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    Home»Featured»AML/CFT Compliance and Political Risk : A Cautionary Tale from Guyana
    Featured

    AML/CFT Compliance and Political Risk : A Cautionary Tale from Guyana

    Joel BhagwandinBy Joel BhagwandinNo Comments3 Mins Read78,530 Views
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    Joel Bhagwandin
    Joel Bhagwandin
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    ๐Š๐ž๐ฒ ๐๐จ๐ข๐ง๐ญ๐ฌ
    โ€ข ๐๐„๐ ๐‚๐ฅ๐š๐ฌ๐ฌ๐ข๐Ÿ๐ข๐œ๐š๐ญ๐ข๐จ๐ง: ๐๐ž๐ข๐ง๐  ๐จ๐ง ๐š ๐ฉ๐จ๐ฅ๐ข๐ญ๐ข๐œ๐š๐ฅ ๐ฉ๐š๐ซ๐ญ๐ฒโ€™๐ฌ ๐œ๐š๐ง๐๐ข๐๐š๐ญ๐ž ๐ฅ๐ข๐ฌ๐ญ ๐š๐ฎ๐ญ๐จ๐ฆ๐š๐ญ๐ข๐œ๐š๐ฅ๐ฅ๐ฒ ๐œ๐ฅ๐š๐ฌ๐ฌ๐ข๐Ÿ๐ข๐ž๐ฌ ๐ฒ๐จ๐ฎ ๐š๐ฌ ๐š ๐๐จ๐ฅ๐ข๐ญ๐ข๐œ๐š๐ฅ๐ฅ๐ฒ ๐„๐ฑ๐ฉ๐จ๐ฌ๐ž๐ ๐๐ž๐ซ๐ฌ๐จ๐ง ๐ฎ๐ง๐๐ž๐ซ ๐€๐Œ๐‹/๐‚๐…๐“ ๐ฅ๐š๐ฐ๐ฌ.
    โ€ข ๐Ž๐…๐€๐‚ ๐’๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ฌ: ๐€๐ฌ๐ฌ๐จ๐œ๐ข๐š๐ญ๐ข๐จ๐ง ๐ฐ๐ข๐ญ๐ก ๐š ๐ฉ๐š๐ซ๐ญ๐ฒ ๐ฅ๐ž๐ ๐›๐ฒ ๐š๐ง ๐Ž๐…๐€๐‚-๐ฌ๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ž๐ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ ๐ฌ๐ข๐ ๐ง๐ข๐Ÿ๐ข๐œ๐š๐ง๐ญ๐ฅ๐ฒ ๐ข๐ง๐œ๐ซ๐ž๐š๐ฌ๐ž๐ฌ ๐œ๐จ๐ฆ๐ฉ๐ฅ๐ข๐š๐ง๐œ๐ž ๐ซ๐ข๐ฌ๐ค.
    โ€ข ๐†๐ฎ๐ฒ๐š๐ง๐šโ€™๐ฌ ๐€๐Œ๐‹ ๐‡๐ข๐ฌ๐ญ๐จ๐ซ๐ฒ: ๐ˆ๐ง ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ’, ๐†๐ฎ๐ฒ๐š๐ง๐š ๐ฐ๐š๐ฌ ๐ ๐ซ๐ž๐ฒ-๐ฅ๐ข๐ฌ๐ญ๐ž๐ ๐›๐ฒ ๐…๐€๐“๐… ๐๐ฎ๐ž ๐ญ๐จ ๐ฅ๐ž๐ ๐ข๐ฌ๐ฅ๐š๐ญ๐ข๐ฏ๐ž ๐ง๐จ๐ง-๐œ๐จ๐ฆ๐ฉ๐ฅ๐ข๐š๐ง๐œ๐ž, ๐ง๐ž๐š๐ซ๐ฅ๐ฒ ๐ฅ๐ž๐š๐๐ข๐ง๐  ๐ญ๐จ ๐›๐ฅ๐š๐œ๐ค๐ฅ๐ข๐ฌ๐ญ๐ข๐ง๐ .
    โ€ข ๐๐จ๐ฅ๐ข๐ญ๐ข๐œ๐š๐ฅ ๐‚๐จ๐ง๐ฌ๐ž๐ช๐ฎ๐ž๐ง๐œ๐ž๐ฌ: ๐“๐ก๐ž ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ“ ๐ฌ๐ง๐š๐ฉ ๐ž๐ฅ๐ž๐œ๐ญ๐ข๐จ๐ง๐ฌ ๐ฐ๐ž๐ซ๐ž ๐ญ๐ซ๐ข๐ ๐ ๐ž๐ซ๐ž๐ ๐ญ๐จ ๐š๐ฏ๐จ๐ข๐ ๐›๐ฅ๐š๐œ๐ค๐ฅ๐ข๐ฌ๐ญ๐ข๐ง๐ , ๐ฐ๐ก๐ข๐œ๐ก ๐ฐ๐จ๐ฎ๐ฅ๐ ๐ก๐š๐ฏ๐ž ๐๐ž๐ฏ๐š๐ฌ๐ญ๐š๐ญ๐ž๐ ๐†๐ฎ๐ฒ๐š๐ง๐šโ€™๐ฌ ๐ž๐œ๐จ๐ง๐จ๐ฆ๐ฒ.
