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Insurers call for emergency meeting of Parliament over Money Laundering Law

Oct 21, 2013 News

…say Guyana totters on the brink of financial disaster

The Insurance Association of Guyana has called for the 65 Members of the National Assembly, to convene an emergency session to consider the amendments to the Anti Money Laundering and Countering the Financing of Terrorism.
The body in a public missive yesterday said that in light of the immediacy of the issue the Parliament should treat the matter as a national emergency, which must take precedence over any domestic or political issues given that failing to do so, “threatens the viability and integrity of our financial sector and the well being of this nation.”
The Association in its plea said, “We hereby request an emergency convening of the Parliament for the singular purpose of addressing the technical issues associated with the Bill to allow its urgent and immediate passage into law.”
The amendments to the Anti Money Laundering and Countering the Financing of Terrorism Bill are currently before a Parliamentary Special Select Committee.
That Committee is slated to meet today to continue consideration of the proposed amendments.
The Insurance Association said that Guyana is currently on the verge of being blacklisted with the effects being immediately felt in the financial sector.
The body said that should Guyana be blacklisted for failing to meet the requirements of the Caribbean Financial Action Taskforce (CFATF), “insurance and banking transactions will become nearly impossible.”
It explained that “without the global acceptance of risk, a small country with limited insurance bearing capacity, such as Guyana, cannot effectively insure the country’s assets.”
The Insurance Association explained too that should Guyana be blacklisted, “all commerce requiring life, health, motor, cargo, marine, aircraft, liability, accident, fire and catastrophic loss insurance will be severely restricted.”
The body said the issuance of all financial instruments will be impaired as a result of being blacklisted.
“Bankers will be unable to effect simple letters of credit…Simple essentials of life will become scarce commodities,” the Insurance Association said and cited as example fuel.
According to the body, all financial services will be severely affected as will every form of commerce supported by a healthy financial sector.
The Association warned that “indeed, this process has already begun and the financial sector is replete with incidents of heavily increased global scrutiny of otherwise ordinary transactions.”
“A heavy toll will be exacted from the people of our nation…Every man, woman and child will suffer.”
The Insurance Association of Guyana in its plea to having the amendments to the legislation enacted, said that there is nothing in the recommendations which threatens the sovereignty or integrity of the nation.
“Yet it remains ungratified to date as our country totters on the brink of financial disaster which blacklisting will surely bring.”
In presenting a background to the recommendations by the international body, the Association explained that the global phenomenon of the proceeds of criminality laundered through the established legitimate financial systems of the world and utilized to finance terrorism and other criminal activity, has long engaged the collective attention of the governments of the world.
“These activities have threatened to destabilize the entire governments and have had devastating and debilitating impact globally costing economies of the world billions of dollars in terms of destruction of property, loss of life and human suffering…indeed proceeds of crime are now utilized in the promotion of armed conflict and the proliferation of weapons of mass destruction.”
It is for this reason that in 1989 in Paris, France at the summit of the G7 nations, the Financial Action Taskforce (FATF) was formed to combat the problem. The formation of the body led to the eventual formation of a number of recommendations to be adopted by governments globally.
Failing to adopt the recommendations would see countries being placed on a FATF blacklist placing that country under intense financial pressure.
“Essentially, global financial transactions of the blacklisted country are no longer accepted or accepted only after intense scrutiny by the rest of the world’s financial markets…Incomprehensively, Guyana is on the verge of being blacklisted.”

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