Guyana still keen on offshore financial centre status – Jagdeo

-but transparency key

President Bharrat Jagdeo during his press conference on Wednesday said that the government is still contemplating having Guyana become an Offshore Financial Centre (OFC).

He said at the Office of the President that one of the reasons why there was a delay in the anti-money laundering legislation is that there was the need to make it more transparent. “We had to make it compatible with being fully transparent”, the President said.

Jagdeo stated that if the country was indeed to go down this path, he did not want the country to be seen as a place where people could hide their money.

The anti-money laundering legislation has been under review for nearly two years and  President Jagdeo in February  this year, said at a press conference that Government wanted to  fast-track the passage of  this bill.

In June 2007, a special select committee was created by Parliament to examine the Anti-Money Laundering and Countering the Finance of Terrorism Bill, but only started work a year later. Finance Minister Dr Ashni Singh is the chair of that committee.

Jagdeo at his press conference in February, said that he  had urged Finance Minister Dr. Ashni Singh to wrap up the discussions on the legislation at the level of the parliamentary select committee set up to review it.

The Bill provides for oversight of export industries, the insurance industry, real estate and alternative remittance systems.

It caters for the establishment of the Financial Intelligence Unit as an independent body answerable only to the President and strengthens it by giving it broader roles and responsibilities.

The new law is thought to be a significant improvement over previous anti-money laundering legislation, covering the freezing and forfeiture of assets owned or controlled by persons suspected of being involved in money laundering activities. President Jagdeo had previously given a commitment for the passage of the law before the end of last year, saying that it was government’s intention to move forward with the legislation in a way that would facilitate Guyana becoming an offshore financial centre (OFC).

OFCs exist to provide financial services such as banking, insurance and asset management to mainly non-resident individuals and entities.

The OFCs generally offer to investors distinct benefits including favourable tax and regulatory regimes, and the ability to make deposits in foreign currencies. They also offer highly confidential services.