Strengthening Security Measures Against Money Laundering and Terrorism Financing in Guyana’s Financial Institutions
Guyana’s financial institutions are taking proactive steps to combat money laundering and the financing of terrorism, as mandated by the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009. This law aims to identify, trace, freeze, seize, and forfeit proceeds from serious offenses.
Responsibilities in Preventing Money Laundering and Terrorism Financing
All citizens of Guyana have a moral obligation to assist in preventing money laundering and terrorism financing. However, certain agencies and entities have specific obligations under the AML/CFT legislation. These include:
- Reporting Entities: Banks, insurance companies, and other financial institutions are required to report suspicious transactions and maintain accurate records.
- Financial Intelligence Unit (FIU): Responsible for analyzing these reports and providing intelligence to law enforcement agencies.
Supervisory Authorities
Supervisory authorities, such as the Banking Department, play a crucial role in ensuring that reporting entities comply with AML/CFT requirements. These authorities have the power to:
- Conduct examinations
- Inspect financial institutions
- Provide training programs to ensure compliance
Other Competent Authorities
Other competent authorities also have a role to play in identifying and preventing money laundering and terrorism financing, including:
- Special Organized Crime Unit (SOCU): Investigates suspected cases of money laundering and terrorism financing.
- Director of Public Prosecution (DPP): Prosecutes those found guilty of these crimes.
- Guyana Revenue Authority: Plays a role in identifying and preventing money laundering and terrorism financing through tax compliance.
- Commercial Registry: Provides information on corporate entities to assist in the fight against money laundering and terrorism financing.
- Deeds Registry: Maintains records of property transactions, which can be used to identify suspicious activities.
Consequences of Non-Compliance
Sanctions can be imposed on reporting entities that fail to comply with AML/CFT obligations. These sanctions include:
- Written warnings
- Ordering compliance
- Prohibiting convicted persons from employment
- Directing the removal of defaulting officers from the board
- Suspension or withdrawal of licenses
- Fines ranging from five to fifteen million dollars
Boosting Confidence in Guyana’s Financial System
The implementation of these security measures is expected to boost confidence in Guyana’s financial system and protect it against the threat of money laundering and terrorism financing. By taking proactive steps, Guyana’s financial institutions can demonstrate their commitment to combating these crimes and maintaining a stable and secure financial environment.