited resources
    • Inadequate data collection
    • Inability to track trends in predicate offenses and prosecutions

Financial Inclusion Products and Services

Guyana’s financial inclusion products and services are also vulnerable to money laundering. Some entities lack clear transaction limits, while others fail to implement adequate customer due diligence measures.

Virtual Assets and Cryptocurrencies

The rise of virtual assets and cryptocurrencies poses new challenges for Guyana’s financial authorities. The lack of regulation in this sector has created an environment ripe for exploitation by criminals seeking to launder proceeds from illegal activities.

Recommendations for Improvement

To address these concerns, Guyana must:

  • Strengthen its anti-money laundering regulations and enforcement efforts
  • Improve data collection and analysis
  • Enhance public awareness campaigns to prevent the misuse of financial services

By taking these steps, Guyana can reduce its medium-high risk of money laundering and ensure a safer and more secure financial environment.