Anti-money laundering laws…Worried banks want quick resolution to Parliamentary stalemate

Oct 27, 2013 News

The bankers’ association has joined calls by the private sector for adjustments to the laws to halt the flow of dirty money through the financial system. In a published statement in yesterday’s Kaieteur News, the Guyana Associations of Bankers (GAB) urged for action to end the current political impasse which has left the amendments to the Anti–Money Laundering and Countering Financing of Terrorism Act (AML/ CFT Act) in limbo.

Local banks have called for political agreements to solve the impasse on anti-money laundering laws.

The Bills laid earlier this year are critical to stop impending sanctions against Guyana for not having proper mechanisms in place to reduce the likelihood of monies, derived through illegal means, ending up in the hands of terrorists, Government said.
Guyana has until next month to pass the legislations in the National Assembly before a regional review by an oversight body. However, the legislations when tabled earlier this year by Government were sent by the Opposition to a special select Parliamentary committee to be studied. This was despite protestations by Government that the country could face sanctions.
Earlier this week, in the absence of the Opposition, the Government completed work in the select committee and announced that it be taking it back to the National Assembly for debate and hopefully passage. According the banks, a strong AML/CFT legislative framework is fundamental to the continued functioning of all of Guyana’s commercial banks, in accordance with acceptable international standards.
“It is important that Guyana enact the recommendations of the CFATF (Caribbean Financial Action Task Force) which include certain amendments to the current law that are comprehensive and satisfactorily compliant with all international and domestic requirements.”
GAB members include Bank of Baroda, Citizens Bank Guyana Inc., Demerara Bank Limited, Guyana Bank For Trade and Industry, Republic Bank (Guyana) Limited and the Bank of Nova Scotia.
According to paid advertisements, in terms of implications from the non-passage of the laws in time, Guyana could very well see bank-to-bank relationships and business between the country’s commercial banks and foreign banks be halted for an unknown amount of time.
“This includes relationships with commercial banks in sister CARICOM territories. The foreign banks may opt not to do business at all with Guyana’s banks if Guyana’s AML/CFT laws do not meet the standard required by the requisite AML/CFT bodies (in this case the CFATF) and are thereby inadequate to provide those institutions with the requisite level of comfort to conduct business with local banks.”
There had been many warnings of implications but no real clarity until now from the banking sector. Also likely to be affected is adequate access to foreign exchange in a timely manner.
“Members of the public may experience difficulty in sending to or receiving money from overseas through commercial banks and cambios if the correspondent banking relationships with foreign banks is jeopardized as there may be no bank to bank relationships to foster this activity.
Payments in a timely manner to persons overseas for provision of goods and services may be affected.”
Likely to be affected also will be the “Letter of Credit” issued by Banks in Guyana which could be refused by the overseas banks. “The total effect of the foregoing is that the impact to the integrity of the local banking sector could significantly reduce the level of international financial activities that Guyana’s commercial banks can engage in.”
GAB made it clear that a strong AML/CFT legislative framework is fundamental to the continued functioning of all of Guyana’s commercial banks in accordance with acceptable international standards. The issue has sharply divided the National Assembly with the Alliance For Change, the smaller of the two Opposition parties, saying it is willing to consider backing the legislative changes once Government agrees to establish the long-overdue Public Procurement Commission.
A Partnership For National Unity (APNU), Parliament’s largest Opposition faction, has made it clear that it has not made an input in the legislations and is unlikely to back it in the current format when it is tabled in the National Assembly sometime next month. The current 10th Parliament has been mired in deadlocks, including budget cuts since the 2011 General and Regional Elections. For the first time in 18 years, the ruling People’s Progressive Party/Civic lost its majority, although retaining the Presidency.
The one-seat edge held by the combine Opposition has been proving difficult with the ruling party now seriously considering heading to snap elections.
The issue of the anti-money laundering legislations has drawn not only the banks, but the insurance companies and private sector bodies.

4 thoughts on “Anti-money laundering laws…Worried banks want quick resolution to Parliamentary stalemate”

Kaieteur_Canada October 27, 2013 at 6:26 am

The Guyana Banksters should be directing their concerns to the puPPPet swines in Government not to the opposition.

They sat quiet all these years when the swines keep delaying the establishment of the Procurement Commission – one of the main instruments that will curtail puPPPet corruption and which pumped money into their system.

They sat quiet when the retard president refused to sign bills brought by the opposition.

Remenber, banksters are bullies who will lend you an umbrella in the sunshine and take it back as soon as the rain begins to drizzle.

Banksters, the bill will be signed when the procurement sytem is fixed and the bill is worded so no loopholes exist that will allow the swines to slip the noose.
Steel October 27, 2013 at 7:34 am

So called “anti-money laundering’ laws are in essence a new measure used
by the bankers who controls this planet assets, to further put a
draconian hold on all citizens on earth. AT their whims and fancy,
anyone who for whatever reasons of non-compliance to their agenda,
either politically, financially, or generally not supportive to
impending new stranglehold, will at the touch of a computer button, be
annihilated financially. Of course, the new measures will have to be
shown to be productive by first weeding out existing money-launderers
and exposing their corruption, then the effectiveness of the system will
be shown to be ‘self-evident’ in order to be generally accepted.
One
can expect to see a new rise in the value of precious metals, as
evaders avoid the banking system as much as possible. The Bankers will
forced those hoarded precious metals to be put into one area where these
new laws will forcibly confiscate them, ‘so-called’ secured bank
deposit boxes.
drasting saul October 27, 2013 at 9:34 am

I commend the opposition leader with great respect over the financial bill.it is time for these big companies forget their big profits and put some dignity and face value to this situation.The parliament is the overall authority in the country,and if bills are passed and need assent,this must be done,seeing that the president is a servant of the people and not the other way around.The former president had it easy,he just had to keep a closed door meeting with the former opposition leader,and whatever their arrangement was ,things were usually get done.The government has to meet the opposition half way and the opposition likewise.
Steel October 27, 2013 at 7:56 pm

So called “anti-money laundering’ laws are in essence a new measure used by the bankers who controlled this planet assets, to further put a draconian hold on all citizens on earth. AT their whims and fancy, anyone who for whatever reasons of non-compliance to their agenda, either politically, financially, or generally not supportive to impending new stranglehold, will at the touch of a computer button, be annihilated financially. Of course, the new measures will have to be shown to be productive by first weeding out existing money-launderers and exposing their corruption, then the effectiveness of the system will be shown to be’ self-evident’ in order to be generally accepted.
One can expect to see a new rise in the value of precious metals, as evaders avoid the banking system as much as possible. The Bankers will forced those hoarded precious metals to be put into one area where these new laws will forcibly confiscate them, ‘so-called’ secured bank deposit boxes.