Financial Crime World

Accurate Reporting Mechanism Crucial for Financial Stability

In Guyana, a robust mechanism for reporting credit information is essential for facilitating increased access to finance and contributing to the overall stability of the financial system. This was underscored by the Bank’s licensing of Credit Info (Guyana) Incorporated as the sole credit bureau in Guyana in 2013.

The Importance of Accurate Reporting

  • Mandatory credit reporting prior to granting or renewing credit facilities
  • Sharing of credit information between providers and the credit bureau
  • Obtaining consumer consent before releasing personal data

The Credit Reporting Act has undergone several amendments since its inception, with the most recent amendment in 2016 aimed at improving the efficiency of the system.

Strengthened Insurance Regulation

The Insurance Act 2016 has also been amended to enhance the supervisory powers and responsibilities of the Bank, promote competition in the insurance industry, and protect consumers. The Act introduces:

  • A risk-based approach to supervision
  • A new Solvency assessment and Management (SAM) regime
  • Provisions for insurance group supervision

National Payments System Act 2018

The National Payments System Act 2018 has created a sound legal framework for the operation and oversight of payments in Guyana, facilitating the efficient modernization of the system. The Act defines:

  • The scope of the payments system
  • The role and functions of the Bank in regulation and oversight

Deposit Insurance Scheme Established

The Deposit Insurance Act 2018 has established a Deposit Insurance Scheme to protect depositors’ funds, comprising:

  • A Deposit Insurance Fund
  • A Deposit Insurance Corporation responsible for managing the Fund

The Bank will play an important role in the establishment and functioning of the corporation, with the Governor serving as Chairman of the Board.

Conclusion

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These legislative reforms are critical for ensuring the stability and efficiency of Guyana’s financial system, and their implementation is expected to have a positive impact on access to finance and economic growth.