Financial Crime World

Guyana Faces High Risk of Money Laundering and Terrorism Financing

A recent assessment by a watchdog group has revealed that Guyana is facing a high risk of money laundering and terrorism financing. The country’s overall money laundering risk was assessed as medium-high, with both the threat and vulnerability levels classified as medium-high.

Contributing Factors

  • Significant estimated value of proceeds from predicate offences committed in Guyana
  • Lack of convictions for money laundering over the years
  • Vulnerability of financial inclusion products and services to exploitation by criminals
  • Limited public awareness about these products

Emerging Threats

  • Increasing use of virtual assets for payments and transactions, providing new avenues for money launderers and terrorists to exploit Guyana’s financial system.

Predicate Offences Generate Billions in Illicit Proceeds

The assessment revealed that predicate offences such as:

  • Smuggling: generated an estimated USD 2.2 billion between 2016 and 2020
  • Tax evasion: generated an estimated USD 19.5 million between 2016 and 2020
  • Illicit trafficking in narcotic drugs and psychotropic substances: generated an estimated USD 13.4 million between 2016 and 2020
  • Fraud: generated an estimated USD 8.4 million between 2016 and 2020

Effective Financial Investigation and Prosecution

  • The assessment highlighted the importance of effective financial investigation and prosecution to combat money laundering.
  • However, it noted that the country’s financial intelligence unit, the Special Organised Crime Unit (SOCU), is still developing its capabilities in this area.

Guyana Must Take Action to Mitigate Risks

The watchdog group has called on Guyana to take urgent action to mitigate these risks and prevent the misuse of its financial system. This includes:

  • Strengthening anti-money laundering regulations
  • Improving financial intelligence gathering and sharing
  • Increasing public awareness about the dangers of money laundering and terrorism financing

Capacity Building for Financial Crime Investigation and Prosecution

  • The country must also focus on developing its capacity to investigate and prosecute financial crimes effectively, including through:
    • Training and capacity building programs for law enforcement agencies and prosecutors.

By taking these steps, Guyana can reduce the risk of money laundering and terrorism financing and protect its financial system from exploitation by criminals.