THE combined Opposition last evening rejected an amendment to the nation’s Customs Laws that has seen Guyana’s obligations to the Caribbean Community’s (CARICOM) revised Treaty of Chaguaramus being flouted; and according to Attorney General Anil Nandlall, leaves the country open to being “shafted.”

In the House yesterday, from left, Attorney General Anil Nandlall, APNU’S Carl Greenidge, Minister Irfaan Ali (backing camera) and Minister Clement Rohee

Attorney General Anil Nandlall in the House yesterday

“Guyana has been taken to court over the matter,” she reminded, adding that with removing the discriminatory provision, it will be another step in the direction of promoting the country as place for investment.
Alliance for Change (AFC) Leader, Khemraj Ramjattan, who vehemently voiced his party’s objection to the provisions in the law, said that in his meetings with the Private Sector, they had expressed their objection to the law.
He said that in the face of calls for deferrals, government was still willing to move ahead with the legislation.
Several government speakers to the debate reminded the House that the amendments had been tabled and continuously deferred for the past five months.
The presenters said that no proposals have been forthcoming from the Opposition during that time and queried what would change should the Opposition have its way with another deferral.
Ramjattan maintained that government was only interested in taxes and said that with the increase to be applied on local producers, it will affect the Guyanese consumers.
Attorney General and Minister of Legal Affairs, Anil Nandlall said that government is not unaware of the implications for local producers and consumers, but said that it was something that the country could no longer stave off.
This, he said, is a reality that accompanies signing on to treaties and reminded the House that Guyana is a founder member of the Treaty of Chaguaramus that created CARICOM.
Every country in CARICOM has adjusted their laws to be compliant with the provision, said Nandlall.
“We know it will cause some hardship on local manufacturers…We are also well aware of the disparity in cost of production (across member states),” said Nandlall, and sought to impress on the House that this is the very reason why government has for several years sought to defer the matter.
“We simply ran out of excuses,” said Nandlall and reminded also that with the Caribbean Court of Justice, there is now a place where violations of treaty obligations can be enforced.
“The wriggle room quickly evaporated,” said Nandlall, and reminded the House also that the Surinamese beverage company, Rhodesia, has already taken Guyana to court over the ‘discriminatory tax.’
Responding to Opposition requests for the matter to be deferred again, Nandlall said, “the truth of the matter is this Bill has been here since January…five months, how many months do you want to consult.”
He said that government is well aware of the fact that the local producers are not happy with the legislation, “we are not happy either, but that is the cost of entering into treaty… this is not government driven, this has to do with discharging our obligations under the treaty.”
Nandlall said too that in relation to the matter against Guyana over the tax, he has tendered the amendments to the law as evidence in the matter.
“If as a country we will say to the world at large that in this House we are not going to comply with our obligations, then we have to make our position clear to the outside world….We in this Assembly don’t have much of a choice…We can withhold our support and live with the consequences .”
He said that the House will flex its sovereign muscles, but we “will be shafted as a country.”
The Attorney General remarked that if the country is not willing to abide by its obligations to the Treaty of Chaguaramus then, “it is either we stay in CARICOM or exit CARICOM.”
With the refusal of the legislation by the combined Opposition, in the face of the threat of repercussions at the Caribbean Court of Justice, the amendments to the law cannot be returned to the House until after the next general elections.
Other speakers to the debate in the House included former Labour Minister, Manzoor Nadir and APNU’s Joseph Harmon.

US Ambassador Brent Hardt.

United States Ambassador to Guyana, Brent Hardt on Tuesday said even if Guyana had amended its financial crimes law, the South American country still risked being blacklisted for doing nothing to prosecute money launderers.

“I think even if legislation had been passed, it would have been still an uphill battle for Guyana because, as we (US) noted in our narcotics report of last year, from the passage of legislation in 2009 to the present time, there have not been any money laundering investigations,” he told Demerara Waves Online News (www.demwaves.com) after the opening of a three-day workshop for journalists.

Hardt had previously told the privately-owned nightly television news, Capitol News, that the anti-money laundering system lacked a vitally necessary entity to spearhead probes in collaboration with the Financial Intelligence Unit (FIU) and the prosecutors.

“You need something between the FIU and the prosecutor to investigate and that’s what has been lacking,” he said. The top American diplomat explained that usually a task force is established to process information and intelligence from that the FIU, Customs Anti Narcotics Unit and the Guyana Police Force. Observations of inexplicable wealth in the form of properties that is not reflected on tax submissions could form part of any money laundering probe, he said.

He on Tuesday explained to DemWaves thatthe crucial ingredient was not only the 2009 Anti Money Laundering and Countering of Financing Terrorism Act (AML/CFT) but the required system to enforce the law.

“When CFATF looks at the whole regime,

it is the structure in place-that’s critical and that’s important-

but also what’s happening with that structure?

Is that structure being used to conduct investigations, to go after potential money launderers who are out there,” he said.

The opposition A Partnership for National Unity (APNU) and the Alliance For Change (AFC) have similarly criticised government for lacking the political will to prosecute suspected launderers of ill-gotten cash.

Hardt hoped that after the lawmakers would have completed their work, Guyana would have a better framework to prevent money laundering and acquire the institutional capacity “to conduct serious investigations and go after some of the money launderers and big drug dealers.”

Guyana had been set a deadline of May 27 by which the AML/CFT Act would have been amended in keeping with CFATF recommendations. Much to the anger and disappointment of the Donald Ramotar administration, the opposition has insisted that it needed more time to study the proposed amendments in detail in the Parliamentary Select Committee.

