The delegation includes, Dr. Gobind Ganga, Governor of the Central Bank, Mr. Matthew Langevine, Director of the Financial Intelligence Unit (FIU), Ms. Alicia Williams Head of Compliance -FIU, Mr. Karim Baksh – Head of the Special Organized Crime Unit (SOCU), Ms. Natasha Backer – Assistant Director of Public Prosecutions and Mr. Rommel St Hill, Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) Officer in the Attorney General’s Office.

Due to the Covid 19 pandemic this is the first Plenary and Working Group meetings by this body since November 2019. The Plenary which opens on Wednesday November 30, 2022, will follow the working group meetings such as the Heads of FIU forum, a working group of FATF issues, International Cooperation Review Group, Steering Group, and CFATF Risks Trends and Methods Group.

At these meetings, countries who are in the assessment process get the opportunity to discuss key issues identified in their Draft Mutual Evaluation Report; countries that have already been assessed under the fourth-round process provide updates on progress made since their evaluation; delegates are provided updates on outcomes for the FATF various meetings, and on new and emerging money laundering threats in the region.

These meetings also provide opportunities for member states to discuss the implementation of new recommendations and strategies and difficulties that may arise in relation thereto. Cooperation and the building of institutional relationships for exchange of information that may assist in new or ongoing investigations are enhanced. Guyana’s attendance at these meetings is very important, especially as the country prepares for its fourth-round mutual evaluation which is scheduled for 2023. It gives the delegates the opportunity to benefit from the discussions of the mutual evaluation of two of its close neighbors, Suriname and Venezuela whose Reports are currently being discussed and will be featured prominently at the Plenary. Both countries have been flagged with various identified deficiencies.

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In addition to a reporting entity’s obligation to submit reports to the FIU, the Anti-Money Laundering and Countering the Financing of Terrorism legislation imposes a number of other obligations on reporting entities.

These other obligations include:

• Carrying out an assessment of the money laundering and terrorist financing risk your entity may reasonably expect to face.
• Appointing an AML/CFT compliance officer or designating a person to carry out the entity’s compliance function.
• Designing, implementing and maintaining an AML/CFT compliance programme that sets out procedures, policies, and internal controls for, among other things:
  • screening and training of all employees;
  • carrying out due diligence on customers (CDD) – includes customer identification and verification;
  • undertaking monitoring and enhanced due diligence for high risk customers;
  • reporting suspicious transactions (STRs);
  • submission of terrorist property reports (TPRs);
  • effective record-keeping;
  • ongoing risk assessment and risk management and risk mitigation programmes, including risk assessment for new products, business practices and delivery mechanisms; and
  • keeping update to date with new or developing technologies for new and pre-existing products or services.
• Ensuring independent audits and reviews of your entity’s Risk Assessment and AML/CFT Programme are conducted.
• Ensuring that AML/CFT related training is provided to all persons involved in the management of your entity as well as key staff on an ongoing basis.
• Maintaining record of verification of identity of customers; record of customers transactions; as well as a register of ML/TF enquires by the FIU, the Special Organised Crime Unit or other competent authority.
• Ensuring that AML/CFT related training is provided to all persons involved in management of the entity as well as key staff on an ongoing basis.
• Where applicable, reporting entities (financial institutions and money transfer agencies) should obtain the originator or sender’s information and other relevant information for all electronic funds-transfers facilitated by the entity.
• Maintaining records or a register of ML/TF enquires made by the FIU, the Special Organised Crime Unit (SOCU) or any other competent authority.

All records must be kept by the reporting entity for seven (7) years from the date the relevant transaction was completed, or from the date the business relationship with the customer was terminated, whichever is later.  All records must also be capable of retrieval in readable form without undue delay.

The post Issue No. 9: Other obligations of a Reporting Entity appeared first on Finance Intelligent Unit (Guyana).

Information received, accessed, processed, in the possession of or disseminated by the FIU is subject to strict confidentiality laws and safety measures.

Safety mechanisms for the exchange and use of information are in accordance with the Operational Policies and Procedures for FIUs internationally as prescribed by the Egmont Group FIUs. These Operational Procedures and Policies specify clear rules governing the security and confidentiality of information in possession of and shared by the Unit, including disciplinary measures and criminal liability for unlawful disclosures.

The staff members of the FIU are required to undergo various levels of security clearance based on their responsibilities and the need for access to and use of the sensitive and confidential information received and/or possessed by the Unit.

