AML blacklisting…Guyana has chance to tailor “effective” regime – CDB expert
June 4, 2014, By KNews, Filed Under News, Source
The global anti-money laundering body is actively looking at ways to link its measures in the fight against corruption.
Dr. Toussant Boyce
Speaking Monday evening at Pegasus Hotel, respected banker/lawyer, Dr. Toussant Boyce, also made it clear that Guyana can take examples from other countries which have successfully pulled themselves out from the so-called blacklisting.
Boyce was speaking at one of the several lecture series organized by Georgetown Chamber of Commerce and Industry (GCCI). His presentation focused on the topic, “Effective Anti-Money Laundering and Countering the Financing of Terrorism Regimes”.
Present were local bankers and business leaders.
The passage of anti-money laundering (AML) legislation has heavily divided the administration and the Opposition, and has remained in limbo since being tabled early last year. The Opposition has been demanding the establishment of the Public Procurement Commission and Presidential assent to a number of critical bills.
The deadlock has seen the regional watchdog body, Caribbean Financial Action Task Force (CFATF) issuing an “adverse statement” late last month, warning its member countries to take further steps to protect themselves from risks emanating from Guyana.
How serious the “blacklisting” and the implications are, were raised at the forum.
Guyana has also been referred to the global body, Financial Action Task Force (FATF).
The situation has the business sector jittery as the measures by CFATF have implications on transactions with overseas partners and banks.
There have been warnings from many quarters of the dire straits Guyana could find itself in.
According to Dr. Boyce, Guyana has time to get its house in order. The official would know, as he is considered a regional expert on AML. He is also an Advisor, Vice President of Corporate Services, Caribbean Development Bank.
The official also stressed that passing the legislation, or becoming compliant, does not mean the end or that everything is alright. Rather, the country will have to demonstrate it is developing an “effective” regime to deal with the regulations that are being adopted throughout the world.
Guyana will need also to show a true sense of patriotism.
According to Dr. Boyce, while CFATF’s recommendations cannot be enforced by the courts, it is an authoritative body that has legitimacy. FATF will, in its assessments of countries, look for the existence of critical structural elements, and rate their effectiveness.
How Guyana deals with the serious “twin obligations” of technical compliance and making its system effective will have to take into account issues of political stability and rule of law, among other things.
Attendees at Monday’s forum at the Pegasus
Dr. Boyce drew comparisons to Malawi, an African country that is poorer than Guyana but managed to pull itself from a similar situation.
Significantly, Malawi is less than half of Guyana’s size with almost 17 million persons. Significantly also, the country at the time of passing its legislation had an Opposition-controlled Parliament, similar to Guyana.
Dr. Boyce, in his presentation, also spoke of the various levels of sanctions that CFATF takes including issuing “adverse” statements. The recent statement was a “containment measure” by the regional regulator, he said.
Whether member countries will take action depends a lot on the relationship that local businesses have with their overseas counterparts.
Dr. Boyce urged Guyana to “stand together and defy the odds as a people”.
“Sometimes we have to take a break and see the big picture.”
For Guyana to develop an effective AML regime will require time and action, more than a stated intention.
Dr. Boyce was unwilling to speculate on what happens if Guyana’s membership is ultimately suspended as situations would vary from country to country. He also believes that FATF would not object to Guyana crafting or tailoring AML regime to fit its own peculiar circumstances.
