Money Transfer Agencies to come under increased regulation

May 29, 2009 News

…opposition cite threat to autonomy of BOG

Junior Finance Minister Jennifer Webster

The National Assembly yesterday adopted the report from a select committee on the Money Transfer Agencies (Licensing) Bill and eventually passed the legislation that seeks to regulate the industry.
Minister within the Ministry of Finance, Jennifer Webster, told the House that money transfer in Guyana plays a key role in the mobilisation of foreign currency that is critical to the country’s economy and must be regulated stringently.

Shadow Finance Minister, Winston Murray, told the House that his party supports the Bill, but there was a reservation that the Bill caters for consultation with the Finance Minister before issuing, reissuing, removal or suspension of a license to conduct such business.
According to Murray, a lawyer, the Bank of Guyana is an autonomous body that should not be compelled to consult with the Minister on such matters.

He noted that to instill such a role in the legislation undermines the autonomy of the Bank of Guyana. He questioned why the Bank should have to consult with the Minister when making such decisions.
Murray cautioned, “We must guard against a public perception that there could be political interference when making such decisions.” Commerce Minister,Manniram Prashad,told the House that prior to the Money Transfer Agencies (Licensing) Bill,a company wishing to conduct such business just had to register under the Company’s Act— no questions asked.

This situation, he explained, allowed persons to conduct business unregulated and in some cases, take advantage of customers, charging them hefty fees.
He also noted that remittances were extremely important to Guyana and as such, had to be regulated.
Alliance for Change Member of Parliament, David Patterson, told the House that although his party was supportive of the legislation, his party was also concerned with the role that the Minister would have to play ,pointing out that it would reduce the autonomy of the Bank of Guyana.

He said that it was consistent with the Government’s policy of controlling everything.
The House also approved the Holidays with Pay (Amendment) Bill and the Occupational Safety and Health (Amendment) Bill, both of which were tabled by Labour Minister, Manzoor Nadir. Speaking of the OSH Bill,Nadir told the House that it provides a political instrument in the government’s program to make workplaces safer and healthier.

He pointed out that when the principal act was passed a little over a decade, the department responsible for its enforcement was small and over time has developed capacity.
According to Nadir,in the past decade, more than 70 persons have lost their lives and for this year alone some six persons have already died in their place of work.
He noted that many of the death and injuries sustained could have been avoided.

The opposition parties all supported the pieces of legislation, but while speaking of the OSH Bill, the Guyana Action Party Member of Parliament, Everall Franklin, suggested to the Minister that his Ministry and the Bureau of Standards should monitor the protective gear that is imported and sold, since there has been an influx of substandard protective gear on the market.
He noted also that the taxation applied to protective gear,should also be addressed , given that prior to the implementation of the Value Added Tax ,alot of the items imported and sold attracted a lower tax.