A recent evaluation of Guyana’s anti-money laundering and counter-terrorism financing (AML/CFT) systems reveals significant progress but highlights ongoing challenges.
The report was published by the Caribbean Financial Action Task Force (CFATF) following an on-site visit in September 2023.
Guyana was commended for efforts in conducting comprehensive risk assessments across various sectors, including non-profit organizations and virtual asset providers.
However, it also identifies critical areas needing improvement, such as enhanced coordination among law enforcement agencies and more robust supervision of non-financial businesses.
The findings underscore the need for continued focus on strengthening legislative frameworks and international cooperation to combat financial crimes effectively.
Key Findings:
The evaluation highlights several key findings:
Significant Risk Assessments Conducted: Guyana has undertaken multiple risk assessments since 2017, including those targeting the extractive industries and legal arrangements. However, the assessment of the extractive industries was not finalised before the report’s completion.
Legislative and Policy Advances: The country has made strides in updating its AML/CFT legislation and national policies, although there are noted deficiencies in the areas of new technologies and the transparency of legal persons.
Challenges in Terrorist Financing Framework: While there is a strong legislative framework against terrorist financing, the report points out shortcomings in the implementation of targeted financial sanctions and the freezing of assets. Additionally, there is a need for more specialized training for prosecutors and the judiciary in handling terrorism-related cases.
Need for Better Coordination Among Agencies: The report emphasises the need for improved coordination and cooperation among domestic law enforcement agencies, particularly in conducting parallel investigations into money laundering and associated predicate offenses.
Inconsistent Use of Confiscation Measures: Guyana pursues asset confiscation as a policy objective but lacks consistency in its application. There is also no clear mechanism for managing and repatriating confiscated assets.
Supervisory Gaps: The report notes that while financial institutions generally understand their AML/CFT obligations, there is inadequate supervision of certain sectors, including attorneys-at-law and credit unions. Enhanced risk-based supervision is necessary to ensure compliance across all sectors.
These findings highlight the ongoing need for Guyana to strengthen its financial crime prevention measures, particularly in the face of emerging threats and the country’s expanding oil and gas industry.
Editor’s Note: Read the full report below:
cftaf_4th_Rnd_MER_Guyana_Revised[1].pdf
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