Financial Crime World

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Government Tightens Grip on Money Laundering with New Legislation

The government has taken a major step in the fight against money laundering by introducing new legislation aimed at freezing and forfeiting property linked to illegal activities.

Freezing Property Linked to Illegal Activities

According to the law, the competent authority can apply to a judge for an order freezing the property of a person charged or about to be charged with a money laundering offense. The court may give directions on the disposal of the property, including:

  • Determining ownership disputes
  • Administering the property during the freeze period
  • Paying debts owed by creditors
  • Providing for the subsistence of the individual and their family

Forfeiture of Property Derived from Money Laundering Offenses

The legislation also provides for the forfeiture of property derived from or connected to money laundering offenses. Upon conviction, the court may order that the property be forfeited and disposed of in accordance with directions given by the Minister. The Minister will publicly announce the directions for disposal.

Protections for Bona Fide Third Parties

In cases where some or all of the property cannot be forfeited due to an act or omission of the convicted person, the court may order:

  • The forfeiture of other property owned by the individual, equivalent in value
  • Require them to pay a fine of such value
  • Inferring that property was obtained as a result of money laundering if the value of the property increases significantly after the offense and the income of the individual cannot be reasonably accounted for through legitimate means

Protections for Bona Fide Third Parties

The legislation also provides protections for bona fide third parties who may have a legitimate interest in property, proceeds, or instrumentalities that are subject to forfeiture. These individuals can appear before the court to claim their rights and demonstrate their lack of involvement in money laundering activities.

International Cooperation

The law also promotes international cooperation by requiring courts and competent authorities to cooperate with their counterparts in other states to provide assistance in matters concerning money laundering offenses, within the limits of their respective legal systems.

Conclusion

The new legislation is seen as a significant step forward in Guyana’s efforts to combat money laundering and prevent its financial system from being used for illegal activities.