Latest update November 18th, 2024 1:00 AM
Latest News
- ExxonMobil eyeing 8th project despite Jagdeo says 7th ‘iffy’
- City Mayor slams govt. for favouring foreign companies over locals for tax concessions
- Pope Francis urges inquiry into Gaza genocide allegations
- New aircraft for GDF commissioned
- Importing truck drivers from Bangladesh, a disrespect to Guyanese – Norton
Anti-money laundering measures… Over 200 Co-op societies face suspension for not complying
Government has moved to cancel over 200 Cooperative societies across the country as authorities move ahead with the implementation of internationally mandated anti-money laundering measures.
According to the Ministry of Labour, Human Services and Social Security, in a notice on Sunday in Stabroek News, the 212 co-ops, as they are known, has failed to comply with Cooperative Societies Acts and with the Anti-Money Laundering and Countering The Financing of Terrorism Act (AML-CFT).
Scores of cooperative societies across the country is now facing a May suspension for not complying with AML-CFT legislations which mandates that they keep proper records of their businesses.
The cancellations of the bodies will take effect from May 18th and could be appealed to the Minister of Labour, Nanda Gopaul.
“With effect from the date of cancellation, no one is authorized to transact any business on behalf of any of the societies unless ordered to do so by the Chief Cooperative Development Officer (CCDO) via public notice,” the ad said.
The notice was placed at the behest of Carol Valz, the current CCDO.
Under global laws to fight dirty money laundered in the financial system, co-op societies have been pinpointed as one of several organizations, alongside banks, insurance companies, cambios, money transfers and pawnbrokers, which are prime targets for illegal proceeds being channeled.
Regulations are now being implemented throughout the world that will demand agencies to report suspicious transactions, and introduce tighter measures that will require proper identification.
Agencies and other bodies will have to submit reports to authorities being set up to oversee the process and train officers to specifically deal with the AML.
On November 2nd, the Caribbean Financial Action Task Force (CFATF) in its review of Guyana, found that the CCDO who governs Cooperatives, does not have the enforcement or sanctioning powers for failure by the co-ops to comply with AML-CFT obligations.
CFATF, which regulates the Region’s implementation of the regulations, insisted that the CCDO must have these sanctioning powers.
Following that CFATF meeting in November, Guyana on December 20th appointed the CCDO as the supervisory authority for Cooperatives. In effect, the CFATF report of the November review said that the powers under the AML-CFT laws will allow the CCDO to sanction non-complying coops.
According to the CFATF report, “the AML-CFT also contains a provision which makes sanctions by supervisory authorities dissuasive, proportionate and applicable to directors and senior managers of reporting entities.”
There are several cooperatives existing in Guyana, including a wide range of sectors like fishing, rice and cane farming, housing and even credit unions.
However, like the Neighbourhood Democratic Councils, a number of factors including deaths, mismanagement and even corruption have marred performance of the co-ops. Many of them have been failing to submit their finances and upkeep records like membership.
In some cases, the Ministry has been battling some co-ops in the courts, after meeting resistance from members.
The current implementation of the AML-CFT legislations, in which Guyana is way behind the deadline, has been facing a stalemate in the National Assembly.
The Opposition has placed conditions on the passage of the bill, including fast-tracking of the Public Procurement Commission.
There has been increasing pressure locally, from business entities, and from a worried diplomatic community, over the passage of laws.
The country has been partially blacklisted with CFATF warning its members in November to take measures to protect itself from risks coming from Guyana.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Traditional media is still king
…Peeping Tom Kaieteur News-Election campaigns are a battle for attention, persuasion, and votes. In this digital age,... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
