PUT THE NATION FIRST

Sunday, 9 February 2014, Source

POWER is a heady thing; it can subvert the best of intentions; and against incontrovertible evidence and intractable, self-serving positions taken by the PNC/APNU/AFC, stakeholders and well-wishers in and of Guyana are hoping that the combined opposition have the best intentions of putting the nation first and will support the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill, even if in a last-minute effort to save this country from the dire consequences of non-compliance with the strictures of the Financial Action Task Force (FATF), which is based in Paris, France.Belize Opposition Leader, Francis Fonseca has taken the high road and, in a graceful gesture of co-operation for the national good, Belize parliamentarians, quoting from a newspaper in that country, “… gave rare bipartisan support to a raft of legislation in the National Assembly this week, as the country tries to avert major financial sanctions already being felt by our sister Caribbean country, Guyana. This follows a call last November by the Caribbean Financial Action Task Force (CFATF) to its members to ‘consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating’ from Belize and Guyana…Belize Opposition Leader Francis Fonseca said that the laws would inevitably lead to the complete undermining of the offshore industry in Belize—which is perhaps what is intended….Fonseca said that this is the reality of life in 2014: “We can complain, but we have to comply.”

Noting Opposition resistance against the legislative changes in Guyana, Prime Minister Dean Barrow went on to thank Belize’s Opposition for supporting the bills: “I certainly appreciate, in any case, the sense of realism that the Opposition is displaying and their support of the measures…”  The report continued “In speaking of the legislation Wednesday, Prime Minister Dean Barrow, Minister of Finance and Economic Development, said the Financial Action Task Force (FATF) is meeting on Monday, February 10, in Paris; and on the agenda is the subject of the possible blacklisting of Belize and Guyana.”

A gridlock between Guyana’s Opposition and Government has meant that they were unable to get their legislative measures passed last November, when the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill was defeated; but the bill has since been taken back to parliament, given the huge national implications with which they will have to contend.

The private sector community and a large group of civil society members of Guyana are calling on the Opposition to let the bill go through on Monday, warning of the dire consequences for Guyana, which exports primary products such as sugar, rice, gold, diamonds, and bauxite. Of note is that Guyana is also the home of the CARICOM Secretariat.

Guyana’s Chief Whip, Gail Teixeira has said that the level of remittances has been dwindling, as there has been increased scrutiny of persons sending money to the country. She said that due to the additional scrutiny now in place, people sending money will be asked by banks to pay additional fees – that is how ordinary people will be affected.

However, as for business and government foreign transactions, such as the purchase of goods and services, the private sector in Guyana is now screaming that they are now being asked by banks to fill out an inordinate amount of paperwork for overseas purchase of equipment—which has caused setbacks in the productive sector.

However, A Partnership for National Unity (APNU) front-bencher, Joseph Harmon said in a media report last Tuesday that some of the measures in the current Anti-Money Laundering & Countering the Financing of Terrorism (AML/CFT) Bill saw the possibility of rights related to searches and seizures being violated. He added that the “even more draconian measures” in place would be a threat to certain liberties.

But Attorney General and Minister of Legal Affairs, Anil Nandlall, rejected the negative characterisation of the AML/CFT Bill, and said, inter alia: “Money laundering, the proceeds of crime and terrorism, the mischief which the bill addresses, are extraordinary criminal conduct which has had extraordinary impact on every part of the world where they manifest themselves. They have led to the deaths of thousands and destroyed the lives of hundreds of thousands of people worldwide.

“Therefore, such extraordinary ills require extraordinary laws and penalties to tackle them. That is the philosophy which inspires and informs this legislation,” the Attorney General stated.

“This piece of legislation is part of the laws of the entire Caribbean and in most countries of the English-speaking Commonwealth. We are doing nothing new and novel in Guyana by promulgating this bill,” the AG stressed.

The APNU Member of Parliament (MP) claimed that Nandlall “would have been bandying the idea that the amendments were prepared by the Caribbean Financial Action Task Force (CFATF)”, and as such there were no sessions with stakeholders, such as the Bankers Association, to find out how it would affect them.

But the AG responded, “Mr. Harmon is absolutely wrong in his contentions that the AML/CFT was prepared by the CFATF, and that there was no consultation with stakeholders.

“Firstly, the bill was never prepared by CFATF. The bill was crafted by us in Guyana, based upon recommendations made by CFATF to Guyana in their effort to correct certain deficiencies which they identified existed in the legal architecture of our AML/CFT regime.”

The private sector, the banking sector, the manufacturing sector, the diplomatic community – stakeholders from all walks of life, including supporters of the APNU/AFC combo, have urged the joint opposition to support the bill in the national interest, with no success so far; and with an ever-looming deadline.

The Attorney General made it clear that the principal act spent over two years in a Special Select Committee – meetings that were attended by stakeholders who made contributions.

He said, “You will recall (that) since March 2013, when the bill was first laid in the National Assembly, the Opposition claimed that they have a contribution to make to this bill, and that they want a “good bill”. Well, this bill has been in the National Assembly for the last 11 months. It was debated more than two times on the floor of the National Assembly.

It spent several months in two select committees. During all of this, the nation is yet to hear what contributions the Opposition wishes to make to this bill.”

The National Assembly meets tomorrow Monday, February 10, and MPs are expected to consider the report of the Parliamentary Select Committee reviewing the AML/CFT Bill, as well as the bill itself for passage.

On Thursday, February 13, the France-based Financial Action Task Force (FATF) is expected to meet, at which time Guyana could qualify for the International Cooperation Review Group’s (ICRG) evaluation.

