Georgetown: The US Department of State has pointed out that despite legislation in place to enable a more effective response to the threat of money laundering activities, the Government of Guyana never prosecuted anyone.
This was mentioned in the United States’ International Narcotics Control Strategy Report (INCSR), which was presented to Congress on Wednesday.
The 2015 report contained a comprehensive assessment of the efforts of foreign Governments to reduce illicit narcotics production, trafficking and use in keeping with their international obligations under United Nations treaties, while also presenting information on Governments’ efforts to counter money laundering and terrorist financing.
According to the report, even with the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act of 2009 in force, no prosecutions were done under the laws.
Government sought to amend the Act in 2012 but the Bill failed to get the approval of the Parliamentary Opposition. This resulted in a Parliamentary Special Select Committee being established but the parties still could not come to a consensus despite leave granted by international oversight bodies including the Caribbean Financial Action Task Force (CFATF) and the Financial Action Task Force (FATF).
The report detailed “Guyanese authorities have pledged to increase efforts to comply with international anti-money laundering standards and have presented amendments in Parliament to improve existing legislation. The United States supports the Government of Guyana’s efforts in this area and has offered technical assistance”.
In addition, the US Department of State highlighted that Government has also sought to established a Special Organized Crime Unit (SOCU) in June last year to investigate suspected money laundering crimes and prosecute persons suspected of terrorism and financial offences. The unit has been partially staffed and has begun initial training.
Furthermore, the report outlined that despite weaknesses in the system the Guyana Government does not encourage or facilitate the laundering of proceeds from illegal drug transactions. It also mentioned that Guyana is a party to the Inter-American Convention against Corruption, yet it has not fully implemented the provisions such as the seizure of property obtained through corruption.
“Efforts to increase law enforcement capabilities, protect borders and ports, strengthen workforce development, and promote anti- money laundering effectiveness directly address priority concerns shared by Guyana and the United States,” the US Department maintained. The US added that it is looking forward to tangible progress on investigations, prosecutions, extraditions, security sector capacity enhancement, the engagement of at-risk communities, and enforcement of laws against money laundering and financial crimes.
In May 2014, CFATF identified Guyana as a “money laundering and terrorist financing” risk to the international financial system because of the country’s failure to amend its Anti-Money Laundering laws. At present, Guyana is under targeted review by the FATF.
At the October 2014 plenary, Guyana committed to undertaking a series of measures that deals specifically with the non-legislative aspects of compliance. CFATF has presented a report on Guyana’s implementation of the action plan to FATF at February 2015 plenary in Paris.
In the report, the American Areas Review Group, which was overseeing Guyana’s performance of its action plan, had stated that the country was successful in completing the action due by February. Guyana now has to ensure that it implements and complete the measures of the entire targeted review before the May 2015 plenary.
Following this, the country will face FATF in September this year and will have to show that it has enacted FAFT compliant anti-money laundering legislation.
