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.