US Treasury downgrades Guyana’s anti-money laundering risk

Jan 20, 2017 News

As local financial institutions continue to tighten their systems to ensure dirty monies are not allowed through, there is some more good news for Guyana.

US Department of the Treasury, Washington DC.

Yesterday, the US Department of the Treasury in its latest advisory on the Financial Action Task Force (FATF)-identified jurisdictions with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) deficiencies, said that the status of Guyana being on a watchlist has changed- for the better.
“Guyana has been removed from the FATF listing and monitoring process due to its significant progress in establishing the legal and regulatory framework to address all or nearly all of its strategic AML/CFT deficiencies on a technical level. This jurisdiction will work with its FATF-style regional bodies as it continues to address the full range of AML/CFT issues identified as part of the mutual evaluation process.”
The advisory yesterday explained that on October 21, 2016, FATF updated its list of jurisdictions with strategic AML/CFT deficiencies.
“These changes may affect U.S. financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions,” the US Treasury advisory said.
As part of the FATF’s listing and monitoring process to ensure compliance with its international
Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards, the FATF identifies certain jurisdictions as having strategic deficiencies in their AML/CFT regimes. These jurisdictions appear in two documents- the “FATF Public Statement,” which includes jurisdictions that are subject to the FATF’s call for countermeasures or are subject to Enhanced Due Diligence (EDD) due to their AML/CFT deficiencies, and “Improving Global AML/CFT Compliance: on-going process,” which includes jurisdictions identified by the FATF to have AML/CFT deficiencies.
“On October 21, 2016, the FATF updated both of these documents with the concurrence of the United States. Financial institutions should consider these changes when reviewing their enhanced due diligence obligations and risk-based policies, procedures, and practices with respect to the jurisdictions noted below,” the advisory said.
Late last year, the Coalition Government, following a Paris meeting attended by Minister of Legal Affairs, Attorney General, Basil Williams, said that FATF has agreed that Guyana had made significant progress in addressing its deficiencies.
”Guyana will no longer be subject to the FATF’s monitoring under its on-going global AML/CFT compliance process. The country will work with the Caribbean Financial Action Task Force (CFATF), of which it is a member, to further strengthen its AML/CFT regime,” the website said.
Guyana’s removal from the FATF global watch list is a major accomplishment in the nation’s fight against financial crimes and terrorism.
Guyana was at risk of being blacklisted by the inter-governmental body which is tasked with developing and promoting policies to combat money laundering and terrorist financing. The blacklisting would have resulted in grave implications for the country’s private sector, trade and financial systems.
In 2015, despite fierce objection by the opposition, the coalition Government passed the AML/CFT Amendment Bill 2015, paving the way for all financial transactions in the country to be monitored.
In September a team from the international body conducted an onsite inspection as part of the process to review Guyana’s compliance to the standards outlined by the FATF.
Under the regulations, countries has to tighten regulations and even pass legislations to strengthen its systems.
The transfers of large sums have become harder with more questions asked and more paperwork.
A number of US banks have already, rather than face increased costs from monitoring, have decided to cut relations with the local ones in the region.

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