IMF lauds Guyana’s efforts following reviewing visit

FATF monitoring list

Following a recent visit to assess Guyana’s economic development, the International Monetary Fund (IMF) mission has lauded the country’s efforts in being removed from the Financial Action Task Force’s (FATF’s) monitoring list.
This is according to the Private Sector Commission (PSC) on Friday. The Commission said that this was related in the Staff Statement from IMF, with which the Commission met on March 16, 2017 as part of the Fund’s Article IV Consultations.

“The Private Sector Commission fully endorses the IMF’s commendation of the Government of Guyana’s sterling efforts, which resulted in the country being released from the monitoring list of the international Financial Action Task Force,” the entity said.
It noted that the PSC worked closely with Government’s legal team to finalise the Anti-Money Laundering and Countering the Financing of Terrorism Bill. The passage of this Bill, the PSC noted, was a major factor considered in the release from FATF monitoring, and the efforts of the Attorney General’s Chambers should be applauded.
Nevertheless, the Commission noted that much remains to be done to strengthen Guyana’s AML/CFT framework and bring it in line with global standards. The achievement of being released from the FATF’s monitoring list is a very significant accomplishment, which has taken other countries years to achieve.
“The entire private sector has benefited from this, with a reduction of the stringent controls which stymied their ability to conduct international transactions, and generally to conduct their business,” the PSC stated in the release.
The Private Sector added that the IMF Staff Statement was, on the whole, quite encouraging in its assessment of Guyana’s financial oversight framework, as evidenced by the Bank of Guyana’s supervisory framework and guidelines which contribute to the health of our financial system.
During its meeting with the IMF mission, the PSC raised a broad spectrum of issues which currently engage its attention, and expressed satisfaction with the current Government’s operationalising of the Public Procurement Commission (PPC) and facilitation of Local Government Elections (LGE), which had not been held for many years. However, at the same time, concerns were expressed over instances of sole sourcing of contracts, which have occurred despite the existence of the Procurement Commission.
Additionally, the decline in the value of the Guyana dollar was also discussed, with the IMF representatives suggesting that a flexible exchange rate was ideal because it would allow the currency to revalue itself in response to market forces.
Moreover, in response to questions from the Mission as to the cause of a loss of investor confidence, the Private Sector Commission pointed to increased taxation and a degree of uncertainty in regard to the direction in which the economy is moving.
Nevertheless, the representatives of the Private Sector Commission indicated their willingness to cooperate with Government in the national interest, and to assist in helping to right the economy.
During the meeting, with the PSC officials, the IMF team observed that the private sector is indeed the catalyst for growth, and plays a crucial role in job creation.