Money transfer bill referred to select committee

The Money Transfer Agencies (Licensing) Bill was the week before last referred to a Special Select Committee for detailed consideration.

The bill, which was tabled by Minister of Finance, Dr Ashni Singh seeks to provide for the licensing of persons carrying on the business of money transfer agencies and will also make provision for the registering of money transfer agents and for connected purposes.

“We are of the view that the bill would benefit from detailed consideration in a special select committee and I therefore wish to move that the bill be read a second time and the bill referred to a special select committee,” Singh said in moving for the bill to be referred to committee.

With the approval of the National Assembly, the bill was read a second time and then referred to the committee.
The explanatory memorandum of the bill says that it seeks to provide an effective administrative, operational and legal framework for the conduct of the business of money transfers.

It provides that applications for a licence must be submitted to the Bank of Guyana, which may grant or refuse to grant such a licence. A licensee under the dealers in Foreign Currency (Licensing) act or any related holding company subsidiary or other affiliate of the licensee is ineligible for the grant of a licence under this act.

Clause 5 states that a licence expires on December 31 of every year and if a person wishes to renew it, that person must do so before January 15 of the following year.

Clause 6 provides that a licensee can only conduct the business of money transfers on the premises named in the application for the licence. Clause 7 and 8 make provisions for a person, who after obtaining a written agreement form a licensed agency, to make application to be registered with the bank as a money transfer agent.

Clauses 9, 10, and 11 confer on the Bank the principal regulatory responsibility of licensing conditions, suspensions and revocations and rights. Clause 12 gives the licensee and the money transfer agent the right to conduct the business of money transfer.

Clause 13 provides that all persons dealing with money transfer agencies or a money transfer agent must be provided with receipts of any transactions conducted between that person and the licensed agency of the money transfer agent.

Clauses 14 and 15 provide for the licensee and money transfer agent to maintain proper accounts and to furnish any information required by the Bank. Clause 16 confers on the Bank the right to inspect the operations of licensed agencies and money transfer agents and require the production of books, records and other information.

Clause 17 provides for violations of the provisions of the act. Clause 18 gives the Bank the power to make regulations and to issue guidelines or notices for the carrying out of the provisions of the act.

The proposed bill comes at a time when the number of money transfer agencies and money transfer agents is increasing. The act, when passed is to come into operation on a date appointed by the minister by order.