Effective AML framework will demand convictions – AG

Apr 13, 2017 News

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-Calls for sharing of information among agencies
It is not enough that Guyana is armed with the relevant laws to detect and prevent money

laundering and terrorist financing.
According to Attorney General and Minister of Legal Affairs, Basil Williams, an effective Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework will demand convictions. This is an area in which Guyana has been lacking and Williams is determined to change this state of affairs.
He made this remark, yesterday, at the National Risk Assessment (NRA) workshop which was held at the Marriott Hotel.
At the workshop which is expected to conclude today, Williams said that the NRA is a good starting point in the journey towards an efficient and effective AML/CFT regime.
“The National Risk Assessment therefore serves as a yardstick from which to measure Guyana’s progress as well as the weaknesses in our regime; and being equipped with this knowledge, we will be able to know where we have to go if we are to reach our desired goal,” expressed the Minister.
Williams also stated that a completed NRA places Guyana in the company of countries like the USA, UK and Canada who have all found the NRA process to be an effective tool in addressing the defects in their AML/CFT regime.
The Attorney General noted that this process is pivotal to the further development of Guyana’s regime as it puts the nation in a better position to successfully improve on its existing framework.
Through the NRA, Williams stated that the authorities of the day will be able to prioritize and focus on the most crucial areas and strategically allocate resources to strengthen these areas. He noted that the NRA supports the policy making process by enabling the Government and other relevant bodies to address the loopholes in the regime and to plug those holes.
The Minister said that the fight against money laundering and terrorist financing is an undertaking that requires the coordinated and dedicated efforts of all stakeholders including policy makers, law enforcement, private sector and financial institutions.
He noted that Guyana already has laws to detect and prevent money laundering and terrorist financing. While the relevant laws are important, the Minister of Legal Affairs said that it is equally important that stakeholders understand the money laundering and terrorist financing threats, risks and vulnerabilities that the nation faces.
Williams asserted that identifying, assessing and understanding the risks of money laundering will undoubtedly put Guyana in a better position to mitigate those threats and vulnerabilities by implementing the necessary measures.
The Attorney General said that this is an essential part of the development and implementation of any country’s AML/CFT regime. Without going through this process, Williams remarked that Guyana would be operating in a vacuum which is counterproductive.

EFFECTIVENESS
The Attorney General commented that the recent amendments to the AML/CFT Act, which addressed deficiencies in the law, saw Guyana being rated compliant with the Financial Action Task Force (FATF)’s Action Plan.
Williams said that Guyana has existed the FATF monitoring and the Caribbean Financial Action Task Force (CFATF)’s third round of Mutual Evaluations.
Furthermore, Williams said that this significant progress has been recognized by the US Department of Treasury and more recently, the International Monetary Fund (IMF) which has commended Guyana’s efforts.
The AG said that the IMF, while recognizing Guyana’s progress also said that the country “should continue to strengthen its Anti-Money Laundering and Combating the Financing of Terrorism Framework in line with international standards.”
Williams said that he shared the sentiments of the IMF especially since the fourth round of Mutual Evaluations by the CFATF in 2022 will test the effectiveness of Guyana’s AML/ CFT regime.
The Minister of Legal Affairs said that using a data driven process to examine and reform every aspect of Guyana’s AML/CFT framework is most critical to ensuring Guyana’s effectiveness.
“Already, we have shown that we have the necessary legislative and supervisor framework in place. However, effectiveness requires much more. According to FATF , a country’s efforts in developing sound laws and regulations and implementing and enforcing them should focus on one goal, that is the high level objective of an effective AML/CFT framework,” commented Williams.
He continued, “The High Level objective says that ‘financial systems and the broader economy are protected from the threats of money laundering and the financing of terrorism and proliferation, thereby strengthening financial sector integrity and contributing to safety and security.”
The Minister of Legal Affairs added, “To achieve this high level objective, the FATF has identified 11 key goals that an effective AML/ CFT framework should achieve.”
Williams said that these key goals or “immediate outcomes” are what the FATF will assess Guyana’s efforts against; ultimately determining whether the nation’s AML/CFT regime is effective.
The 11 key goals include having financial intelligence and other relevant information being appropriately used by competent authorities for money laundering and terrorist financing investigations; confiscation of proceeds and instruments of crimes; and for supervisors to appropriately supervise, monitor and regulate financial institutions and Designated Non-Financial Businesses and Professions (DNFBP) for compliance with AML/CFT requirements commensurate with their risks.

WAY FORWARD
According to the Legal Affairs Minister, there is much work to be done to realize the 11 immediate outcomes.
Williams said, “We need to pool our collective ideas and formulate strategies to strengthen our sectors using the NRA and other international standards as a guide. In some instances, we have to go back to the drawing board and in others, we can build and improve on the architecture we already have in place.”
The politician also stressed that there must be effective information sharing as this facilitates the detection and prevention of terrorist financing and money laundering and must be central to Guyana’s regime.
He said, “Effectiveness relies on the right information being shared and acted upon. Information and evidence must be shared between entities like the Guyana Police Force, Customs Anti-Narcotics Unit (CANU), the Financial Intelligence Unit (FIU), the Special Organized Crime Unit (SOCU), the State Asset Recovery Unit (SARU), the Guyana Revenue Authority (GRA), the Director of Public Prosecutions (DPP) and financial institutions.”
The Parliamentarian said that this can be done through the formulation of Memorandums of Understanding. He said that this type of cooperation and collaboration is needed as money laundering and terrorist financing activities are becoming more sophisticated and difficult to detect.
Williams continued, “This means that regulatory authorities and enforcement bodies must be able to coordinate and cooperate effectively. This type of engagement should not only be at the national level but we must engage in mutual legal assistance with other countries.”
The Attorney General added that effectiveness also demands that Guyana secures convictions and confiscate the proceeds of crimes. In this regard, he said there will be need to train the police, members of the judiciary , state counsel at both the DPP and AG’s Chambers, financial analysts and other personnel to enable them to effectively investigate and prosecute money laundering and terrorists financing offenses.
“We will also have to focus on capacity building, especially for agencies like SOCU and the FIU that are currently understaffed so that they can competently execute their mandate…,” the Attorney General expressed.
The Minister insisted that strengthening the AML/CFT regime will help Guyana to reduce corruption, strengthen the economy, safeguard the integrity of financial institutions and create a favourable environment for investors.
He said it will show the international community that Guyana is serious about combating money laundering and terrorist financing.

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