Anti-Money Laundering commission, stiff penalties proposed in new AML/CFT Bills

…commission to ensure compliance with laws

The People’s Progressive Party/Civic (PPP/C) Government will be bringing two Bills to the National Assembly, intended to boost Guyana’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) fight, including one that will establish a commission to ensure compliance with money laundering laws.
Drafts of the Compliance Commission Bill and the AML/CFT (Amendment) Bill were recently released by Attorney General Anil Nandlall. They are inviting recommendations from the public ahead of Guyana’s upcoming Caribbean Financial Action Task Force (CFATF) mutual evaluation.
In the Compliance Commission Bill, the creation of a three-person commission is proposed to supervise AML/CFT practices. Specifically, the commission will maintain a general review of designated non-profit organisations, non-bank and non-financial institutions or professions. Examples of non-bank and non-financial entities run the gamut from pension funds to charities.
This general review will encompass on-site and offsite examinations of these designated places, as well as investigations, to ensure compliance with anti-money laundering laws. The commission would also be empowered to demand AML/CFT-related records from the entities being reviewed.
“Any person failing or refusing to produce any record or to supply any information or explanation as is required by subsection (1), commits an offence and is liable on summary conviction to a fine not less than one hundred thousand dollars to no more than fifty million dollars or to imprisonment for a term not exceeding three years or to both such fine and imprisonment,” the Bill states.
The commission may also order these organisations to hire an auditor and submit audited financial statements. Any entity that obstructs an auditor commits an offence that can lead to both a $20 million fine or five years’ imprisonment.
The Bill would also empower the commission, when specified by the Minister, to issue licences and registration to these entities. Failure to register is an offence under the Bill, carrying a fine of between $10 million and $25 million – or five years’ imprisonment.
There are also penalties for entities not reporting who their beneficial owners are. According to Section 51(1) of the Bill, “Every reporting entity is required to provide accurate and up to date beneficial ownership information to the Commission. When a reporting entity has a change in registered office or principal place of business; or has a change in beneficial ownership, director, partner, compliance officer or money laundering reporting officer, the reporting entity shall within one month of such change, notify the Commission.”
It goes on to state that “where a reporting entity fails to notify the Commission as required under subsection (1), the reporting entity commits an offence and is be liable to a penalty of two hundred thousand dollars for each failure to notify in accordance with subsection (1).”
The three-member commission shall be appointed by the subject Minister and hold office for no more than three years, with the possibility of reappointment. A Chief Executive Officer and Deputy CEO is also to be appointed to serve at the direction of the commission.
Guyana’s AML/CFT framework will be undergoing its fourth round of mutual evaluation in September by CFATF. In preparation for that exercise, the Government will be tabling the two Bills in the National Assembly.
This will be done to implement outstanding recommendations of the CFATF and the Financial Action Task Force (FATF), as well as correct deficiencies identified and overall, strengthen Guyana’s AML/CFT framework. (G3)