Here is the converted article in Markdown format:
Guyana’s Money Laundering Threat Rises to Medium High Level
Georgetown, Guyana - A recent assessment by a leading financial institution has revealed that Guyana’s money laundering threat has escalated to a medium high level. This alarming rise is attributed to the country’s growing vulnerability to criminal activities and a lack of convictions for money laundering over the years.
Contributing Factors
According to the assessment, the estimated value of proceeds from predicate offenses committed in Guyana is substantial, with smuggling, tax evasion, illicit trafficking in narcotic drugs and psychotropic substances, and fraud posing the highest threat. The estimated value of these illegal proceeds ranges from USD 2.2 billion to USD 19.5 million.
The report also highlighted the country’s inadequate financial regulations, lack of transparency, and limited institutional expertise as contributing factors to its increased vulnerability to money laundering.
Emerging Threats
The assessment identified emerging threats in the country’s financial landscape, including the growing use of virtual assets and the lack of regulation in this sector. The report warned that this could provide new avenues for criminals to launder money and suggested that Guyana must be vigilant in guarding against these risks.
Response from Local Authorities
In response to the findings, local authorities have pledged to increase their efforts to combat money laundering and improve financial regulations. However, experts warn that more needs to be done to address the root causes of the problem and ensure that the country’s financial system is secure and transparent.
Predicate Offenses that Generate Proceeds of Crime
The Anti-Money Laundering and Countering the Financing of Terrorism Act lists 20 serious offenses as predicate offenses for money laundering. These include:
- Smuggling, including gold smuggling
- Tax evasion
- Illicit trafficking in narcotic drugs and psychotropic substances
- Fraud
According to the assessment, the estimated value of proceeds generated from these offenses for the period 2016-2020 is approximately:
- USD 2.2 billion (smuggling)
- USD 19.5 million (tax evasion)
- USD 13.4 million (illicit trafficking in narcotic drugs and psychotropic substances)
- USD 8.4 million (fraud)
Conclusion
Guyana’s money laundering threat has risen to a medium high level due to its growing vulnerability to criminal activities and lack of convictions for money laundering over the years. The country must take immediate action to address these risks and ensure that its financial system is secure and transparent.