Georgetown :Prime Minister Samuel Hinds announced to the National Assembly today that Guyana has been officially blacklisted by the Caribbean Financial Action Task Force (CFATF) due to the country’s failure to pass the relevant legislation to combat money laundering and countering the financing of terrorism.
PM Hinds stated that at the 38th plenary meeting from November 18 to 21, CFATF identified Guyana as a jurisdiction with deficiencies in Anti Money Laundering and Countering the Financing of Terrorism and that it has not taken sufficient steps to address this.
He added that CFATF has called upon members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana.
PM Hinds added that it was further resolved that a formal letter would be sent by CFATF to Guyana advising that should the approval and implementation of the Anti Money Laundering and Countering the Financing of Terrorism (Amendment) Bill not be resolved by May 2014, Guyana will be referred by CFATF to the Financial Action Task Force (FATF) International Cooperation Review Group (ICRG).
He added that the next plenary meeting for FATF is due in February 2014 when the body can select Guyana for its own review.
“It is important to explain to members of this House and the public that the CFATF has blacklisted Guyana. The resolution of this CFATF Plenary has today provided all CFATF and FATF members with the treatiste dated to blacklist Guyana. The experience of other jurisdictions so blacklisted by CFATF or by their geographic FATF, leaves no doubt that like them, Guyana will be severely affected. This will place Guyana’s financial banking and insurance sector under severe scrutiny with serious consequences for financial transactions for consumers, businesses …and the Government’s provision of services.”
The PM reminded the House that CFATF has indicated that 98% of Guyana’s deficiencies relate to the legislative reforms already encompassed in the Amended AMLCFT Bill which was defeated in the House on November 7, 2013.
He stated that there may be worse to come. “Were Guyana not to put its house in order, according to CFATF’s recommendations by February 2014, CFATF will be unavoidably called in by the ICRG. FATF’s blacklisting structure can only be avoided by Guyana achieving 100% compliance with its recommendations. The experience of countries so affected has shown the years taken under blacklisting for the 100% compliance to be met and the blacklist to be lifted.”
