$5 million fine, imprisonment for fraudsters

Dec 10, 2021 News

New Power of Attorney law to include stiffer penalties…

Kaieteur News – The Deeds Registry Act is expected to be amended to include stiffer penalties to guard against fraud using a Power of Attorney. This comes months after Attorney General (AG) Anil Nandlall, SC, promised to strengthen legislation to protect property owners from fraud; the amendments to existing laws are complete and have been published in the Official Gazette.

Attorney General (AG) Anil Nandlall, SC.

It is expected to be tabled in Parliament during a sitting in December 2021 and subsequently debated. The amendments propose changes to the Deeds Registry Act and the Powers of Attorney Act.

Nandlall said recently that the government has recognised based on evidence, that powers of attorney are among the instruments used to perpetrate these frauds.

He assured that there will be a more stringent process altogether, to guard against the theft of immovable property.

Fraudsters in recent years have been forging documents and selling the properties of others, unbeknownst to them.

As a result, the Government wants to make it harder to grant a power of attorney, a document that is often used in the transfer of properties.

The new law will require both parties to appear before a Notary Public either here, or overseas, and they will have to provide several types of identification information.

According to the AG, the amendment will require the donor and the donee to each provide two photograph identification documents- identification card, valid passport or driver’s licence- that establish their identity.

The law would also now require certified and sealed or stamped copies of the photograph identification documents, and a separate witness statement, where the donor executed the power outside of Guyana, must be attached to the power of attorney and filed with the Deeds Registry.

This would now be accepted as evidence in any suit, action or other proceeding, states the explanatory memorandum.

When passed by the National Assembly and signed into law by the President, the law will also allow for anyone who certifies or propounds any false statement or document, or who fraudulently with intent to deceive, conceals or withholds or perverts any fact or document pertaining to a power of attorney, commits an offence, can be fined $5 million and imprisoned for five years.

Back in March, Nandlall had promised that, while there may be loopholes in the law and systems that allow for the unlawful activities, the lack of adequate due diligence by citizens and their attorneys also plays a role in the success of these property schemes. The AG said that one of the main reasons that fraud is happening is due to the inaccessibility of the Official Gazette. As such, he said that steps would be taken to make the gazette more accessible to the public.

“The Office of the President cannot be the only place of which the Official Gazette can be purchased. The Office of the President is not accessible to all members of the public and the aura and environment of the Office of the President is one that can be intimidating… to many persons,” Nandlall said, adding that there is no reason why the Official Gazette cannot be accessible at Regional Democratic Councils (RDCs) and Neighbourhood Democratic Councils (NDCs), Post Offices, or even popular stores and shops across the country.

He said that the Official Gazette, for instance, is essential to the sale and transfer of properties.
As such, the AG announced that steps will be taken to have the Official Gazette published online. He suggested that this could be a method of protecting citizens and their properties against fraudulent activities.