What is Money Laundering?
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.