Generally, access to the FIU’s facilities, information and IT systems is restricted to authorized personnel only.

PROTECTION FOR REPORTING ENTITIES FOR DISCLOSING INFORMATION TO THE FIU

Reporting entities are protected by law from criminal and civil liability for the breach of any restriction on disclosure of information imposed by contract or by any legislation,  provided the report is made in good faith by a Compliance Officer or some other duly authorized officer. This exemption is protected whether or not the Officer knows the underlying criminal activity or whether a crime has actually occurred.

TIPPING OFF

Tipping off is the act of alerting a customer, person or entity that a report was or is about to be filed with the FIU or that there is an ongoing investigation pertaining to that customer, person or entity. It is an offence for a person who knows or suspects that a suspicious transaction report or related information has been or will be reported to the FIU, to divulge that fact to another, whereby the investigation is likely to be prejudiced.

PENALTY FOR THE OFFENCE OF TIPPING OFF

Section 5(2) of the AMLCFT Act (2009) stipulates the penalties for the offence of tipping off as follows:

• A fine of one million dollars; and
• Imprisonment for three years.

The post Issue No. 8: Protection of information with the FIU appeared first on Finance Intelligent Unit (Guyana).

Reporting entities are required to submit the following reports to the FIU:

• Threshold transaction reports;
• Suspicious transaction reports; and
• Terrorist property reports.

WHAT ARE THRESHOLD TRANSACTION REPORTS (TTRS)?

TTRs are reports of transactions conducted by customers of reporting entities that meet pre-determined limits/ thresholds.  For example, any cash (or non-cash in some specific instances) transaction (single or accumulated) facilitated by a reporting entity for a customer within a month that meets the following threshold limit:

TTRs are required to be submitted by the 7^th of each month following the month in which the transaction(s) occurred.

WHAT IS A SUSPICIOUS TRANSACTION REPORT (STR)?

A STR is a report which reporting entities are required to submit to the FIU, whenever they suspect or have reasonable grounds to suspect that funds or a transaction (attempted or completed) are connected to the proceeds of a criminal activity, money laundering, terrorism or terrorist financing offences.

A STR must be submitted to the FIU as soon as possible but not later than three days after the suspicion has been formed by the reporting entity.

 WHAT IS A TERRORIST PROPERTY REPORT (TPR)?

A TPR is required to be submitted by reporting entities to the FIU, whenever they have knowledge that funds or other assets in their possession are for a person or entity that is listed on the United Nations Security Council Resolution (UNSCR) 1267 Sanctions List or listed or specified by order of the Minister of Finance in accordance with section 2(2) of the AMLCFT Act 2009. This is based on knowledge that these persons have been linked directly or indirectly to terrorists, terrorist activity, or the financing of terrorism.

These reports are required to be submitted to the FIU immediately (without delay) after the person has been identified as having the beforementioned association.

The post Issue No. 7: Types of reports the FIU receives appeared first on Finance Intelligent Unit (Guyana).

The Guyana Revenue Authority (GRA) is required to send reports of Declaration of International Transportation of Currency hereinafter referred to as “Foreign Currency Declaration Report” to the FIU.

WHAT IS A FOREIGN CURRENCY DECLARATION REPORT?

A foreign currency declaration report is a report prepared by the GRA based on the Declaration of International Transportation of Currency forms it receives from travellers carrying foreign currency amounting to more than US$10,000 or its equivalent in any other currency, into or out of Guyana.

WHEN AND WHERE SHOULD YOU MAKE A FOREIGN CURRENCY DECLARATION?

A person is required to make a foreign currency declaration once they are carrying foreign currency amounting to more than US$10,000 or its equivalent in any other currency out of or into Guyana. The Foreign currency declaration forms are available at all international airports and border/ferry crossings in Guyana.

International Airports include:

• Cheddi Jagan International Airport – Timehri, and
•  Eugene Francis Correia International Airport – Ogle

Border/Ferry Crossings include:

• Border Crossing – Guyana/Lethem
• Ferry Crossing – Guyana/Suriname

ARE THERE PENALTIES FOR FAILURE TO DECLARE OR FALSE DECLARATION?

Yes. Failure to make a declaration as required under section 36 of the AML/CFT Act or section 6 of the Foreign Exchange (Miscellaneous Provisions) Act Cap. 86:01 is an offence.

