PPP statements on FIU grounded in utter ignorance – Greenidge

Mar 07, 2014 News

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By Kiana Wilburg
On Tuesday last, at a press conference, the government disclosed that despite extensive research, it is unaware of the proposed amendment by A Partnership for National Unity (APNU) – to have the Financial Intelligence Unit (FIU) monitored by a non-partisan anti-money laundering body – existing in any other part of the world.

It was also unable to find similar architecture in the world where the Parliament is involved in the appointments of persons to the FIU.
Engaging members of the media were Minister of Finance, Dr. Ashni Singh, Minister within the Finance Ministry, Juan Edghill, Minister of Legal Affairs, Anil Nandlall and Government’s Chief Whip, Gail Teixeira.
Teixeira told media operatives that in relation to the FIU the government, after extensive research, found that nowhere in the world is the Parliament allowed to play a role in the appointment of members to the (FIU) nor is there an Anti-Money Laundering body to oversee the FIU, as being proposed by APNU.
Dr. Singh categorically expressed that the insertion of such a body is without precedent, considering that the Caribbean Financial Action Task Force (CFATF) had examined the legislation and made no changes in that regard.
However, APNU’s Financial Spokesman, Carl Greenidge, says that it is a non-partisan body the coalition is proposing be appointed to oversee the FIU. And that “the statements by the government are grounded in utter ignorance.”
“So what if their (Govt.) research shows that? The Financial Advisor, Roger Hernandez of the CFATF, after a meeting explained that he had not touched the FIU, since there was only one person employed, and he agreed with our position.”
Greenidge explained that during the discourse with the Advisor, the CFATF representative had emphasized that he was only authorized to discuss the financial issues associated with the AML legislation.
“He, in other words, has no power to discuss or challenge the powers of the Parliament or the National Assembly. As it relates to the CFATF’s position on the autonomy of the FIU, Hernandez said that overview should not involve interference in the day-to-day operations of the FIU.
It also means that the personnel should be appointed on the basis of clear criteria and specified qualifications and, that the grounds for termination should be specified. There should not be extended periods of acting appointments.”
Greenidge also explained that Hernandez was asked by the PPP about oversight in other countries and he explained that in the case of Barbados, there is an oversight body which actually comprised heads of the various agencies identified as being responsible for implementation.

“Notwithstanding CFATF’s rules, appointments to the Barbados FIU were not made by the head of the FIU, but by the Public Service Commission (PSC)…All the Opposition members laughed at that stage because it was clear that Mr. Hernandez did not recognize that Guyana’s legislation and Constitution equally provided for that.”
“The idea that the Assembly has neither the experience nor Constitutional capacity to vet appointments is absurd.”
The APNU parliamentarian expressed that the question of autonomy was not mentioned in the CFATF’s 2012 assessment as being in need of attention.
Greenidge said that both the Government representatives and Mr. Hernandez pointed this out.
“The inference was that the Assembly need not have worried about it. But it is precisely because the Opposition is aware that the FIU, like the enforcement agencies such as the Police, are not autonomous, that it was brought up as an issue of concern.”
“Mr. Hernandez explained that this matter was not mentioned because in 2012 the FIU had only one staff member, so the question of mode of appointment had not arisen. This does not, of course, explain why the legislation governing the appointments was not examined.”
Greenidge contended that the AML legislation allows for the appointment of the FIU head, an attorney-at-law and an accountant by the Ministry of Finance.
“The qualifications specified in the legislation are so general as to allow for anyone who has been near a bank or an economics book to meet the requirement. For the FIU Director, for example, it is specified in section 8, which reads; ‘a person with experience in legal or financial or administrative matters’. The appointment of a head in these circumstances was, not surprisingly, a matter of controversy.”
He noted as well that this is precisely why APNU had in the past explained to the CFATF that while it “has the utmost regard for its (CFATF’s) expertise, the Opposition’s local knowledge informs that there is a need, additionally, for far- reaching organizational changes and a more public (National Assembly-driven) oversight of a coordinated national body/task force… dedicated to accomplishing the goals of the CFATF”.
In spite of the claims being made by the government, Greenidge stressed that the opposition is convinced of the accuracy of its views, having heard Mr. Hernandez on the question of autonomy of the FIU and the issue of oversight.

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