AML/CFT Impasse…Ramotar, Granger agree to work to avert FATF sanctions

President Donald Ramotar, and Leader of the Political Opposition Brigadier (rtd) David Granger have agreed to continue to engage on the Anti Money Laundering and Countering the Financing of Terrorism Bill (AML/CFT) with a view to resolve the current impasse in the national interest.

The AML/CFT was discussed during a meeting held by the two yesterday and according to Granger both sides are anxious to avoid the Financial Action Taskforce (FATF) and any possible blacklisting.

David Granger

Granger said that the two sides have agreed on a number of steps in order to secure an outcome in the interest of the nation.

According to Granger after the meeting, the parties are seeking to have an outcome where the interests of all three parties are taken on board.

He was adamant that APNU has in no way backtracked on its position namely the amendments, it has submitted and the required assent of the four Bills passed by the opposition.

“Our position has not changed,” said Granger.

He noted too that while the Alliance For Change (AFC) was not present at yesterday’s meeting their concerns were discussed.

Granger said that he is confident that the differences over the AML/CFT Bill can be overcome before FATF meets later this month.

Guyana has already been blacklisted regionally by the Caribbean Financial Action Taskforce (CFATF) and recently when that body reviewed the country, it was found to be still non compliant and as such was referred to its parent body FATF, which could possibly blacklist Guyana Internationally.

That FAFT review of Guyana will be conducted during its Plenary in Russia beginning on June 15 and continuing to June 20.

CFATF had at its recent review of Guyana opted to introduce even more sanctions on Guyana.

It issued a warning to its 27 member countries to consider Guyana to be a risk to the international financial system.

The regional body advised the implementation of further counter measures to be taken against Guyana in order to protect financial systems from the “ongoing money laundering and terrorist financing risks emanating from Guyana.”

The recent CFATF Plenary Meeting resolved that a Public Statement be issued in respect of Guyana.

The statement noted that Guyana is being sanctioned as a result of the country’s failure to meet the agreed timelines in its Action Plan.

“As a result of not meeting the agreed timelines in its Action Plan, the CFATF recognises Guyana as a jurisdiction with significant AML/CFT deficiencies, which has failed to make significant progress in addressing those deficiencies and the CFATF considers Guyana to be a risk to the international financial system.

Members are therefore called upon to implement further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana. Also, the CFATF has referred Guyana to the FATF.

Donald Ramotar

“Countermeasures could entail, among others, the requirement of enhanced due diligence measures; introducing enhanced reporting mechanisms or systematic reporting of financial transactions; refusing the establishment of subsidiaries or branches or representative offices in the country concerned, or otherwise taking into account the fact that the relevant financial institution is from a country that does not have adequate AML/CFT systems and limiting the business relationships or financial transactions with the identified country or persons in that country.”

CFATF is an organization of 27 jurisdictions of the Caribbean Basin Region.
In November 2011, CFATF brought to the attention of its Members, certain jurisdictions including Guyana with significant strategic deficiencies in their AML/CFT regime.

With a view to encouraging expeditious rectification of the identified strategic deficiencies, Guyana and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Guyana’s national architecture to combat money laundering and the financing of terrorism.

To date Guyana remains non compliant.