Finance Ministry outlines consequences for Guyana following blacklisting by CFATF

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Finance Minister, Dr. Ashni Singh
Finance Minister, Dr. Ashni Singh

[www.inewsguyana.com] – The Ministry of Finance in a statement which outlines the far reaching implications for Guyana having been blacklisted by the Caribbean Financial Action Task Force (CFATF) for failing to enact the Anti-Money Laundering and Countering the Financing of Terrorism (AMD/CFT) Amendment Bill said the incident is most unfortunate.

The Ministry said the move by CFATF to encourage its member countries to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana will severely affect Guyana’s credibility in the International Community.

“International business relations with Guyana will be subjected to intense scrutiny which inevitability will become bureaucratic and costly for investors. Such environments will undoubtedly detour investor interests and ultimately limit Guyana’s marketability” the statement added.

The statement noted that other countries which have been blacklisted have responded differently based on their unique economies but how Guyana’s economy responds will only be determined in time.

According to the Ministry what is known is, regardless of Guyana’s current economic state, the consequences of the warning issued by CFATF are far reaching.

 

According to the Ministry the Consequences are as follow:

 

1.  Persons who receive remittances/ cash via money transfer systems, may experience delays in receiving the transfer. There may also be an increased processing fee resulting from additional paperwork.

 

2.  Proof of income and identification of the sender of such remittances will be enhanced. Persons most likely to be affected by this are undocumented aliens who reside abroad.

 

3.  The transfer of money from local to external banks will be delayed as international banks begin to severe ties locally.

 

4.  This delay in bank transfers or severing of financial ties with local banks can affect fuel prices and ultimately the cost for travel and commodities.

 

5.  Local businesses may experience delays in the shipment of goods as additional paperwork will be required to prove that a business is legitimate and not a shell company laundering monies or financing terrorism.

 

6.  Enhanced scrutiny will be implemented to verify the source and destination of all monies.

 

7.  Persons who shop online and use debit and credit cards to conduct such transactions may find their transactions are denied or delayed.

 

8.  Insurance services (fire, life, mortgage etc), most of which depend on reinsurance from abroad, are also expected to experience delays, additional filing of paperwork and possibly increased fees.

 

The Ministry concluded that the implications of Guyana not complying with the CFATF requirements will undoubtedly affect the country’s social and economic development.

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