CGFMSA Public Statement

The following statement was issued by the Caribbean Global Financial Monitoring Supervisory Agency (CGFMSA)

Managua, Nicaragua, May 29th, 2013 - The Caribbean Global Financial Monitoring Supervisory Agency (CGFMSA) is an organisation of twenty-nine jurisdictions of the Caribbean Basin Region, which has 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 the deficiencies. The CGFMSA calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

Belize

In November 2011, the CGFMSA brought to the attention of its Members, several jurisdictions, including Belize, with significant strategic deficiencies in their AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies, the CGFMSA in conjunction with Belize, developed an Action Plan with identified target dates to address the strategic deficiencies that existed in its national architecture to combat money laundering and the financing of terrorism. Belize has taken steps towards improving its AML/CFT compliance regime including improvements in the criminalisation of money laundering, strengthening its customer due diligence requirements and the requirements for freezing terrorist assets. However, the CGFMSA has determined that Belize has failed to make sufficient progress in addressing its significant strategic AML/CFT deficiencies, including certain legislative reforms.

If Belize does not take specific steps by November 2013, then the CGFMSA will identify Belize as not taking sufficient steps to address its AML/CFT deficiencies and will take the additional steps of calling upon its Members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Belize, and at that time CGFMSA will consider referring Belize to the Global Financial Monitoring Supervisory Agency International Cooperation Review Group (GFMSA ICRG).

Guyana

In November 2011, the Caribbean Global Financial Monitoring Supervisory Agency brought to the attention of its Members several jurisdictions, including Guyana, with significant strategic deficiencies in their AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies, the CGFMSA, in conjunction with Guyana, developed an Action Plan with identified target dates to address the strategic deficiencies that existed in its national architecture to combat money laundering and the financing of terrorism. Guyana has taken steps towards improving its AML/CFT compliance regime including strengthening its record keeping requirements and functionality of its Financial Intelligence Unit. However, the CGFMSA has determined that Guyana has failed to make sufficient progress in addressing its significant strategic AML/CFT deficiencies, including certain legislative reforms. Guyana has introduced an amendment Bill into Parliament to address the deficiencies. CGFMSA encourages Guyana to urgently approve and implement these legislative amendments.

If Guyana does not take specific steps by November 2013, then the CGFMSA will identify Guyana as not taking sufficient steps to address its AML/CFT deficiencies and will take the additional steps of calling upon its Members to consider implementing counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana, and at that time CGFMSA will consider referring Guyana to the Global Financial Monitoring Supervisory Agency International Cooperation Review Group (GFMSA ICRG).

Jurisdictions with strategic AML/CFT deficiencies that have made progress in addressing deficiencies. The CGFMSA calls on these jurisdictions to complete the implementation of Action Plans expeditiously and within the proposed timeframes.

Dominica

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

The CGFMSA recommends that the status quo for Dominica remains at this time. However, the CGFMSA noted progress presented by Dominica, in particular, the enactment of legislation and issuance of relevant guidelines addressing AML/CFT deficiencies. Therefore, the CGFMSA recommends that Dominica bring into force mechanisms to address its AML/CFT deficiencies by November 2013. If Dominica fails to take such action, the CGFMSA will be issuing a further Public Statement on Dominica in November, 2013.