Worried CARICOM discusses non-passage of AML-CFT law changes

Mar 11, 2014 News

…writes Ramotar on negative impact

The Caribbean Community (CARICOM) says that it is extremely worried about the non-passage of the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill and has formally written to Guyana, expressing the Community’s deep concern at the wider implications for the region.
In a letter dated March 7, 2014, to President Donald Ramotar, Barbados’s Prime Minister Freundel Stuart said, “Without any doubt, this situation and the threatened action by CFATF will affect Guyana and the entire Caribbean region, and will negatively impact the well-being of our people.”

CARICOM has expressed alarm over Guyana’s non-passage of anti-money laundering legislations

The issue was so important to CARICOM that yesterday during a meeting of the Heads of Government in St. Vincent and the Grenadines; it was set to become the subject of talks.
“I trust that during our inter-sessional meeting we will be able to discuss this matter in caucus, and see what other action we can take as a group to assist Guyana at this juncture.”
Guyana’s Parliament has been in a deadlock since last year after the Bill, designed to stop proceeds of illegal businesses from entering the financial system and by extension, supporting terrorist activities, has been hovering between the floor of the National Assembly and a special select committee tasked with fine-tuning it.
The Opposition has been demanding that a few changes be made. Another condition is the establishment of the Public Procurement Commission.
In November, after the country failed to pass the law changes, the regional regulators, Caribbean Financial Action Task Force (CFATF) warned other CARICOM member countries to take measures to protect themselves from the risks coming from Guyana.
Neither Government nor the Opposition seems to be budging and the issue has been worrying bankers and other stakeholders of the implications.
Under the legislations banks, insurance companies, cooperatives, pawnbrokers, cambios, money transfers and a host of other agencies have to submit reports and raise red flags of suspicious transactions to a local body called the Financial Intelligence Unit (FIU).
The law changes will allow to measures to be taken for the seizure of monies and property acquired from illegal activities and proceeds. All agencies named have to adopt controls that will mandate customers to produce proper identification.
Guyana’s non-passage of the Bill has seen pressure from civil organizations and business bodies.
Over the weekend, former CFATF Chairman, Sir Ronald Sanders, urged for mature heads and negotiations for a swift resolution, warning that blacklisting is almost certain.
With several Caribbean nations part of the CFATF, any blacklisting would have implications. Venezuela is buying rice from Guyana. So is Jamaica. Guyana is also conducting talks with other islands in the region. Any blacklisting will see them taking actions that will delay or at the least, reduce the flow of trade proceeds to Guyana.