THE GOVENRMENT SHOULD HOLD AN EMERGENCY MEETING WITH THE LEADERS OF GUYANA’S FINANCIAL SECTOR

May 31, 2014 Features / Columnists, Peeping Tom

President Donald Ramotar has a moral obligation, even at this late hour, to try to broker an agreement that would allow for the passage of legislation which would ensure that Guyana is compliant with the demands of the Caribbean Financial Action Task Force (CFATF).
However, there is little possibility that any agreement can be reached with a power- hungry opposition. In the end therefore the country has to bite the bullet and face the consequences of being blacklisted.
In preparation for the impact of these consequences, the government should begin to implement measures to cushion the fallout. One of these is obviously to meet with the country’s financial sector to discuss possible scenarios and to decide what steps the banks need to take to mitigate the increased scrutiny that financial transactions emanating from Guyana will now be subject to.
The banks are the ones who will be the most affected. Their transfers will face increased scrutiny. Some counterpart banks overseas will also likely want to end doing business with local banks. That is something which has to be avoided. It is most important that the integrity of Guyana’s financial system not be tainted.
While CFATF has declared that Guyana may represent a risk to the international financial system, this need not tarnish the credibility of the local banking system. As such, the government should encourage local banks to invite representatives of counterpart banks with whom they do business to come to Guyana to see for themselves the various safeguards that are in place to ensure that tainted funds do not find their way into Guyana’s financial system.
The banks have more work to do. There are unscrupulous individuals out there who enjoy making a fortune, literally speaking, out of the country’s misfortune. It is said that one man’s tragedy is another man’s opportunity. Right now there are predators holding large amounts of foreign currency believing that the opposition’s failure to pass the amendments to the Anti Money Laundering and the Countering of the Financing of Terrorism Bill will lead to an increase in exchange rate. As such, the predators are hoarding foreign currency to make a financial fortune when the rates spike due to the sanctions that will be imposed in Guyana.
The patriotism of the banks and non- banks cambios should be tested. The government should come together with them to agree on measures to avoid an increase in the exchange rate. It has happened in the past and the crisis that Guyana is now about to enter would justify this type of intervention.
Unless the exchange rates are held stable, the cost of living will become uncontrollable. Prices will increase and the poor people will suffer.
All the gains in disposable income made over the years will disappear. The government therefore should sit down and agree with the bank and no- bank cambios to an agreed buying and selling rate until such time as the crisis is over which could be as long as three years.
The opposition may not have realized the time it will take for Guyana to unlock itself from the effects of the blacklisting by FATF. CFATF was patient for more than a year with Guyana, hoping that the necessary amendments would have been passed. It was patient and understanding because it understood the great damage that could be caused by the act of blacklisting.
The institution knows all too well, and Guyana should now try to appreciate this, that even if the blacklist is removed tomorrow, the damage done by Guyana being reported to FAFTF as posing a threat to the international financial community will take years to reverse.This is the fate to which the opposition parties with their one-seat majority, have brought this country. They could have made their demands during the Budget debate. Instead of doing that they chose the amendments to the AMLCTF to try to extract political concessions from the government.
It is clear now that the AFC and APNU can no longer be entrusted with the future of this country. They will destroy this country within one year of taking power because all they are concerned with is cutting, chopping, not approving, frustrating and agitating against policies and measures aimed at moving Guyana forward.

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THE GOVENRMENT SHOULD HOLD AN EMERGENCY MEETING WITH THE LEADERS OF GUYANA’S FINANCIAL SECTOR

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THE GOVENRMENT SHOULD HOLD AN EMERGENCY MEETING WITH THE LEADERS OF GUYANA’S FINANCIAL SECTOR

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