Financial Crime World

Proliferation Financing Crimes on the Rise in Guyana

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The Financial Intelligence Unit (FIU) of Guyana has raised concerns about the proliferation of financial crimes in the country, particularly with regards to the financing of weapons of mass destruction.

Proliferation Financing: A Criminal Offense

Proliferation financing is a criminal offense under Guyana’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Act 2009 as amended. The act defines proliferation financing as providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, transportation, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials.

What is Proliferation Financing?

  • Providing funds or financial services to support the production, acquisition, possession, development, export, transportation, transfer, stockpiling or use of weapons of mass destruction
  • Facilitating illegal activities that could lead to the proliferation of weapons of mass destruction

Targeted Financial Sanctions

To combat proliferation financing, Guyana has implemented targeted financial sanctions against individuals and entities suspected of engaging in illegal activities. These sanctions include:

Asset Freezing

  • Freezing of assets belonging to listed persons or entities
  • Prohibition on dealing with funds or other assets belonging to listed persons or entities

Prohibitions

  • Prohibitions on dealing with funds or other assets belonging to listed persons or entities
  • Restrictions on the use of financial services by listed persons or entities

Financial Intelligence Unit (FIU)

The FIU is the central authority responsible for collecting, analyzing and disseminating information related to suspicious transactions and other intelligence reports submitted by reporting entities and other competent authorities. The unit plays a crucial role in identifying and disrupting financial crimes, including proliferation financing.

Responsibilities of the FIU

  • Collecting and analyzing suspicious transaction reports (STRs)
  • Disseminating STRs to relevant authorities
  • Providing training and guidance to reporting entities

Supervisory Authorities

Supervisory authorities have been designated under Guyana’s AML/CFT legislation to ensure compliance by reporting entities with the requirements of the act. These authorities include:

Key Obligations of Supervisory Authorities

  • Examining and supervising reporting entities
  • Issuing instructions and guidelines
  • Providing training
  • Ensuring that reporting entities update their AML/CFT Compliance Programs in keeping with any amendments to the act

Combating Proliferation Financing

The government of Guyana is taking a proactive approach to combat proliferation financing by:

Implementing Targeted Financial Sanctions

  • Freezing assets and prohibiting dealings with funds or other assets belonging to listed persons or entities

Strengthening Supervision and Oversight

  • Enhancing supervision and oversight of reporting entities
  • Conducting regular examinations and monitoring

Enhancing International Cooperation

  • Sharing intelligence and best practices with regional and international partners
  • Collaborating with international organizations to combat financial crimes

Conclusion

The proliferation of financial crimes in Guyana is a serious concern that requires immediate attention and action. It is essential for individuals and entities to be aware of their obligations under the AML/CFT legislation and to report any suspicious transactions or activities to the relevant authorities.