Georgetown: The Executive Board of the International Monetary Fund (IMF), in a statement released stressed the “urgent” need to address remaining gaps in the regime to combat money laundering and the financing of terrorism.
The statement said, “Directors considered that a modestly tighter stance of monetary policy and continued exchange rate flexibility would help safeguard international reserves, contain inflationary pressures, and reduce the current account deficit.”
The directors also recommended continued vigilance over the financial sector.
“In light of rapid credit growth in recent years and high loan concentration, they advised frequent on-site inspections for larger banks and a better integrated supervision of financial business groups,” the statement said.
The Anti-Money Laundering Countering of Financing of Terrorism (AML /CFT) Bill was defeated in the National Assembly earlier this month.
However, government moved to have the House’s Standing Orders suspended to facilitate the re-tabling of the Bill.
Parliament on recently approved the suspension of the Standing Orders and Attorney General Anil Nandlall requested the Bill’s passage within the next five weeks to mitigate the adverse effects of blacklisting of Guyana by the Caribbean Financial Action Task Force (CFATF) and avoid further sanctions.
The Bill was sent to Select Committee for consideration after a second reading.
Since missing the November 18 deadline, CFATF, at its plenary meeting, warned its members to “consider implementing counter measures to their financial systems from the ongoing money laundering and terrorist financing risks” emanating from Guyana.
The French-based Financial Action Task Force (FATF) is expected to hold a review in February, in which Guyana could be included.
CFATF itself is expected to review Guyana’s position at its next meeting in May, 2014. If Guyana is unable to meet that deadline, the body is expected to hand Guyana over to the Financial Action Task Force for the International Cooperation Review Group’s (ICRG) evaluation to begin.
IMF’s pronouncement on the matter followed the end of a consultation with Guyana on December 9.
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