    โ€ข ๐†๐จ๐ฏ๐ž๐ซ๐ง๐ฆ๐ž๐ง๐ญ ๐‘๐ž๐ฌ๐ญ๐ซ๐š๐ข๐ง๐ญ: ๐‚๐จ๐ง๐ญ๐ซ๐š๐ซ๐ฒ ๐ญ๐จ ๐œ๐ฅ๐š๐ข๐ฆ๐ฌ ๐จ๐Ÿ ๐ฏ๐ข๐œ๐ญ๐ข๐ฆ๐ข๐ณ๐š๐ญ๐ข๐จ๐ง, ๐ญ๐ก๐ž ๐ ๐จ๐ฏ๐ž๐ซ๐ง๐ฆ๐ž๐ง๐ญ ๐๐ข๐ ๐ง๐จ๐ญ ๐Ÿ๐ซ๐ž๐ž๐ณ๐ž ๐ญ๐ก๐ž ๐ฌ๐š๐ง๐œ๐ญ๐ข๐จ๐ง๐ž๐ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅโ€™๐ฌ ๐š๐ฌ๐ฌ๐ž๐ญ๐ฌ, ๐ญ๐ก๐จ๐ฎ๐ ๐ก ๐ฅ๐ž๐ ๐š๐ฅ๐ฅ๐ฒ ๐ž๐ฆ๐ฉ๐จ๐ฐ๐ž๐ซ๐ž๐ ๐ญ๐จ ๐๐จ ๐ฌ๐จ.
    As long as you are on a political partyโ€™s list of candidates, you have automatically subjected yourself to the highest category of compliance risk under the Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CFT). This classification designates you as a Politically Exposed Person (PEP).
    The AML/CFT Act defines a PEP to include not only the individual but also their family members and close associates. This risk is further heightened if you are affiliated with a political party whose principal founder is the subject of one of the most severe international financial sanctionsโ€”namely, by the Office of Foreign Assets Control (OFAC). A simple Google search reveals that only about 17,000 individuals and entities out of over 7 billion people globally have been sanctioned by OFAC. Clearly, such a designation carries serious and far-reaching consequences.
    ๐†๐ฎ๐ฒ๐š๐ง๐šโ€™๐ฌ ๐€๐Œ๐‹/๐‚๐…๐“ ๐‡๐ข๐ฌ๐ญ๐จ๐ซ๐ฒ
    Guyana was already on the brink of being blacklisted. In 2014, the country was grey-listed by the Financial Action Task Force (FATF) due to national-level breaches in updating the AML legislative framework in line with FATF recommendations. We came dangerously close to being blacklisted. See FATF reference here: https://www.fatf-gafi.org/en/countries/detail/Guyana.html….
    This situation arose under a minority government, where the opposition refused to cooperate in passing the necessary amendments. This legislative deadlock was one of the main reasons for the 2015 snap electionsโ€”to avoid blacklisting. Had we been blacklisted, Guyana could have faced a fate similar to Venezuelaโ€™s: complete exclusion from the international financial system. This would have crippled our ability to pay for imports or export local goods.
    ๐Œ๐ข๐ฌ๐œ๐จ๐ง๐œ๐ž๐ฉ๐ญ๐ข๐จ๐ง๐ฌ ๐€๐›๐จ๐ฎ๐ญ ๐†๐จ๐ฏ๐ž๐ซ๐ง๐ฆ๐ž๐ง๐ญ ๐•๐ข๐œ๐ญ๐ข๐ฆ๐ข๐ณ๐š๐ญ๐ข๐จ๐ง
    The claim that the government is victimizing the sanctioned party and its affiliates is entirely unfounded. In fact, the government refrained from exercising its full authority under the AML/CFT Act. They could have frozen all financial assets of the sanctioned individual immediately upon the OFAC ruling. Instead, they allowed him to close his accounts and withdraw his funds.
    I urge everyone to read the AML/CFT Actโ€”particularly Part IV, Sections 38โ€“66โ€”to understand the legal framework and the governmentโ€™s measured response in respect of the freezing of assets of a sanctioned entity or individual for breaches thereunder.
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