The recent call by the Private Sector Commission (PSC) for support of the Anti-Money Laundering and Countering the Financing of Terrorism (AMLCFT) Bill echoes the concerns raised by all stakeholders, including this publication, regarding the impact on Guyana’s economy should these vital pieces of legislation be delayed further.
Guyana’s political stakeholders cannot afford at this time to play politics with this important legislation and it is incumbent upon civil society to continue to put pressure on our leaders to rise above partisan interests and pass the legislation as soon as possible.
It could be recalled that Guyana had missed the August 26 deadline that was set by the Caribbean Financial Action Task Force for the enactment of the bill, as the government and the opposition were unable to reach consensus on the bill. However, an extension was granted until November and it is still not clear as to whether the country will meet that new deadline.
On its part, the government had accused the opposition of dragging its feet on the legislation at the level of the Special Parliamentary Select Committee and believes that the opposition might be plotting their next move on how to blame the administration for the country’s failure to enact the bill.
On the other hand, Opposition Leader David Granger says that his party would not be rushed into passing legislation just to satisfy the government’s desire. He was quoted as saying that the A Partnership For National Unity (APNU) is in the process of taking evidence from stakeholders, noting that the Financial Intelligence Unit, which will be responsible for implementing the bill, once passed, has received severe criticisms since its establishment some four years ago.
Whatever the case is, the political players must do all that is necessary and have the legislation passed in order to escape sanctions. Experts have warned that the consequences of such a delay will transfer to the common man.
One example of these consequences will be felt by recipients of remittances because financial institutions will be subjected to intensified scrutiny and increased penalty fees for operating in a non-compliant country. Those increased fees will be incurred by the consumer.
From all indications, some countries have already begun to beef up sanctions as a result of Guyana’s failure to pass the AMLCFT bill. For example, the Trinidad and Tobago Central Bank has issued a letter to the commercial banks in Trinidad and Tobago regarding doing business with Guyana and engaging in foreign currency transactions. According to the PSC, the cautionary letter has caused TT companies to increase scrutiny of Guyanese companies with which they do business.
Further, many questions will be raised about the legitimacy of Guyanese companies and their transactions, which were previously routine and normal. This will result in a burdensome process for transactions such as purchasing a foreign currency draft, which now requires the completion of lengthy forms and the carrying out of a due diligence procedure for each transaction.
With the slow progress on addressing the deficiencies in the anti-money laundering act, the PSC believes that correspondent banks will further increase their queries regarding customer transactions. As a result, the cost of doing business will rise as companies attempt to offset losses due to increased restrictions and delay.
That being said, we believe that the administration has made exhaustive efforts to involve and accommodate the opposition via a number of attempts to meet as frequently as possible in the Select Committee of the National Assembly to discuss the bill. Government has also offered to meet with the opposition in the committee on two occasions thus far but those efforts have been futile.
We join with local stakeholders and the international community in calling for both the government and the opposition parties to stop the blame game and work together in the nation’s interest to have the AMLCFT bill passed, taking into considering the November deadline.
As stated by Finance Minister Dr Ashni Singh, this is necessary as it will demonstrate to international banks and lending agencies that Guyana’s financial system is credible, stable and accountable.
