CFATF ramps up warning against Guyana on money laundering
At its just concluded meeting in Miami, Florida, the Caribbean Financial Action Task Force, called CFATF, once more cited Guyana for failing to rectify certain deficiencies in its anti-money laundering legislation. A Parliamentary Special Select Committee is yet to conclude its work on the changes that needs to be made to the legislation.
The CFATF is an organisation of twenty-seven jurisdictions of the Caribbean Basin Region.
In order to protect the international financial system from money laundering and risks to the financing of terrorism, CFATF identified Guyana as one of the countries that have strategic deficiencies.
As a result of not meeting the agreed timelines in its Action Plan, the CFATF said Guyana has failed to make significant progress in addressing deficiencies in its legislation and called on its members to implement further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana. The body has now also referred the country to the international Financial Action Task Force.
According to the task force, Countermeasures could entail, among others, 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 the country concerned, or otherwise taking into account the fact that the relevant financial institution is from a country that does not have adequate anti-money laundering systems and limiting the business relationships or financial transactions with the identified country or persons in that country.