CFATF Assessment: Govt responding to preliminary report – AG Nandlall

Following the on-site assessment in September of this year, the team from the Caribbean Financial Action Task Force (CFATF) has produced its preliminary report, which the Guyana Government is in the process of reviewing, and will respond to.

This was revealed last week by Attorney General and Legal Affairs Minister Anil Nandlall during his programme – Issues in the News.
The on-site assessment was conducted from September 4 to September 15, 2023, during which the CFATF team interviewed a number of Government Ministries, law enforcement agencies, State agencies, financial institutions, as well as the private sector and professional organisations.
At the conclusion of the assessment of Guyana’s compliance with the Financial Action Task Force (FATF) Recommendations and Methodology, it was reported that Guyana had scored favourably.
According to AG Nandlall, this has been reflected in the preliminary Mutual Evaluation report that was sent for the Guyana Government’s review and input.
“That preliminary report was received by us and, again, I’m to the report that we scored reasonably well and the assessment was favourable. But the protocols provide that we are to engage with the assessors in relation to the report and we have an opportunity to add, to question, to interrogate or to comment if we feel that some part of the report does not accurately reflect what the position as we understand it to be here in any one of the agencies that were examined in the assessment,” the Attorney General noted.
Nandlall further stated, “So, we are in the process of doing so. That process will be completed by the end of November and then a final report will be issued [by the CFATF team] and that final report will be handed to us and will be reviewed at the next plenary of the CFATF, which is scheduled to take place in March… [where] Guyana’s final report will be reviewed discussed and debated at that plenary.”
During the September on-site visit, the CFATF Assessment Team was led by the Financial Advisor of the CFATF, Avelon Perry, who was assisted by Co-Mission leader Legal Advisor of the CFATF, Sunita Ramsumir. The other members of the Assessment Team were regional professionals in the AML/CFT/CPF Framework including Financial Assessor in the Cayman Islands, Shana Donavan; Law Enforcement Assessor in Grenada, Teron Greenidge; Financial Assessor in Dominica, Nikala Bazil, and Legal Assessor, Cassandra Seetahal.
The initial high-level findings found that Guyana has good coordination for the identification and mitigation of money laundering/terrorist financing risks through the NCC. It also acknowledged the risk assessments Guyana has concluded, including the 2021 National Risk Assessment, and its wide dissemination among stakeholders.
The support of these actions through the National Policy and Strategy was also examined, and found to be acceptable due to the completion of a number of policy items, such as amendments to key AML/CFT-related legislation, the legislative creation of the Guyana Compliance Commission and the Real Estate Agents’ Authority, and the codification of the Special Branch Anti-Terrorism Task Force.
With regard to supervisory authorities, the initial findings found that most of these authorities demonstrated a risk-based approach, as well as the use of preventative measures. The team also noted the support that the Financial Intelligence Unit (FIU) plays in providing guidance for supervisory authorities.
Among the shortcomings noted in the initial findings is the need for attorneys-at-law and accountants to fully understand their AML/CFT obligations, which is particularly important with the Guyana Compliance Commission law being passed.
There is also a need for a unified approach in tackling money laundering by the various law enforcement agencies, however, it was seen that Guyana was investigating money laundering and associated serious offence cases in line with the country’s risk assessment; however, the delay in the administration of cases may have contributed to the current low conviction rate for money laundering.
With regard to international cooperation, the team found that there was a need for increased resources for the Treaty Office Ministry of Home Affairs to effectively carry out its functions; however, Guyana has demonstrated the ability to use formal and informal mechanisms for international cooperation, particularly through its regional mechanisms such as ARIB-CARIB and the Regional Security System (RSS).
In terms of targeted financial sanctions for terrorism financing and proliferation financing, the team noted that the recent 2023 amendments have cured some of the technical deficiencies; nevertheless, due to the recent passage of the laws there may be a need to revise internal procedures in the implementation of such.
However, the Assessment Team had noted that these findings may change upon further review of information submitted, which will be further assessed.
The final discussions with regard to the 4th Round Mutual Evaluation of Guyana is due to be concluded in May/June 2024 at the CFATF Plenary, which will be held in Trinidad and Tobago.