Money transfer legislation heading to Parliament

May 24, 2009 News

A Select Committee of Parliament has concluded the report on the Money Transfer Agencies (Licensing) Bill 2008, approving several amendments.

The Bill, which was tabled in the National Assembly by Minister of Finance, Dr Ashni Singh, seeks to provide for the licensing of persons carrying on the business of money transfer agencies and will also make provision for the registering of money transfer agents and for connected purposes.

It seeks to provide an effective administrative, operational and legal framework for the conduct of the business of money transfers.

It provides that applications for a licence must be submitted to the Bank of Guyana, which may grant or refuse to grant such a licence.

A licensee under the dealers in Foreign Currency (Licensing) act or any related holding company subsidiary or other affiliate of the licensee is ineligible for the grant of a licence under this Act. The Bill stipulates that a licence expires on December 31 of every year and if a person wishes to renew it, that person must do so before January 15 of the following year.

It provides that a licensee can only conduct the business of money transfers on the premises named in the application for the licence.

It also makes provisions for a person, who after obtaining a written agreement from a licensed agency, to make application to be registered with the bank as a money transfer agent.

It gives the licensee and the money transfer agent the right to conduct the business of money transfer and provides that all persons dealing with money transfer agencies or a money transfer agent must be provided with receipts of any transactions conducted between that person and the licensed agency of the money transfer agent.

In addition, it provides for the licensee and money transfer agent to maintain proper accounts and to furnish any information required by the Bank and provides for violations of the provisions of the act.

It gives the Bank the power to make regulations and to issue guidelines or notices for the carrying out of the provisions of the act.

The proposed Bill comes at a time when the number of money transfer agencies and money transfer agents is increasing.