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Law places no restriction on money laundering convicts obtaining oil licences – Report
Kaieteur News – Guyana’s oil laws apparently place no restriction on money laundering convicts obtaining oil licences. In fact, the law does not require that convictions against companies or persons applying make such disclosures.
This loophole was highlighted in the country’s second Money Laundering/ Terrorist Financing (ML/ TF) National Risk Assessment (NRA) Report. According to Attorney General and Minister of Legal Affairs, Anil Nandlall SC, the NRA report was done to ensure compliance with international obligations of the Financial Action Task Force (FATF) which requires all cou
ntries on an ongoing basis, to identify, assess, and understand their money laundering and terrorist financing risks.
The exercise had commenced in December 2019 and was conducted by a Working Group (WG) of over 70 persons representing public and private sector agencies in Guyana. The report was made available for public perusal on October 31, 2022.
In that document, it highlights that the oil and gas industry is vulnerable to corrupt actors, specifically as it pertains to money laundering. The report states that Guyana’s oil laws are not only outdated and weak but offer several loopholes for abuse by schemers.
In terms of restriction to the grant of licence, the report says the following: “Section 9 of the (Petroleum) Act prohibits the issuance of a licence to an individual, unless that person is a citizen of Guyana; and to a body or persons, unless it is a company or corporation. There seems not to be any restriction by the Act against persons or corporate entities which may be convicted of criminal offences, especially those offences which are related to ML/TF. Also, there is no provision in the Act for the disclosure of such convictions if conviction occurs after a licence was issued.”
While the law appears deficient in this regard, the report does note that the Guyana Geology and Mines Commission (GGMC) has a compliance regulatory programme which is overseen by two of its officers. Kaieteur News understands that this programme would serve as part of the due diligence work done by the commission on prospective explorers.
Guyana’s existing legislative framework for the oil and gas sector includes the Petroleum Act, Cap 92:01 (1930), which works to regulate the importation, sale and storage of petroleum; the Petroleum (Exploration and Production) Act, Cap 65:04 (1986), which deals with the regulation for prospecting and production of petroleum and licensing (PPL); the Petroleum (Production) Act, Cap 65:05 (1939), which vests in the state the property in petroleum and natural gas within Guyana; (q) The Petroleum Regulations (1930), the Petroleum (Exploration and Production) Regulations (1986); and (r) The Petroleum (Prospecting and Winning) Regulations (1967).
Ancillary legislation for the sector comprises of legislation relating to revenue, tax and customs; environmental protection; maritime administration and occupational safety and health (OSH).
The most recent pieces of legislation for the sector are the Natural Resource Fund Act and the Local Content Act.
There is also the Petroleum Commission Bill of 2017 that was tabled in the National Assembly but is currently being revised by the government. The Petroleum Commission Bill will make provision for the establishment of a Petroleum Commission to serve as a regulatory agency for Guyana’s oil and gas industry and related matters. This new regulatory agency will also see several oversight duties for the oil sector moved from the Guyana Geology and Mines Commission.
The Government of Guyana, acknowledging that it is important for the sector to be insulated from political interference, has undertaken to table the Bill during 13th Parliament.
- laundering, Law, licences, money, oil
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