Loopholes in Guyana’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act, which is aimed at combatting suspicious financial transactions will soon be addressed as two pieces of amendments will be tabled in the National Assembly, Attorney General Anil Nandlall stated.
Nandlall on Tuesday night, during his weekly televised programme “Issues in the News” made the disclosure as he spoke of the collaboration between Guyana and the Regional Security System (RSS) body, currently assisting in investigating the recently reported money laundering crimes.
“They identified gaps in the Guyana AML/CFT landscape. We have begun to work immediately in correcting those gaps. They have offered us recommendations and we are working to implement those recommendations in the form of legislative amendments,” Nandlall informed.
At the time, he was speaking of his recent meeting with a visiting delegation from the RSS. During the meeting, Nandlall noted that the team identified gaps in the existing law, which is being used prosecute and investigate money laundering activities.
The AG explained that these amendments will strengthen Guyana’s AML/ CFT legislation to fight financial crimes.
He further stated that through the RSS collaboration, they will also seek to have investigators from the Special Organised Crime Unit (SOCU) benefitting from training opportunities to improve their capabilities and efficiency.
“They have engaged with SOCU and they offered technical assistance whenever requested and they also have said that they will offer attachment programmes, whereby SOCU officers can go to the RSS and do attachments with them to enhance their capacity and training …of course, we will take advantage of that offer.”
The Minister of Legal Affairs had requested the assistance of the RSS Asset Recovery Unit (ARU) to assist in high-profile money laundering cases currently being probed by SOCU.
Quite recently, SOCU instituted charges against a Herstelling, East Bank Demerara family of three under the AML/CFT act and recently issued wanted bulletins for eight persons.
The family was charged for allegedly laundering billions to 22 companies in China.
The joint money laundering charges against the trio were laid under Section 3 (1) (a) of the Anti-Money Laundering and Countering the Financing of Terrorism Act Chapter 10:11. A summary of all the charges read that they knowingly, or having reasonable grounds to believe that the cash in question, whether in whole or in part, directly or indirectly, represented proceeds of crime, and that they converted or transferred the cash in question knowing, or having reasons to believe that the said cash is the proceeds of crime, did so with the aim of concealing or disguising its illicit origin.
According to the head of SOCU, Assis-tant Commissioner Fazil Karimbaksh, reports reaching his unit indicated that the trio conducted multiple suspicious transactions at several financial institutions in Guyana, raising concerns that they may be involved in money laundering activities. He disclosed that his suspicions were based primarily on the large number of unsubstantiated cash deposits made via Kenneth’s business accounts of Ken’s Trading Enterprise.
Furthermore, the Sources of Funds declarations were submitted to several commercial banks which showed that most of the deposits are attributed to sales proceeds from biodegradable food boxes sold to local businesses, particularly Chinese restaurants. Karimbaksh said that a substantial number of wire transfers, amounting to over $3.7 billion were sent to twenty-two companies in China under the pretext of importing raw materials to produce bio-degradable products, while other sums were disguised locally, overall, totalling over $4.1 billion.
