Money Laundering Bill on President’s desk – already sealed, with signing imminent
THE Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill was recently passed in the National Assembly. The Bill signals Guyana’s commitment to becoming compliant with international regulations, but Guyana will only become a complaint regime after President David Granger gives his assent to the Bill. “The Bill is now on the desk of His Excellency (President David Granger). It has already been sealed and I suspect that within a very short space of time, His Excellency will be signing it,” State
Hon. Basil Williams, Attorney General and Minister of Legal Affairs
Minister Joseph Harmon told reporters yesterday during his weekly post-Cabinet press briefing at the Ministry of the Presidency, Shiv Chanderpaul Drive. Minister Harmon explained that the banking and business sectors of Guyana, as well as private citizens, are eagerly awaiting the passage of the Bill. He assured that Guyana’s international compliance is only one aspect of the effects the Bill will have on the country. According to Harmon, Guyana has already moved towards establishing institutions like the Special Organised Crime Unit (SOCU), that will enable the legislation to tackle money laundering and terrorist financing in Guyana’s jurisdiction. Explaining the continuous process for international review of the Bill, which President Granger is expected to sign into law, Minister Harmon advised, “It is a living kind of legislation that you adjust from time to time, based on international best practices.” Minister Harmon, however, cautioned that the legislation could come under review again by the Financial Action Task Force (FATF) in the coming years. But for now, he gave all assurances that the Bill on President Granger’s desk is fully compliant with all recommendations made by the relevant authorities, considering Guyana’s financial status on the international financial market. A simple majority approved the Bill, introduced in the 11th Parliament by Attorney-General and Legal Affairs Minister, Basil Williams, in the absence of the Opposition People’s Progressive Party/Civic (PPP/C). BACKGROUND ON AML/CFT BILL When the Bill was passed in the National Assembly, both the Attorney General, and the Finance Minister, Winston Jordan, spoke to the effects of the Bill on Guyana’s economy and security sector.
Hon. Winston DaCosta Jordan, Minister of Finance
“The proposed Bill has added the person authorised by the Financial Intelligence Unit (FIU), and it has said also that they could seize and detain cash above the sum of $10M anywhere in Guyana,” Williams told the House on June 26, adding, “that is not done whimsically or capriciously.”
He stressed the requirement in the legislation for “cogent evidence” before any seizure is done. “It seems to be higher than reasonable suspicion, because you have to have reasonable suspicion also.”
“They cannot seize cash that is in the possession of persons in the course of business, commerce, trade, and such activities,” Williams added. Both the FIU and Special Organised Crime Unit (SOCU) would have to provide the evidence in order to effect seizures.
“These legislative amendments,” Finance Minister Winston Jordan said in his June 26 address to the National Assembly, “represent our Government’s firm resolve to fight the scourge of money laundering and terrorist financing.” The Finance Minister noted the impact of money laundering on the development of a country. “If the illegal sector forms a significant part of the economy, and criminal proceeds are withheld from the formal banking system, then official data on such things as employment conception, foreign exchange movement, etc, will not reflect the economic reality in the country,” the Finance Minister continued. The International Monetary Fund (IMF) has long expressed concerns about the integrity of financial systems, which could have a dampening effect on foreign direct investment. This Bill, currently before President Granger, sought to amend the principal AML Act passed in 2009. This amended Bill introduces a Financial Intelligence Unit, as well as the enhancement of sanctions and granting greater powers to authorities tasked with safeguarding Guyana’s obligations to the international financial system. Guyana will present its case to the Financial Action Task Force (FATF) at the end of this year. If successful, Guyana will move one-step closer to lifting its financially blacklisted status in the international system.