Guyana’s Anti Money Laundering deficiencies flagged in Intl Narcotics Report

Mar 04, 2014 News

…influence of drug trafficking evident in political, criminal justice systems

“Guyana is a party to the Inter-American Convention against Corruption, but has not fully implemented its provisions, such as the seizure of property obtained through corruption”

Guyana’s problems regarding anti money laundering for the first time in years has escalated to the point where it has become a feature of the US State Department’s International Narcotics Control Strategy report.
The 2014 report was released yesterday and while the country was not among the highest offenders in the Caribbean as it relates to drugs, its problems with the money laundering did come in for scathing words.
The report said that the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act, the Interception of Communications Act, and the Criminal Law Procedure Act (revised in 1998) were all designed to enhance the investigative capabilities of law enforcement and prosecutors in obtaining convictions of drug traffickers in Guyana but to date, the Government has sought no prosecutions under these laws.
The report documented that the Caribbean Financial Action Task Force (CFATF) has informed Guyana that failure to demonstrate effective implementation of anti-money laundering mechanisms could lead to an international designation of Guyana as a country with significant financial sector risks.
According to the US State Department Report, “Such a designation would increase the costs of Guyana’s international financial transactions and also impact insurance rates.
It noted that the Guyanese authorities have pledged to increase efforts to comply with international anti-money laundering standards and have presented amendments in Parliament to improve existing legislation.
The United States supports the Government of Guyana’s efforts in this area and has offered technical assistance.
According to the Report, Guyana continues to be a transit country for cocaine destined for the United States, Canada, the Caribbean, Europe, and West Africa.
It states that cocaine originating in Colombia is smuggled to Venezuela and onward to Guyana by sea or air. Smugglers also transit land borders with Brazil, Venezuela, and Suriname.
Cocaine is often concealed in legitimate commodities and smuggled via commercial maritime vessels, air transport, human couriers, or various postal methods.
According to the report, the influence of narcotics trafficking is evident in Guyana’s political and criminal justice systems.
It notes that traffickers are attracted by the country’s poorly monitored ports, remote airstrips, intricate river networks, porous land borders, and weak security sector capacity.
In June, the Guyana Police Force reported seizing 418.09 kilograms (kg) of cocaine and 125.61 metric tons of cannabis.
CANU reported seizing 55.39 kg of cocaine and 2.62 kg of cannabis.
The GRA seized 359.8 kg of cocaine, but no cannabis.
The US Report said that Guyanese authorities convicted 201 persons on drug related charges during the first six months of 2013.
It said that in September, the U.S. Drug Enforcement Administration (DEA) met with Guyanese counterparts to advance efforts to investigate and dismantle drug trafficking organizations.
During their visit, DEA officials participated in a Guyana Police Force eradication of cannabis fields discovered in the interior, chopping down and destroying an estimated 124 MT of cannabis plants.
“The volume of cannabis reflects the increasing trend of farm-grown marijuana for local use and international export.”
According to the US report, as a matter of policy, the Government of Guyana does not encourage or facilitate the illicit production or distribution of narcotics or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions.
“Guyana is a party to the Inter-American Convention against Corruption, but has not fully implemented its provisions, such as the seizure of property obtained through corruption.”