On June 11, 2024, a press release from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that they had “sanctioned…Nazar Mohamed and his son, Azruddin Mohamed; their company: Mohamed’s Enterprise…for their roles in public corruption in Guyana. Additionally, OFAC designated two other entities, Hadi’s World and Team Mohamed’s Racing Team, for being owned or controlled by Mohamed’s Enterprise and Azruddin, respectively. These individuals and entities are sanctioned pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.”
The reasons for the sanction were stated: “Azruddin and Mohamed’s Enterprise evaded Guyana’s tax on gold exports and defrauded the Guyanese Government of tax revenues by underdeclaring their gold exports to Guyanese authorities. Between 2019 and 2023, Mohamed’s Enterprise omitted more than 10 thousand kilograms of gold from import and export declarations and avoided paying more than (US)$50 million in duty taxes to the Government of Guyana.”
The release continued, “In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.”
Two days after the release, the Bank of Guyana revoked the licence of Confidential Cambio, owned by the Mohameds, to buy or sell foreign currency; the Guyana Gold Board (GGB) revoked the Mohameds’ gold dealership licence and Pres Ali announced that all Govt transactions with the Mohameds and their companies were suspended.
In late May of this year, Azruddin Mohamed announced he would launch a party to contest the Sept 1 elections and on June 20, filed nomination papers for the “We Invest in Nationhood” (WIN) party, with himself as presidential candidate. One month later, Demerara Bank decided to close the accounts with their institution held by WIN candidates. Its CEO explained, “Anybody who has a relationship that poses a compliance risk with the bank, we have an obligation under the AML (Anti-Money Laundering) legislation to take action and de-risk and that comes with international correspondent bank guidelines.”
After two WIN candidates publicly said they were “unclear” why their accounts were closed, the Demerara Bank CEO replied: “If they had read all the provisions of international compliance legislation and protocol dealing with an individual that was sanctioned by OFAC (Office of Foreign Assets Control), then they should be very clear.” OFAC’s aforementioned press release had stipulated that any individual who provided services to a sanctioned individual could themselves be subjected to sanctions. WIN candidates are providing services for the election of Azruddin Mohamed. GBTI and Citizens Bank have since followed Demerara Bank’s lead.
On July 31, WIN dubbed the banks’ “Gov footstools” and called for a boycott of “Demerara Bank, GBTI, Demerara Distillers Limited (DDL) and all their goods and services, The Beharry Group and all its subsidiaries, goods, and services, KFC (and) Pizza Hut.” Their release was issued before Citizens Bank’s announcement and their corporate affiliates such as Banks and Demico would also be boycotted.
The Georgetown Chamber of Commerce and Industry (GCCI) and the Guyana Manufacturing and Services Association (GMSA) all expressed the sentiments articulated by the Private Sector Commission (PSC) statement condemning the WIN boycott call:
“This call is reckless, inflammatory, and both politically and economically irresponsible. Let us be absolutely clear: the Private Sector in Guyana is not an arm of the State. Our members make decisions based on their internal risk assessments, legal obligations, and the best interests of their shareholders, employees, and clients. These companies operate fully within the framework of Guyana’s laws and international regulations. We categorically reject any attempt to bully or coerce the Private Sector into political conflicts”.
This newspaper also unequivocally supports this statement.