Attorney General, Anil Nandlall is this week leading a team to Nicaragua to lobby the Caribbean Financial Action Task Force (CFATF) against deeming Guyana a non-cooperative jurisdiction. The CFATF’s recommendations are expected to feed into a meeting of the global financial crimes watchdog- the Financial Action Task Force (FATF).

The American envoy here said there was no precise idea about how the blacklisting of Guyana would affect ordinary persons. “It would depend on the individual and the nature of their business relations. If they have a lot of international transactions or dependent on money from abroad, they might find it’s a bit more complicated, it takes a little longer,”  he said.

Asked specifically if incoming money transfers could slow up, Hardt said “there would be greater scrutiny of transactions coming into and out of Guyana” which could add to increased operational costs.

While Guyana would “not grind to a halt,” Hardt said being blacklisted could be “painful” for government, business and banks.

An amended AML/CFT act would empower 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.

GUYANA was examined at the Caribbean Financial Action Task Force (CFATF) meeting on May 27 in Nicaragua, as was expected,and according to Attorney General

Attorney General, Anil Nandlall briefs the press on the Nicaragua meeting

In reporting to the media yesterday on Guyana’s mission, he said, “the people who are doing this assessment…they have very little time for the little political games we are playing here. They have a very strict regime that they use, you either meet the deadline or you don’t meet the deadline. If you have not met the deadline, why haven’t you met the deadline? If they believe that you have demonstrated bona fides and commitment, they give you a second chance. If you don’t meet the deadline on the second occasion, that’s it! They are absolutely unconcerned about what is going on in Guyana’s Parliament and who believes there is a constitutional crisis and who wants a procurement commission…they couldn’t  care less about these things…they have a task to perform, they have certain criteria that have to be met and if you don’t meet them, then you face the consequences. They are very unattached to the political ramifications and nuances which are taking place in Guyana. ”
The team outlined progress made outside of the legislative changes, the minister reported. “This included the hiring of additional staff; the establishment of supervisory authorities, to supervise and monitor the activities of all money transfer agencies, financial institutions, credit unions, and all the other agencies which they had recommended.”
In addition, the CFATF, in their own report, said that 90% or more of the recommendations which they have made are of a legislative nature. Guyana in turn submitted to the Taskforce that the Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Bill captures these.
CFATF agreed that the bill does capture the recommendations, about 90% of them Minister Nandlall said, and added that the CFATF was also told that the bill has been laid in the National Assembly.
“We explained of course the configuration of the National Assembly and that the government does not enjoy the majority…that a motion was moved from the floor by the Opposition that the matter be sent to select committee. We explained of course that the government objected to it, explaining the exigencies of the time constraints that we are under in relation to this matter. Notwithstanding our best pleas, a vote was taken from the floor and the matter was referred to select committee. At the select committee, of course, we outlined the government’s every effort in the committee to expedite the hearing and we explained why the hearings of the select committee were not concluded before the deadline date.”
The minister said that the Guyana team also outlined the Opposition’s several requests, which were conceded to, because they involved provision of documents etc., but they wanted public hearings and they wanted submissions to come from members of the public and interested stakeholders.
“We renewed and restated the government’s absolute commitment to ensure that this legislation is passed in keeping with the recommendations, but that we are however, basically at the mercy of the Opposition because they control the National Assembly. As a result, they appreciated government’s effort thus far, and the progress made, and they said that they are giving us until the November meeting to get that done,” Minister Nandlall stated.
He emphasized, however, that in this regard, “it doesn’t mean that we have to wait until November. We have to get this thing completed for the November meeting, and a period of time has to be given for them to examine the legislation to see that it conforms to the recommendations. Of course, I am aware of an impending Parliamentary recess which is to take place in mid-August for nearly a month that will take us way into September. I hope we can complete the consideration of this Bill and have it passed by the National Assembly before Parliament goes into recess so that we have sufficient time to send it to them so that it can be assessed,” he said.
He explained that Dominica and Belize were both granted extensions until the June meeting; Dominica, because their legislation was passed late, and Belize because that country had just had national elections.
Dominica, the AG said, was not removed from consideration, because the CAFTF said very clearly that they needed time to assess the BILL to see that Dominica has conformed.
“This point demonstrates that we have to do it within sufficient time, that we don’t lay back and wait until November, that we begin to work as early as possible and have it concluded before Parliament goes into recess,” Minister Nandlall said.
Aghast
Regarding the Alliance for Change’s (AFC’s) call for a report on the Nicaragua meeting, the AG said, “I am reporting here, if the AFC wants more information, I guess they would write and ask. I don’t know what more information they would want,” the minister stated.
He added, “The Leader of the Opposition wrote to the Managua meeting, and I observed that he didn’t give a commitment. Though he says that the Opposition appreciates the importance of effecting the amendments, he didn’t say that the Opposition is committed to have it passed within the time frame. He went on to deal with a host of other issues, most of which are irrelevant to the passage of the legislation. He speaks of compromises and other areas which are wholly unconnected with it.”
Minister Nandlall explained that many persons to whom he spoke privately at the meeting “were aghast and absolutely shocked that the opposition is taking the position that they are taking in Guyana. No one can really fathom how such an important issue can be made to be a political issue when it is the national interest that is involved; there are many other issues which you can play politics with. The meeting itself was quite surprised that the Opposition in the Guyanese Parliament is taking the position which it has taken.” (GINA)