The Story within the Story… Why so much cash?

Jan 14, 2018 News

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By Leonard Gildarie

I have a severe difficulty in understanding why as a people we continue to walk across the bridge, the middle of which has long fallen in the treacherous waters below.

For a number of years now, we read with growing horror of bandits tracking victims to their homes, robbing them, sometimes committing the ultimate act.

There was a time when businesses were under siege. Very few business persons left home without wondering if it was the last time they would see their loved ones. Yes, we walked those dark days in the 2000s.

I was a little reporter in 1999 at Stabroek News, covering the courts one day in front of the then-Chief Magistrate, Paul Fung-a-Fat. A sudden burst of what sounded like gunshots and tyres screeching shattered the quiet of the courtroom.

The persons on the benches scattered. The magistrate hurriedly exited to his chambers.

The unthinkable had happened. A brazen attack by bandits had just happened at a cambio on America Street. Vehicles were seen reversing, some driving up the one-way.

It was later revealed that the bandits, led by the infamous Linden ‘Blackie’ London, had sped up the crowded Water Street, heading north on a busy work-day in their getaway.

For someone who can’t picture what that is like, imagine vendors on both sides of Water Street with a small opening to allow traffic through. Imagine the bandits managed to clear that street in 1999 in their getaway.

SWEET, SWEET CASH

That brazen robbery had raised the harsh reality of how attractive loose cash could be. The cambio had cash. Five or so bandits held the formidable America Street at bay for several minutes that day.

Fast-forward to today, we read every so often of persons from the bank and airport being trailed to their homes or waylaid and brutally robbed. The trauma never leaves.

From all indications, the bandits have eyes and ears at both areas. There have been growing suspicions that some persons right at the airport and even the banks have been colluding with the bandits.

Over the years, the cops, under a growing weariness from the public, have managed to dismantle quite a few of these gangs. They have managed to rise with some alacrity again. In the past year or so, without looking at the stats, I have the impression that there is a major problem.

They say that there is nothing quite as attractive as money. Maybe we can beg to differ.

The presence of large amounts of cash and valuables is not something we are willing to broadcast. So how do the bandits know?

We often hear of contractors being robbed while collecting monies from the bank to pay their workers. Could it be that the workers knew and somebody whispered?

I had the experience of building three homes for relatives and it was worrisome times when it came to paying workers. It meant that I had to visit the bank and keep the cash for some time.

We have become a society that is heavily dependent on cash. Across the country, in every sphere of society, the exchange of cash is preferred to cheques. We are deeply suspicious of cheques because of numerous frauds.

We suspect the banks because the records would attract the attention of the authorities like the Guyana Revenue Authority and others.

I recall a few years ago, the Bankers’ Association was talking about creating one ATM card that can be used to withdraw cash at any machine, be it GBTI, Demerara Bank, Citizens Bank, Republic Bank or Scotiabank

There has been little talk since then about the progress of that project.

We still have numerous businesses in Guyana that are withdrawing large amounts every week and monthly to pay workers. The entire accounts teams have to set aside those days to deal with filling the envelopes. Security has to be beefed up on those days.

OPTIONS

For years now, the banks have the possibilities of accepting cheques from businesses to pay workers who have accounts there. Those cheques come with a pay sheet of the names and accounts to be credited.

There are also the possibilities of standing orders. You have six workers and you know the monthly salaries. You authorize the bank to take the money from your account and credit it to those of the six employees every month. It is called a standing order.

To be fair, I drive every so often through the city. Some of the banks have long lines at the ATM machines. How could this be, we ask? Why not more ATMs? Would it not reduce the need to have so many tellers?

We visit the US and other places and there are banks where you can’t see a single staffer, save for the security, and you deal with a machine. You can deposit cheques and withdraw cash, similar to ATMs. It is how banks have evolved in the US.

In Guyana, GTT has introduced Mobile Money, where you can use your phone to pay your energy, water, cable, internet and other bills.

I don’t have to tell you that GTT may disclose that their growth projections for such a service are not where it should be. I believe that there is deep suspicion by the populace over these services.

Housewives and others want to talk to a teller or cashier and are resisting the change.

Authorities in Guyana have been talking about crime and its reduction.

DISINCENTIVES

We, as a people, have to be proactive too. Our private sector, along with the banks, has to start aggressively dealing with disincentives to discourage cash transactions.

What do we mean by disincentives? The forestry sector has been battling the wholesale exports of raw logs. Somebody came up with the idea to introduce a graduated fee that is supposed to increase every year. We hear that some loggers have decided to turn to smuggling out the logs to escape the fees.

I have to ask the Guyana Forestry Commission to provide data that will cast some light on whether this disincentive has worked.

I have a suggestion that may not find favour with lots of folks. How about the banks introducing fees on cash deposits and withdrawals that may vary depending on the amount?

There may be fees now… but maybe some more fees?
We simply have to reduce our cash transactions.

We now have anti-money laundering laws, whether we like it or not. In the coming years, it will get tougher. There will be prosecutions. There is significant scrutiny now and if we don’t comply, tomorrow morning this country could face the harsh reality of sanctions.

Already, we are skating on thin ice, as corresponding banks which this country depends on to send and receive monies to conduct our trade, are pulling out.

Tough new laws and costs of monitoring our banks are forcing them to take some action.

Some Caribbean territories are complaining now of the impact of these de-risking measures by the corresponding banks. We can lose more if we don’t comply.

We have to start now to reduce our cash transactions. It will not only reduce the risks of robberies, but also ensure we toe the line with those new world regulations that Guyana must adhere to. There is much at stake, in addition to security.

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