Private sector ‘fed up’ of Opposition’s shifting positions : –PSC Chair, Ramesh Persaud
HEAD of the Private Sector Commission (PSC), Mr Ramesh Persaud, yesterday weighed in on the main Opposition’s dismissal of the importance of complying with the regulations set out by the Financial Action Task Force (FATF), and by extension, those of the Caribbean Financial Action Task Force (CFATF).
“The PSC’s position is that we are fed up of the shifting positions on this matter. We believe that it is highly irresponsible to write off FATF and CFATF,” he told the Guyana Chronicle.
After the Parliamentary Special Select Committee’s last meeting to review the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill last Wednesday, the Committee Chair, Gail Teixiera, told the Guyana Chronicle that A Partnership for National Unity (APNU) “scoffed” at the necessity of Guyana meeting the requirements set out by the financial regulatory bodies.
Persaud underscored the fact that while Guyana has felt the impacts of being blacklisted regionally by CFATF last November, risking official blacklisting from FATF will be disastrous for the local economy.
“CFATF’s membership is about 34 countries. If you look at FATF, what we have is major countries like the US (United States of America), Canada and Europe, all of which are major trading partners. To dismiss such a huge organisation is nothing short of irresponsible,” the PSC Chair said.
As it stands, the Parliamentary Special Select Committee is caught in a deadlock with no progress on the following issues: agreement on the passage of the AML/CFT (Amendment) Bill; agreement on APNU’s proposals to amend the AML/CFT Principal Act; and agreement on the counter-proposals offered by the Attorney-General (AG) to address what are viewed as problematic areas of APNU’s amendments.
The Committee meeting last Wednesday (June 11) was adjourned indefinitely.
PASS THE BILL
Persaud said the stalemate is frustrating the private sector.
“The PSC, at this point, is very much frustrated at the non-movement of the Bill,” he said, particularly given that the nation is grappling with the beginning of the implementation of counter-measures advised by CFATF when it referred Guyana to FATF on May 29.
The counter-measures against Guyana that were advised by CFATF in a missive to its members include the following: 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 Guyana; and taking into account the fact that financial institutions from Guyana do not have adequate AML/CFT systems and limit the business relationships or financial transactions with the country.
Had the AML/CFT (Amendment) Bill been enacted in May before the CFATF had held its plenary session, Guyana could, in all probability, have avoided being referred to the FATF, particularly since the CFATF noted that 90 per cent of the deficiencies identified in the country’s draft are legislative in nature.
“The world at large, all the stakeholders on this issue, must be aware that the private sector is in total support (of) passage of the AML/CFT (Amendment) Bill,” the PSC Chair stressed.
In a bid to meet the CFATF’s requirements, the bill was tabled in the National Assembly in April 2013, but was referred to a Parliamentary Special Select Committee, and was eventually voted down by the combined Opposition in November 2013.
The Bill was re-tabled in December 2013, and was again referred to the Parliamentary Special Select Committee, where it has been languishing ever since, its passage attached to several other conditions being called for by the combined Opposition.
APNU, for instance, has proposed three amendments; but given that the APNU proposals have been viewed as problematic, the Attorney-General, on behalf of the Government, offered them counter-proposals in the interest of ensuring that the amendments made are CFATF-compliant. These counter-proposals were considered by the Parliamentary Select Committee and were rejected by APNU.
The main Opposition is also calling for the President to given his assent to several Bills passed in the National Assembly, including the Local Authorities (Elections) (Amendment) Bill 2013, which states that elections must be held on or before August 1, 2014. The Head of State has already forwarded to the National Assembly his explanation for his non-assent.
On the other hand, the AFC, having fully thrown its support behind the APNU position, is demanding establishment of the Public Procurement Commission (PPC), which the government has agreed to, provided that Cabinet retains its no-objection role in the process. This position has been rejected by the AFC.
However, after the CFATF announcement had been made by May 29, the AFC noted in a statement that it is now willing to amend its position and support Cabinet’s retention of its no-objection role.
FATF’s next plenary meeting is slated for the period June 23 to 25, 2014 in Paris, France, at which time the international body is likely to put Guyana up for review by its International Cooperation Review Group (ICRG).
PULL QUOTE: ‘The PSC’s position is that we are fed up of the shifting positions on this matter. We believe that it is highly irresponsible to write off FATF and CFATF’
Written By Vanessa Narine
extracted from the Guyana Chronicle