Emerging Trends in Financial Crime Threaten Guyana’s Economy: Government Takes Proactive Measures
Guyana’s government has approved a National Policy and Strategy to combat money laundering, terrorism financing, and the financing of proliferation. This move comes as the country prepares for its 4th Round of Mutual Evaluation by the Caribbean Financial Action Task Force (CFATF).
Five-Year Plan to Combat Money Laundering
The five-year plan aims to prevent, detect, and suppress money laundering and related offenses in line with international standards. The policy covers various government agencies and private sector entities, including commercial banks, insurance companies, and security companies.
Identifying Risks
According to Guyana’s Second National Risk Assessment Report, the country’s money laundering risk is “Medium High,” making it a transit country for cocaine destined to North America, Europe, West Africa, and the Caribbean. The report highlights the need to address these risks to prevent negative impacts on the economy.
Potential Negative Impacts
The government has highlighted the potential negative impact of money laundering and related crimes on the economy, stating that these offenses directly and indirectly contribute to:
- Erosion of the rule of law
- Political instability
- Corruption
- Weakening of the financial sector
- Loss of confidence in the country’s financial system and institutions
Implementing the National Policy and Strategy
The Attorney General and Minister of Legal Affairs, Anil Nandlall, anticipates that the implementation of the National Policy and Strategy will create a robust and resilient protective network, insulating Guyana and its financial system from being contaminated by the proceeds of crime. The government is also expected to introduce amendments to the Anti-Money Laundering and Countering the Financing of Terrorism Act to address gaps identified by the Regional Security System (RSS).
Proactive Approach
Guyana’s government has taken a proactive approach in addressing emerging trends in financial crime, building on its previous success in being removed from FATF’s Grey List after making significant changes to its legislative framework. The country is expected to introduce targeted actions aimed at creating a robust and resilient protective network, ensuring the integrity of its financial system.
Next Steps
The government will continue to work towards implementing the National Policy and Strategy, addressing emerging trends in financial crime, and strengthening its financial system. By doing so, Guyana aims to maintain its reputation as a responsible and transparent country, while protecting its economy from the negative impacts of money laundering and related crimes.