Financial Crime World

Guyana’s Financial Intelligence Unit Issues New Guideline to Strengthen AML/CFT Compliance for Designated Non-Financial Businesses and Professions

Overview

Guyana’s Financial Intelligence Unit (FIU) has issued a new guideline, Guideline No. 2 of 2021, to provide additional support to Designated Non-Financial Businesses or Professions (DNFBPs) in implementing measures to prevent their use for money laundering (ML) and terrorist financing (TF) activities.

Key Definitions and Terms

The new guideline defines essential terms related to ML, TF, and DNFBPs, ensuring a common understanding among relevant stakeholders. Here are some key definitions:

  • Beneficial ownership: Refers to the ownership or control of more than 25% of the total shares of a legal entity or ownership or control of a customer or person on whose behalf a transaction is being conducted.
  • Suspicious Transaction: A transaction with reasonable grounds to suspect that it is related to ML or TF offenses.

Registration and Compliance Obligations

All DNFBPs under Guyana’s Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Act are required to comply with specific obligations, including:

  1. Customer Due Diligence (CDD) measures
  2. Identification and verification of all classes of customers
  3. Maintenance of customer records
  4. Assessment, management and mitigation of ML/TF risks
  5. Submission of reports to the Financial Intelligence Unit

Risk-Based Approach and Supervision

The guideline encourages a risk-based approach, emphasizing that DNFBPs must assess the risks posed by their specific business activities and adapt their AML/CFT measures accordingly. The financial intelligence unit is tasked with examining, supervising, and enforcing compliance with AML/CFT requirements.

Guideline Structure

The Guyana AMLCFT Compliance Guideline No. 2 of 2021 covers the following topics:

  1. Contents
  2. Designated Non-Financial Businesses or Professions (DNFBPs)
  3. AMLCFT Compliance Framework
  4. Registration Procedure
  5. Risk Management System and Applying a Risk-Based Approach
  6. Appointment of a Compliance Officer
  7. Identification and Verification
  8. Record Keeping and Maintenance
  9. Reporting Procedures
  10. Monitoring Function
  11. AMLCFT Training
  12. Employee Screening
  13. Role of Supervisory Authority
  14. AML/CFT Provisions relating to Certain Professions and ML/TF Risks
  15. Money Laundering and Terrorist Financing – Red Flags
  16. Professions, Real Estate, and Other Sectors
  17. Appendices

AML/CFT Compliance for DNFBPs

1. Designated Non-Financial Businesses or Professions (DNFBPs)

  • DNFBPs refer to professions and businesses that are not normally considered financial institutions, but can still pose money laundering and terrorist financing risks.

2. AMLCFT Compliance Framework

  • The AMLCFT Compliance Framework outlines measures DNFBPs must take to prevent their use for ML and TF activities.

3. Registration Procedure

  • All DNFBPs need to register with the FIU and comply with specific registration requirements.

4. Risk Management System and Applying a Risk-Based Approach

  • DNFBPs must assess the risks posed by their business activities and adopt appropriate AML/CFT measures based on their risk level.

5. Appointment of a Compliance Officer

  • Each DNFBP must appoint a compliance officer responsible for implementing and enforcing the AML/CFT policies and procedures.

6. Identification and Verification

  • DNFBPs must verify the identity of their customers and beneficial owners.

7. Record Keeping and Maintenance

  • Proper record keeping and regular maintenance are crucial for DNFBPs to effectively manage their ML/TF risks.

8. Reporting Procedures

  • DNFBPs must submit Suspicious Transaction Reports (STRs) to the FIU when they encounter suspicious transactions.

9. Monitoring Function

  • DNFBPs must continually monitor their transactions and business relationships to detect and report any suspicious activities.

10. AMLCFT Training

  • Regular AMLCFT training for employees is necessary to ensure they have the knowledge and skills needed to effectively comply with the regulations.

11. Employee Screening

  • DNFBPs must conduct background checks on their employees to ensure they are trustworthy and meet the necessary qualifications.

12. Role of Supervisory Authority

  • The FIU is responsible for examining, supervising, and enforcing compliance with AML/CFT requirements.

13. AML/CFT Provisions relating to Certain Professions and ML/TF Risks

  • The guideline outlines specific provisions for various professions and sectors, highlighting the unique ML/TF risks they face.

14. Money Laundering and Terrorist Financing – Red Flags

  • The guideline lists red flags that may indicate ML or TF activities, helping DNFBPs identify and report suspicious transactions.

15. Professions, Real Estate, and Other Sectors

  • The guideline discusses the unique ML/TF risks faced by various professions, real estate, and other sectors.

16. Appendices

  • The document includes appendices with additional information and resources to help DNFBPs comply with the AML/CFT regulations in Guyana.

By adhering to the guidelines and regulations, these businesses and professions can significantly reduce the risk of being used for ML and TF activities and maintain their reputation in the financial community.