CFATF has already designated Guyana as a country with strategic anti-money laundering and countering the financing of terrorism deficiencies, that have not made sufficient progress in addressing the deficiencies, and have not complied with its Action Plan developed with CFATF to address these deficiencies.

The body is expected to review Guyana’s position at its next meeting in May 2014.

The Guyana Bankers Association last Friday reiterated its call for action on the Anti–Money Laundering and Countering the Financing of Terrorism Act (AML/CFT) Bill, ahead of the February 13 meeting of the France-based Financial Action Task Force (FATF).

Prior to that, in a presentation last Wednesday to the Parliamentary Select Committee reviewing the Bill, head of the local body, Mr. Amit Kumar said urgent action is needed to ensure that all of Guyana’s commercial banks are in accordance with acceptable international standards.

Kumar made clear that it is important that Guyana enacts the recommendations of the Caribbean Financial Action Task Force (CFATF), which include amendments to the current law that are “comprehensive and satisfactorily compliant” with all international and domestic requirements.

The statement to the Committee read: “Without the necessary action taken to ensure compliance with the CFATF’s recommendations to enhance Guyana’s AML/CFT framework, there would be far-reaching implications for the financial/banking sector.”

The Bankers’ Association emphasised the need for Members of Parliament to recognise the need for a timely resolution and take “urgent action” to implement the recommendations of the CFATF.

“We the members of the Guyana Association of Bankers remain concerned with the potential consequences of being blacklisted, should Guyana fail to adequately demonstrate progress in implementation of recommendations of the CFATF, including amendment of its AML/CFT legislation prior to the country review in November,” the statement said.

Key western nations – the United States, Britain, Canada and the European Union also issued a statement last Friday, urging Guyana moving towards compliance with international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, including updated legislation and enhanced investigative capacity. “To that end, we have met with all stakeholders, including those from government, opposition, civil society, and the private sector on many occasions since 2012. Our governments are, and will continue to be, actively engaged to support effective implementation of AML/CFT legislation and prosecution of money launderers and financers of terrorism,” said diplomats from the ABCE countries in a joint statement.

Chairman of the Private Sector’s Sub-committee for Trade and Industry, Mr Ramesh Dookhoo has appealed too, during the first steering committee meeting of the National Competitiveness Council, to the members of parliament to resolve the issues hindering passage of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill.

“Much of what we have worked for over the last, maybe 10 years, at the National Competitiveness Council and at other forums with the Government of Guyana can be wasted efforts if what is happening with the Anti-Money Laundering Bill is not resolved.”

President of the Guyana Manufacturing and Services Association (GMSA), Mr Clinton Williams, has also urged Guyana’s Parliamentarians to “cease the dithering” over the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) legislation and consider the effects of the Caribbean Financial Action Task Force (CFATF) blacklisting the nation as a whole.

He warned that “the prognosis for this nation is grim once this parliamentary indecisiveness continues’.

He noted that Guyana has already been blacklisted by CFATF but “Guyanese from every walk of life could be spared the harsher effects of ultimate blacklisting if only our parliamentarians would work with more alacrity to pass the amended Bill….“Members of the Parliamentary Select Committee need not be reminded that harsh penalties are in store for Guyana if/when the country is eventually classified by the international task force as Non-Compliant,”.

Minister of Tourism Industry and Commerce (ag), Irfaan Ali, who was also present at the meeting, added that the non-passage of this Bill can put Guyana in the “state it was 10 years ago”, explaining that the country’s competitiveness will be severely impacted.

“Our attractiveness for bringing in foreign investments will be reduced tremendously, our standing on international rates and international financing rating will be reduced tremendously, the time to process transactions will increase dramatically, and the cost to process transactions will increase dramatically.” He further explained that this means that the cost of goods and services will increase greatly and businesses will not want to invest in, or transact business in an environment where the cost of production is increasing, as well as the time for transactions, and the hurdles for transaction are exponential.

Minister Ali said, too, that the non-passage of the Bill or even a late passage, will create a lot of problems for the country. “Even if the Bill is passed in the future, it will take time, years… to build back the country to where it is at the moment,” he posited.

Bu there seems to be hope and Finance Minister, Dr Ashni Singh said the return of two members of the Opposition to the AML/CFT meeting after they stormed out and missed two meetings earlier this week is evidence that the Opposition is finally responding to the outrage of civil society at their callous and irresponsible attitudes towards issues of national importance.

The Opposition’s return to the meetings is indicative that the APNU and the AFC are “buckling under pressure” from Government, stakeholders and the general public to see this bill to the House on Monday, Dr Singh said. According to him, it would appear that the joint Opposition has exhausted its delay tactics.

President Donald Ramotar has questioned the Opposition’s motives for non-support of the bill – whose interests they are representing, since neither the country’s economy nor its people stand to benefit from the non-passage of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill.

“Who will benefit if this Bill is not passed? Definitively not the Guyanese people…in the first instance it will affect the cost for people in our country doing business with banks abroad… it will also give our country a very bad name and send a message to investors that can negatively impact investments coming to our country,” the Head of State lamented.

Last year when the bill was first proposed to the National Assembly, the Opposition claimed they were being rushed and needed more time, notwithstanding that the bill was in Committee for eight months. It has been 11 months since the original Committee met, yet the AFC and the APNU has not documented their suggestions or recommendations for the bill.

APNU and the AFC have one last opportunity to demonstrate good will to the people of Guyana by working with Government over the weekend to submit the Committee’s report to the House. Dare we hope that the Guyana opposition parties will follow the example set by their Belizean counterparts and put Guyana and its people first by supporting this vital bill?