Financial Crime World

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Guyana Faces High Money Laundering Threat and Vulnerability

A recent assessment has revealed that Guyana faces a high risk of money laundering due to its medium-high threat level and vulnerability.

Threat Level and Vulnerability

According to the assessment, the overall money laundering threat in Guyana is medium-high, driven by the significant estimated value of proceeds of crime generated from predicate offences committed in the country. The lack of convictions for money laundering over the years has also contributed to this high threat level.

  • Significant estimated value of proceeds of crime generated from predicate offences
  • Lack of convictions for money laundering over the years

Vulnerability of Financial System

Guyana’s financial system is vulnerable to money laundering due to a number of factors, including:

  • Inadequate legislation and regulation
  • Limited institutional expertise
  • Lack of public awareness about financial inclusion products and services

Predicate Offences

Some of the predicate offences that pose the highest money laundering threat in Guyana include:

  • Smuggling: estimated value of proceeds generated between 2016-2020 is approximately USD 2.2 billion
  • Tax evasion
  • Illicit trafficking in narcotic drugs and psychotropic substances
  • Fraud

Virtual Assets and Emerging Threats

The report also warned of emerging threats in the virtual assets sector, including:

  • Use of complex algorithms to provide value to these assets
  • Lack of regulation in this area makes Guyana vulnerable to misuse or abuse of its financial services

Recommendations

To address these risks, the assessment recommended that Guyana:

  • Strengthen its legislative and regulatory framework
  • Improve institutional expertise
  • Increase public awareness about financial inclusion products and services
  • Establish a robust system for monitoring and reporting suspicious transactions
  • Implement effective measures to prevent money laundering and terrorist financing

Conclusion

Guyana faces significant risks of money laundering due to its medium-high threat level and vulnerability. To mitigate these risks, it is essential that the country strengthens its legislative and regulatory framework, improves institutional expertise, and increases public awareness about financial inclusion products and services.