BACKGROUND
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.
