Regulators of financial sector have failed Guyanese

Dear Editor,
According to the World Bank, COVID-19 has resulted in the “deepest global recession in decades”, which resulted in the recession of developing countries, loss of labour efficiency, and a general reduction of economic development.
The effect of tightening the noose of COVID-19 is not strange to Guyana, as many businesses were forced to lay off staff and even slash remuneration for entry-level employees. The above is ignoring any effect that the five-month election declaration had on the country’s reaction to the virus, and the ability to rebound even remotely.
Lo and behold, erupted the widely successful investment firm named Accelerated Capital Firm Inc (ACFI). The firm is incorporated as a company in Guyana, and asserts to be regulated by the International Financial Market Relations Regulation Center (IFMRRC). The objective of the firm is, “To ensure that 100% of our members are in a significantly better financial position than they were when we first met. Seeing our members being educated, enriched and empowered in the financial markets is our passion, and the reason why we continue to strive for their satisfaction.”
And they have been doing exactly that! At least 30 persons have highlighted to me the ACFI is the best decision they have made in the longest time. The business, according to my understanding, has two criteria, one involves the investment of a sum of at least G$100,000, which guarantees a return of 40%; and two: a further return if the investor recruits at least 3 persons to invest as well.
Absolutely nothing sounds wrong with that. On the face of things, investing in this sounds foolproof; the more persons you encourage to join, the more returns for you; and the more persons they encourage to join, the better for those persons.
Assuming 3 persons invest in the scheme and encourage 3 persons to invest, who then encourage 3 persons to invest. Just imagine how strong and how much returns would have been created.
Well, there is no need to imagine, as approximately 17,000 Guyanese have invested, and stand to lose because of the promises made by ACFI. Putting that in terms of dollars, assuming half of the 17,000 invested the minimum requirement of G$100,000 monthly, this represents monthly cash of G$850M (circa USD4.1M).
Hundreds of those 17,000 have seen returns on investment that they would have never seen possible from working a normal 9-5, or even starting their business, but the vast majority of those 17,000 persons stand to lose their hard-earned money. ACFI is no more than a fraud that has been allowed to prey on the hard-working Guyanese.
But may I ask what was done by the regulators? AFCI has been registered in Guyana since late last year, and has been soliciting persons to invest since the beginning of the year. I remember that on the genesis of the AFCI’s stardom, I was asked by my employer to contact the Bank of Guyana and Securities Council on this issue, and they had absolutely no clue about who regulated the firm and whom I should contact for more information.
ACFI has been allowed to collect funds on the pretence of investing these funds, and have not, until recently, been the subject of any investigation by the Bank of Guyana, Securities Council, Guyana Revenue Authority, or any other regulator in Guyana. The fact that they have been allowed to become this large and this strong reflects nonchalant regulatory financial environment in Guyana. This needs to stop.
For a firm/individual to be able to invest on behalf of persons in Guyana, adequate licences are required. These are issued by the Bank of Guyana; and currently, there are just about five places that are licensed to carry on this type of business.

Correcting the wrong
I humbly submit that all is not lost, and mistakes happen. However, this must not be allowed to continue. The regulators have an ability to right this wrong. This exists in the purported traders of foreign exchange and educators of the subject.
According to Bloomberg, the foreign exchange market approximated a US$6.6 trillion a day industry at the end of 2019. Traders of foreign exchange stand to benefit if they make the right decisions. In Guyana, there is an expanding number of “traders” of foreign exchange and “educators” of potential traders.
Persons in a similar fashion to ACFI invest an amount of money, and are provided returns as well as a top-up whenever they bring in more persons into the loop of investors. Some schemes represent themselves as educating persons on the path to financial freedom, and have again been doing exactly that.
I am not asserting that all forex trading is wrong and all persons who are involved in forex trading are being dishonest, but the fact of the matter is that there is no active regulation of the individuals, and all persons involved stand to lose in the same way that persons stand to lose with ACFI.
The relevant regulators should review the persons who carry out these types of businesses, to ensure that they are licensed, qualified, and compliant with all relevant regulations related to operating in Guyana.
Please act now before it becomes too late.
The views and opinions expressed in this letter are solely that of the author, and are not an indictment on the hardworking people of Guyana

Yours faithfully,
Raan Motilall