VZCZCXRO3768
RR RUEHGR
DE RUEHGE #1183/01 3122029
ZNR UUUUU ZZH
R 082029Z NOV 06
FM AMEMBASSY GEORGETOWN
TO RUEHC/SECSTATE WASHDC 4377
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC

UNCLAS SECTION 01 OF 02 GEORGETOWN 001183 
 
SIPDIS 
 
JUSTICE FOR AFMLS, OIA, AND OPDAT 
TREASURY FOR FINCEN 
EB/ESC/TFS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN KCRM KTFN GY
SUBJECT: 2006-2007 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT 
(INCSR) PART II: GUYANA 
 
REF: STATE 157000 
 
GEORGETOWN 00001183  001.2 OF 002 
 
 
¶1. The following text is post's narrative for Part II of the 
2006-2007 International Narcotics Control Strategy Report, Financial 
Crimes and Money Laundering for Guyana. 
 
BEGIN TEXT: 
 
¶2. Guyana is neither an important regional or offshore financial 
center, nor does it have any notable offshore business sector or 
free trade zones. However, the scale of money laundering is thought 
to be large relative to the size of the economy, with some experts 
estimating that the informal economy is forty to sixty percent of 
the size of the formal sector. Money laundering has been linked to 
trafficking in drugs, firearms and persons, as well as to corruption 
and fraud. Drug trafficking and money laundering appear to be 
benefiting the Guyanese economy, particularly the construction 
sector. Investigating and trying money laundering cases is not a 
priority for law enforcement. The Government of Guyana (GOG) made no 
arrests or prosecutions for money laundering in 2006 due to a lack 
of adequate legislation and sustained attention by the government. 
 
¶3. The Money Laundering Prevention Act passed in 2000 is ineffective 
due to inadequate implementing regulations, difficulties associated 
with finding suitable personnel to staff the Financial Intelligence 
Unit (FIU) and the Bank of Guyana's lack of capacity to fully 
execute its mandate. Crimes covered by the Money Laundering 
Prevention Act include narcotics trafficking, illicit trafficking of 
firearms, extortion, corruption, bribery, fraud, counterfeiting and 
forgery. The Act does not specifically cover the financing of 
terrorism in its schedule of prescribed offences. The law also 
requires that incoming or outgoing funds over $10,000 be reported. 
Licensed financial institutions are required to report suspicious 
transactions, although banks are left to determine thresholds 
individually according to banking best practices. As of October 
2006, the FIU has received approximately one hundred suspicious 
transaction reports since its inception, around 60 of which came in 
the past year. Financial institutions must keep suspicious activity 
reports for six years. The legislation also includes provisions 
regarding confidentiality in the reporting process, good faith 
reporting, penalties for destroying records related to an 
investigation, asset forfeiture, tipping off and international 
cooperation. 
 
¶4. The GOG established a Financial Intelligence Unit (FIU) within 
the Ministry of Finance in 2003. The FIU is currently a one-person 
organization. Building on assistance from U.S. funding through July 
2005, the GOG currently funds the FIU. In addition to the FIU, 
government bodies responsible for investigating financial crimes 
include the Guyana Revenue Authority, the Customs Anti-Narcotics 
Unit, the Attorney General and the Director for Public Prosecutions. 
 
 
¶5. The Money Laundering Act of 2000 provides for seizure of assets 
derived as proceeds of crime, including money, investments and real 
and personal property, but the guidelines for implementing 
seizures/forfeitures have not been finalized. The FIU has prepared 
drafts of legislation related to terrorist finance and money 
laundering. The new legislation is also expected to provide for 
oversight of export industries, the insurance industry, real estate 
and alternative remittance systems. The draft money laundering act 
failed to make the legislative agenda before the dissolution of 
Parliament in May 2006. 
 
¶6. The Ministry of Foreign Affairs and the Bank of Guyana (the 
Central Bank) continue to assist U.S. efforts to combat terrorist 
financing by working towards coming into compliance with relevant 
United Nations Security Council Resolutions (UNSCRs). In 2001 the 
Bank of Guyana, the sole financial regulator as designated by the 
Financial Institutions Act of March 1995, issued orders to all 
licensed financial institutions expressly instructing the freezing 
of all financial assets of terrorists, terrorist organizations, 
individuals and entities associated with terrorists and their 
organizations. Guyana has no domestic laws authorizing the freezing 
of terrorist assets, but the government created a special committee 
on the implementation of UNSCRs, co-chaired by the Head of the 
Presidential Secretariat and the Director General of the Ministry of 
Foreign Affairs. To date the procedures have not been tested, as no 
terrorist assets have been identified as located in Guyana. The FIU 
Director also disseminates the names of suspected terrorists and 
terrorist organizations listed on the UN 1267 Sanctions Committee's 
consolidated list to relevant financial institutions. 
 
¶7. Guyana is a member of the OAS' Inter-American Drug Abuse Control 
 
GEORGETOWN 00001183  002.2 OF 002 
 
 
Commission (OAS/CICAD) Experts Group to Control Money Laundering. A 
2003-2004 CICAD review of Guyana's efforts against money laundering 
noted deficiencies in implementation, resources and the legal 
framework. Guyana is also a member of the Caribbean Financial Action 
Task Force (CFATF) and participated in CFATF's first mutual 
evaluation process in November 2004. Guyana is a party to the 1988 
UN Drug Convention. Guyana became a party to the UN Convention 
against Transnational Organized Crime by accession on September 14, 
¶2004. Guyana has not signed the UN International Convention for the 
Suppression of the Financing of Terrorism. 
 
¶8. The GOG should introduce the draft Anti-Money Laundering Act to 
Parliament early in the legislative session and provide greater 
autonomy for the FIU by making it an independent unit with its own 
budget and office space. Guyana should also provide appropriate 
resources and awareness training to its regulatory, law enforcement 
and prosecutorial personnel. Guyana should criminalize terrorist 
financing and adopt measures that would allow it to block terrorist 
assets. In addition, Guyana should seize opportunities to sensitize 
the public to the harmful impact of money laundering on legitimate 
businesses and the national economy. 
 
END TEXT. 
 
¶9. Requests for further information should be submitted to Nancy 
Long, Economic/Commercial Officer, at LongNE@state.gov. 
 
ROBINSON