Guyana still mulls offshore financial centre - Jagdeo

Guyana still mulls offshore financial centre – Jagdeo

Apr 17, 2009 News

Head of State Bharrat Jagdeo has indicated that Guyana is still contemplating offshore banking.
The President in his press briefing on Thursday last said that this was the reason that the Money Laundering and Anti Terrorism Bill has taken a little longer than anticipated.
“We had to make it compatible with being fully transparent and not being a tax jurisdiction where people can hide their money,” said Jagdeo.
The government, ever since the announcement of the idea of offshore banking in February 2008, has sought the support and input of the Guyana Association of Bankers (GAB), and has publicly stated that it intends to undertake an assessment of the institutional arrangements and legislation that would need to be in place in order for Guyana to serve as an Offshore Financial Centre (OFC).
A review of the experience of OFCs in the Caribbean and the relevant legislation in place in these jurisdictions would also be necessary, Finance Minister Dr Ashni Singh had said. It was pointed out that in order for the assessment to be carried out effectively, collaboration between multiple government agencies, the Bank of Guyana, the Financial Intelligence Unit and the Guyana Office for Investment as well as the close involvement of key stakeholders in the private sector, is required.
In this regard, Singh requested the support and input of the GAB, whose members possess invaluable technical expertise as well as experience about other Caricom jurisdictions that could be used as a model for Guyana.
OFCs exist to provide financial services such as banking, insurance and asset management to mainly non-residents and entities.
The OFCs generally offer distinct benefits to investors, including favourable tax and regulatory regimes, and the ability to make deposits in foreign currencies. They also offer highly confidential services.
The Money Laundering and Anti Terrorism Bill was sent to the Special Select Committee close to two years ago. A select committee takes charge of a Bill after it is laid for the first time in the National Assembly and there are outstanding issues that still have to be dealt with.
The committee then examines the various clauses to ensure that there are no conflicting or contentious issues. The Anti-Money Laundering and Countering the Financing of Terrorism Bill was first laid in the National Assembly in June 2007, and was sent to a Special Select Committee for review before debate.
Then Attorney General and Minister of Legal Affairs Doodnauth Singh presented the Bill, which seeks to prevent money laundering, the financing of terrorism, and to allow for the civil forfeiture of criminal assets. The legislation, when enacted, is expected to provide for oversight of export industries, real estate, alternative remittance systems and other financial institutions.
Of significance, the Bill provides that all monies derived from the fulfillment of forfeiture and confiscation orders contemplated in the Act shall be paid into the Consolidated Fund. In 2000, Guyana passed the Money Laundering Act, but it was believed to be riddled with loopholes that prevented the Financial Intelligence Unit (FIU) established under the Act from carrying out its mandate.
Crimes covered by the Money Laundering Prevention Act include narcotics trafficking, illicit trafficking of firearms, extortion, corruption, bribery, fraud, counterfeiting, and forgery. The law also requires that incoming or outgoing funds over US$10,000 be reported.
The new legislation is generally intended to track money transfers and activities of commercial banks and other financial institutions.
It is also slated to complement the work of the Financial Intelligence Unit (FIU), which has received major criticisms from the United States since it came into operation in 2003.
A final draft of the legislation was completed, but because it was handed over about two weeks prior to the dissolution of Parliament, in April 2006, the legislation could not have been passed.

Latest News

Guyana still mulls offshore financial centre – Jagdeo

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

GPF arrests Presidential Guards by 48 runs as cricket action gets...

Superbet supports One Guyana 3×3 Quest

FIDE Master Drayton outclasses strong competition...

Wiltshire, Chris dominoes tourney set for March

Houston Sec’, New Central, Saints sent packing

Charles’ all-round performance helps EBDCA U23...

Features/Columnists

“One Guyana” is no less a national slogan than “Green Guyana”

If Guyana’s President Ali is the “Zelensky of the Caribbean”, who is the Putin?

Partner v. investor

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

Guyana still mulls offshore financial centre – Jagdeo

Share this:

Related

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]