Private Sector, Govt must collaborate to make financial crimes unprofitable – FIU head

The Private Sector Commission (PSC) hosted an illicit trade seminar on Wednesday, with the Government of Guyana, through the Financial Intelligence Unit (FIU), acknowledging the need to work with businesses to ensure financial crimes are no longer financially feasible.

The Illicit Trade seminar was held at the Marriott Hotel, bringing together participants from relevant agencies and security services, as well as private sector representatives. One such agency is the FIU, an important body that receives reports of financial crimes and forwards them to the relevant law enforcement agencies.
Director of the FIU, Matthew Langevine stressed the need for a robust anti-money laundering framework is crucial to ensure legitimate businesses are protected. He noted that this is dependent on the government working with the private sector and ensuring that there is no profit incentive for smuggling and illicit trade.
“The importance of maintaining a robust anti-money laundering framework, is critical towards maintaining the right climate for legitimate businesses to thrive. This is particularly important for a country like Guyana, that is on a significant growth trajectory given the emergence of our oil and gas sector,” the director said.
“Government must therefore continue to support our private sector, as regards continuing to address the threats and challenges faced by businesses, by actors involved in illicit activities, including illicit trade and trade-based money laundering. Ultimately, we have to work together to take the profit out of crime in whatever form it is practiced.”
Langevine also provided some insights into the reports his unit has received over the last four years. Of these reports, less than 10 per cent of those reports referred for further action, were related to illicit trade.
“The FIU received, on average, about 180 suspicious transaction reports from entities, over the last four years. A very small percentage, I would say not more than 10 per cent, of these referrals were associated to illicit trade. There have been some cases, including smuggling, which were analyzed and referred for further action by the relevant law enforcement agency,” Langevine explained.

Collaboration
During the seminar, PSC Chairman Komal Singh also spoke of the importance of collaboration between the state and the private sector. As a matter of fact, the PSC has sought to do just that, such as setting up an illicit trade desk to receive complaints regarding this scourge, and forward them to authorities.

“The expectation of this illicit trade desk, is simply to forge collaboration with the stakeholders and also to create a stronger relationship with the enforcement arms of the government. We recognize that the enforcement arm of the government is doing quite a bit of work at the moment.”
While he lauded the work done by agencies like the Guyana Revenue Authority (GRA) to catch smugglers, Singh noted that any info collected and forwarded by the PSC through its help desk will go towards enhancing the work of these agencies and reducing the amount of time and effort it takes them.
“As a result of that, the illicit trade desk of the private sector will be a desk that will gather these data, tabulate them properly, make sure we have all the requisite data and when we’re satisfied this information is properly put together, we’re going to then engage the respective agency,” Singh explained.
According to the PSC Chairman, Guyana is losing billions of dollars in revenue to illicit trade. And with the market share being lost to smuggling being as significant as it is, urgent action is necessary.
Agencies such as the GRA, have been making waves for operations against illicit trade and smuggling. In April of this year, four persons were arrested following the interception of a wooden vessel laden with a quantity of spirituous liquor, Heineken Beers and Rockingham Chicken at Annandale, East Coast Demerara (ECD). In addition, two minibuses were seized. The operation was executed by Customs Law Enforcement Officers of GRA
Back in August 2022, GRA intercepted and seized three motor vehicles that were each carrying a large quantity of uncustomed chicken at Cane Grove, Mahaica, East Coast Demerara. Four persons were arrested and charged.
Earlier in that month, a motor vessel laden with a large quantity of foreign liquor and other uncustomed items was intercepted and seized at the Abary foreshore in Region Five (Mahaica-Berbice). That vessel was being operated by three men, who were arrested even as they attempted to evade the law enforcement authorities.
Apart from that incident, another motor vessel and a minibus, both laden with large quantities of foreign alcoholic beverages, cigarettes and other uncustomed items, were intercepted and confiscated at the koker at Number 43 Village, Corentyne, East Berbice. Five persons were arrested in that operation, and they were later charged.
The GRA has been urging the public to refrain from smuggling activities, highlighting that it deprives legitimate businesses and the government of revenue. According to Section 218 of the Customs Act, Chapter 82:01, “smuggling is illegal, and anyone who attempts to import or export goods with intent to defraud the Revenue Authority of any duties is guilty of an offense and is liable for fines and/or imprisonment.” (G3)