Additionally, it is an offence under section 6(5) of the Foreign Exchange (Miscellaneous Provisions) Act Cap. 86:01 to knowingly make a declaration that is untrue.
Penalties upon conviction may include the following:

• A fine of two hundred and fifty thousand dollars;
• Imprisonment for six months; and
• Forfeiture of currency found on the person or in the baggage of the traveller in respect of which a declaration was not made.

The post Issue No. 6: What is a foreign currency declaration report? appeared first on Finance Intelligent Unit (Guyana).

SPECIAL ORGANIZED CRIME UNIT (SOCU)

SOCU is a unit of the Guyana Police Force, designated with responsibility for ensuring that money laundering, terrorist financing and other financial crimes are fully and thoroughly investigated. Based on the findings of their investigations, the Unit may make recommendations to the Director of Public Prosecutions (DPP) for appropriate charges to be filed against the subject(s) of the investigation.

HOW DOES THE SOCU FUNCTION UNDER GUYANA’S AML/CFT REGIME?

DIRECTOR OF PUBLIC PROSECUTIONS (DPP)

The Director of Public Prosecutions (DPP) is the constitutional office responsible for instituting and undertaking all criminal prosecutions (including money laundering and terrorist financing) against any person or entity in respect of any offence against the laws of Guyana.

HOW DOES THE DPP FUNCTION UNDER GUYANA’S AML/CFT REGIME?

The post Issue No. 5: List of Supervisory Authorities and their respective Reporting Entities appeared first on Finance Intelligent Unit (Guyana).

The purpose of the Act is to, among other things, provide for unlawful proceeds of all serious offences to be identified, traced, frozen, seized and forfeited.  All citizens of Guyana have a moral obligation to assist in deterring and preventing of money laundering and the financing of terrorism. The AML/CFT Act, however, imposes specific obligations on certain agencies/entities.

The following agencies have special roles and obligations under the AML/CFT legislation:

• Reporting Entities (REs)
• Financial Intelligence Unit (FIU)
• Supervisory Authorities (SAs)
• Special Organized Crime Unit (SOCU)
• Director of Public Prosecution (DPP)
• AML/CFT and Proliferation Financing National Co-ordination Committee
• Other competent authorities (Guyana Revenue Authority, Commercial Registry, Deeds Registry, etc.).

Who is a Supervisory Authority?

A Supervisory Authority is a body or organization designated and responsible for regulation and oversight towards ensuring that reporting entities are compliant with the requirements of the AML/CFT Act and its objectives to combat money laundering and terrorist financing.

A Supervisory Authority is authorized by the AMLCFT Act to engage in the following:

• Conduct AMLCFT examinations, training, regulation, and general oversight, of Reporting Entities
• Enter the business premises of a reporting entity to carry out AML/CFT inspections
• Request and receive information relevant to ML and TF from a reporting entity
• Impose sanctions on a reporting entity for failure to comply with AML/CFT obligations

The range of sanctions that a supervisory authority can impose on a reporting entity that breaches its AML/CFT obligations include:

• Issuing written warnings;
• Ordering compliance;
• Ordering regular reports;
• Prohibiting convicted person(s) from employment by the reporting entity;
• Directing reporting entity to remove defaulting officers from its board;
• Recommending to the appropriate licensing authority (where the supervisor is not the licensing authority) suspension, restriction or withdrawal of reporting entity’s license.
• Imposition of fines between five to fifteen million dollars.

The post Issue No. 4: Measures to prevent Money Laundering and Terrorist Financing appeared first on Finance Intelligent Unit (Guyana).

Money laundering is the act of disguising the source or true nature of money obtained illegally. The crime of money laundering is also associated with other serious offences.

What is a serious offence?

A “serious offence” is an offence against any law in Guyana, for which the maximum penalty is death or imprisonment for life or other deprivation of liberty of not less than six months. See the AML/CFT Act 2009 for the full legal definition.

Some serious offences that are applicable to the crime of money laundering in Guyana include the following:

• Drug Trafficking    
• Fraud
• Insider trading
• Terrorism
• Smuggling
• Tax evasion
• Terrorist financing 
• Robbery or theft
• Corruption and bribery

What are some of the consequences of money laundering?

Money laundering has significant economic and social consequences, especially for a developing country like Guyana.   These macro and micro economic consequences include:

• Increase in Organized Crime and Corruption
• Undermining of the Legitimate Private Sector
• Weakening of Financial Institutions
• Deterrent to new Private Investment
• Loss of Control or Mistakes in Decisions Regarding Economic Policy
• Economic Distortion and Instability
• Loss of Tax Revenue
• Reputational Risk for the Country
• Risk of International Sanctions

What is Terrorist Financing?

