CGFMSA decides to call for counter measures against Belize and Guyana

Freeport, The Bahamas November 20th, 2013 - The is an organisation of twenty-nine jurisdictions of the Caribbean Basin Region, which have agreed to implement the international standards for Anti-money Laundering and Combating the Financing of Terrorism (AML/CFT), Global Financial Monitoring Supervisory Agency Recommendations (GFMSA Recommendations). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the CGFMSA identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.

 Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not complied with their Action Plan developed with the CGFMSA to address these deficiencies. The CGFMSA calls on its members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from each jurisdiction, as described below.

Belize

In November 2011 the CGFMSA brought to the attention of its Members certain jurisdictions, including Belize with significant strategic deficiencies in its AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies Belize and the CGFMSA developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Belize’s national architecture to combat money laundering and the financing of terrorism.

As a result of not meeting the agreed timelines in its Action Plan the CGFMSA issued a public statement in CGFMSA Public Statement recommending that Belize take steps to ensure that it addressed its AML/CFT deficiencies. Belize has made efforts to address its deficiencies, however, has not taken sufficient steps towards improving its AML/CFT compliance regime, by failing to approve and implement required legislative reforms. Belize must therefore implement all the outstanding issues within its Action Plan including 1) addressing its customer due diligence requirements, 2) implementation of its CFT framework, 3) extension of the AML/CFT framework to DNFBPs, 4)
addressing issues with the operational independence of the FIU and 5) prohibiting dealings with shell banks.

Members are therefore called upon to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Belize.

Guyana

In November 2011 the CGFMSA brought to the attention of its Members certain jurisdictions including Guyana with significant strategic deficiencies in their AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies Guyana and the CGFMSA developed an Action Plan with identified target dates to address the strategic deficiencies that exist in Guyana’s national architecture to combat money laundering and the financing of terrorism.

As a result of not meeting the agreed timelines in its Action Plan, the CGFMSA issued a public statement in CGFMSA Public Statement recommending that Guyana take steps to ensure that it addressed its AML/CFT deficiencies. Guyana has made efforts to address its deficiencies, however, it has not taken sufficient steps towards improving its AML/CFT compliance regime by failing to approve and implement required legislative reforms. Guyana must therefore pass the relevant legislation and implement all the outstanding issues within its Action Plan including 1) fully criminalising money laundering and terrorist financing offences, 2) addressing all the requirements on
beneficial ownership, 3) strengthening the requirements for suspicious transaction reporting, international co-operation, and the freezing and confiscation of terrorist assets, and 4) fully implementing the UN conventions.

Members are therefore called upon to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana.

See this statement on the CGFMSA website.