Guyana's National Assembly in session.

Despite the Guyana government’s fears that the country could be internationally “blacklisted” as an uncooperative jurisdiction in preventing money laundering if the laws are not amended by month-end, the opposition late Tuesday night succeeded in sending the bill to a select committee.

  

Moses V. Nagamootoo

                 

Alliance For Change (AFC) parliamentarian, Moses Nagamootoo vowed that the international community would not be allowed to railroad Guyana’s sovereignty at the altar of international sanctions.

“It is not only when we are faced with international sanctions that we come conveniently to invoke patriotism and national interest in this Assembly,” he said. He justified the matter being sent to the Select Committee on grounds that amendments to 2009 Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Act required examination of several other corresponding laws on gambling, mutual assistance in criminal matters, securities industries, foreign exchange, money transfer agencies transfer, cooperative societies, companies and insurance.

After the sitting of the National Assembly, representatives from the government and the opposition agreed to the composition of the select committee. They are Peoples Progressive Party-Gail Teixeira, Home Affairs Minister Clement Rohee, Finance Minister Dr. Ashni Singh and Attorney General and Legal Affairs Minister, Anil Nandlall; AllianceFor Change- Khemraj Ramjattan; A Partnership for National Unity (APNU)- Debra Backer, Joseph Harmon, Basil Williams and Carl Greenidge. Teixeira is tipped to be Chairman when the committee holds its first meeting on Wednesday.

Lawmakers have given themselves 14 days including weekends to examine the bill in the committee before it goes back to the full House for expected passage on May 22, two days before the deadline set by the Financial Action Task Force (FATF), a global watchdog against financial crimes.

In his failed bid to get the opposition-controlled House to debate and approve the “copious and elaborate” amendment to the AML/CFT on Tuesday night, Attorney General, Anil Nandlall warned that the country could face “serious sanctions.”

“Some of the ramifications and consequences which can flow and sanctions which may be imposed as a result of our non compliance can be, Sir, putting us on what is referred to as an international blacklist and when countries are placed on that list a whole new set of international treatment is meted out to countries,” he told the 65-member House.

Nandlall related that overseas experts have told him that international transactions by blacklisted countries are subject to stringent scrutiny and examination. “Also prohibitory sanctions are imposed which would preclude Guyana from participating in a whole host of activities to which we are accustomed,” he added.

The Chairman of the Private Sector Commission (PSC), Ronald Webster has said that investors from key Western Nations could come under pressure because doing business in Guyana could violate their corporate governance rules if the country is blacklisted.

The FATF is expected to review efforts made by Guyana, Caribbean and other countries at its plenary meeting in Nicaragua from May 27 to 30. The legislative review for the region was done by the 29-member Caribbean Financial Action Task Force (CFATF) in keeping with the Palermo Terrorist Financing and Vienna Conventions which are monitored by the United Nations (UN).

He dismissed suggestions that government’s tardiness led to the Bill being taken to the House only on April 22, saying that “a lot of work” was being undertaken by the CFATF, Guyana’s Financial Intelligence Unit (FIU) and the Attorney General’s Chambers.

Nandlall expressed concern that the Select Committee process could result in the almost customary “protracted delay” in the consideration and approval of the Bill.

Similarly, government back-bencher Gail Teixeira made a stirring appeal for the opposition to support the bill going through all of its stages in Guyana’s national interest. She rejected suggestions that the opposition knew little about the amendments, saying that she was aware that the American, British, Canadian and European top diplomats here had met with the opposition and briefed them.

Teixeira, who is Presidential Advisor on Governance, said it was possible that there would not be sufficient time for gazetting and assent by the President.

A Partnership for National Unity’s (APNU) Basil Williams, in insisting that the Bill be sent to a Select Committee, argued that careful scrutiny of the legislation was equally crucial. “We can’t short-change the citizens of Guyana. It’s a very complex bill,” he said.

If passed, the AML/CFT amendments would give the Governor of the Bank of Guyana the right to maintain a list of terrorists, terrorist groups or organisations based on information being provided by the United Nations. The list would be circulated to financial institutions requesting information on whether they have funds in Guyana.  The Central Bank Governor would determine whether to continue the transaction or business relationship or submit a “suspicious transaction report immediately and cease all business transactions or business relationship with such a person or entity. The Attorney General can then move to get a High Court Judge to “freeze the funds of the designated entity.” The terrorism-related entity can ask the judge to review the freeze-order 60 days after it was published in the Official Gazette.

Persons connected to a casino or other gaming entity, according to the amended Gambling Prevention Act, would have to be first screened by the Bank of Guyana for their connections with the underworld. “The Gaming Authority shall assess the integrity of an applicant, partner, shareholder, office holder or an applicant and beneficial owner on the basis of fit and proper criteria on a regular basis.”

In the case of entities governed by the Securities Act, Companies Act and the Insurance Act;  the AML/CFT Act is expected to be amended “to prevent criminals or their associates from holding or being the beneficial owners of an interest in or holding management functions” in entities governed by those laws.

The directors and senior management of any company regulated by the Securities Act and carry on business or act as a financial institution shall be certified by the Bank of Guyana, the amendment states

The law would compel the production or obtain access to all records, documents or information for monitoring of compliance in relation to money laundering, terrorist financing or proceeds of crime laws.

President Donald Ramotar has said that fighting money laundering, bribery and other forms of corruption was not only important for Guyana to stick to its international treaty commitments, but also to strengthen the moral fibre of the country and dispel rumours.

The Guyana government has been repeatedly accused of being too cozy with persons of questionable character.