Terrorist Financing is the activities that provide financing or financial support, with the unlawful intention or knowledge that they are to be used in the following ways:

• to carry out terrorist acts;
• by a terrorist organization; or
• by an individual terrorist.

What is the consequence of terrorist financing?

Terrorist activities of various forms are the consequences of terrorist financing.        

What are proceeds or crimes?

Proceeds of crime means any property that is derived from or obtained, directly or indirectly, through the commission of a serious offence. The proceeds of criminal activities can be channeled into the economy through numerous different channels, including the financial system.

The post Issue No. 3: What is Money Laundering? What is a serious offence? What are some of the consequences of money laundering?… appeared first on Finance Intelligent Unit (Guyana).

The FIU was established in August 2009 under the Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Act of 2009. This Agency is responsible for requesting, receiving, analysing and disseminating information related to suspicious transactions and other information relating to money laundering, terrorist financing or proceeds of crime. This information is received from reporting entities.

WHAT IS A REPORTING ENTITY?

A reporting entity is any person or entity carrying out any of the businesses, professions or activities listed in the First Schedule of the AML/CFT Act of 2009 and includes the following:

1. Licensed Financial Institutions

• Banks
• Non-Bank Financial Institutions
• Money Transfer Agencies
• Cambios
• Insurance Companies and Brokers
• Securities Companies and Brokers

2. Designated Non-Financial Businesses of Professions

• Casinos
• Lotteries
• Betting Shops
• Dealers in Precious Metals (Gold Dealers)
• Dealers in Precious and Semi-Precious Stones (Diamond Dealers)
• Real Estate Agents, Brokers and Developers
• Attorneys-at-Law, Notaries, and Commissioner of Oaths to Affidavit
• Accountants and Auditors
• Trusts or Company Service Providers

3. Other

• Credit Unions
• Co-operatives
• Registered Charities
• Pawnbrokers
• Used Car Dealers

The FIU’s mission is to assist in the protection of our financial system through the detection, prevention and deterrence of money laundering and the financing of terrorist activity in Guyana.

WHAT IS THE STRUCTURE OF THE FIU?

The structure of the FIU includes a Director, a Deputy Director, an Attorney-at-law; and an Accountant, all appointed by the National Assembly by a simple majority; and on the recommendation of the Parliamentary Committee on Appointments.  The FIU staff is complemented by professionals in the field of AMLCFT Compliance, Financial Analysis, Database Management and Information Technology, and Office Administration.

HOW IS THE FIU FUNDED?

The FIU is funded by sums appropriated by Parliament.  The Director is responsible for the control and use of all funds and resources and is required to keep proper accounts and other records. The Director is also required to prepare yearly statements of accounts to be audited by the Auditor General.

HOW DOES THE FIU OPERATE?

The post Issue No. 2: What is the FIU? What is a Reporting Entity? What is the structure of the FIU? How is the FIU funded? How does the FIU operate? appeared first on Finance Intelligent Unit (Guyana).

Money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction (WMD) are pervasive problems affecting countries globally.  These problems pose serious threats to the economic growth and development, and social stability of affected nations.

Guyana is no exception and must therefore comply with international standards to combat these threats to its financial system.

The international standards for combating money laundering and the financing of terrorism and the proliferation of WMD are set by the Financial Action Task Force (FATF).

WHAT IS FATF?

FATF is a global inter-governmental body that was established in 1989 by a group of 7 nations. This body has now grown to 37 members.  It also has 23 observer organizations and 9 Associate Members or FATF Styled Regional Bodies (FSRBs) which have similar form and functions to those of the FATF.

WHAT IS CFATF?

The Caribbean Financial Action Task Force (CFATF) is one of the FSRBs.  It is an organization of 25 states of the Caribbean, South and Latin America which have agreed to implement common counter-measures against money laundering and terrorist financing.

Guyana became a member of CFATF in 2002.  Since obtaining membership with the CFATF, Guyana passed legislation to support the fight against money laundering and terrorist financing.

THE FIU

One very important measure that was introduced was the establishment of the Financial Intelligence Unit (FIU). It is the central unit that receives financial information and reports such as suspicious transactions, threshold transactions, foreign currency declarations etc., from relevant entities.

The post Issue No. 1: What is FATF, and the CFATF? appeared first on Finance Intelligent Unit (Guyana).