Anti Money laundering February 28 deadline…Failure to pass Bill will have enormous economic effects – PSC

Feb 27, 2014 News

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By Kiana Wilburg
A most critical decision will be made today in the National Assembly over the Anti Money laundering and Countering the Financing of Terrorism Bill. Despite Government’s calls for the political Opposition’s unwavering support, it has remained firm that certain conditions must be satisfied first before such is given.

By February 28, Guyana is expected to submit a report to the Caribbean Financial Action Task Force (CFATF). But the recent indications by the political Opposition to withhold its support to the Bill has now forced the Private Sector Commission (PSC) to  publically express its concerns over the economic consequences that will result if the Bill is not passed and the report not submitted.
Guyana’s failure to comply with prior deadlines has already placed it on the CFATF’s regional blacklist. And its financial Advisor, Mr. Roger Hernandez has recently stated that the mere passage of the legislation will not be enough to erase its misgivings and necessitate immediate removal from their list. Hernandez expressed that implementation of the legislation is the only way out.
In addition, there lurks an even more poisonous bite if Guyana fails to meet the deadline on Friday; the country faces being recommended to the Financial Action Task Force in Paris and the International Cooperation Review Group (FATF/ICRG). This of course, is a more serious course of action. It would mean an international call for countries and banks to take protective measures against Guyana. To get off FATF’s blacklist can take as many as 18 months.
But even in the face of this danger, some local businesses and associations have expressed that the political Opposition which has been at the center of the delays, should remain strong in their objections which are geared towards ensuring that Guyana gets a legislation that is strong, one that this time around when enforced does not toy with the constitutional rights of citizens and does not give excessive powers to any Minister.
On the other side of the divide, there are those agencies who are extremely disappointed that the political Opposition is delaying the Bill despite the fact that the CFATF’s advisor has said that the Bill as it is, is compliant.
The PSC, after recent talks with the political Opposition, was unable to persuade them to lend their support with blinders on. The Commission reminded that a number of international banks have begun to impose financial restrictions with consequential delays on transacting business with Guyana.
The Commission in a public missive strongly expressed its concern over the “enormous and irretrievable damage that will be done to the country’s economy from which it will take Guyana a minimum of two years to recover after having first met its international obligations to legislate and implement measures against money laundering.”
In spite of the Commission’s worry, Financial Analyst, Ramon Gaskin is of the firm belief that the impending economic calamity should also be placed on the background that Guyana is actually paying for the Government’s failure to uphold the constitutional demands by the A Partnership for National Unity (APNU) and the Alliance For Change (AFC).
“The Principal Act is unconstitutional and the Opposition has a right to fix it. If the Government believes that there is such a great apocalypse on the way, then meet with the Opposition and grant them their requests. The Opposition is not asking them to do anything that is illegal. They are simply asking the Government to be responsible and uphold the Constitution. Instead they continue to refer to their crafty scare tactics.”
Supporting Gaskin’s comments, A Partnership for National Unity’s Shadow Minister of Public Works and Telecommunications Joseph Harmon during a press briefing yesterday said that the PSC needs to understand that the Legislation without being strengthened is “just toothless.”

“The Legislation needs teeth and needs a more transparent arrangement in terms of the Financial Intelligence Unit (FIU) having clear terms on the criteria for appointment and having reporting mechanisms established in a very clear manner.”
Harmon added, “We need to remove elements of the act that create doubt. We are not asking for anything that is unconstitutional. Our discussions with the PSC were not a negotiation. As a stakeholder in this country they have a right to ask questions. In this regard they are not a political party. We listened to them and we told them our concerns and we asked them to utilize the same spirit with the Government to ensure that they grant the demands we asked for.”

 

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