FATF Status

Guyana is no longer on FATF’s list of aml deficient countries.

FATF Statement re AML Strategic Deficiencies:   21 October 2016

The FATF welcomes Guyana’s significant progress in improving its AML/CFT regime and notes that Guyana has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in October 2014. Guyana is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Guyana will work with CFATF as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

CFATF Statement re AML Strategic Deficiencies: 30 May 2014

As a result of not meeting the agreed timelines in its Action Plan, the CFATF recognises Guyana as a jurisdiction with significant AML/CFT deficiencies, which has failed to make significant progress in addressing those deficiencies and the CFATF considers Guyana to be a risk to the international financial system. Members are therefore called upon to implement further counter measures to protect their financial systems from the ongoing money laundering and terrorist financing risks emanating from Guyana. Also, the CFATF has referred Guyana to the FATF.

Countermeasures could entail, among others, the requirement of enhanced due diligence measures; introducing enhanced reporting mechanisms or systematic reporting of financial transactions; refusing the establishment of subsidiaries or branches or representative offices in the country concerned, or otherwise taking into account the fact that the relevant financial institution is from a country that does not have adequate AML/CFT systems and limiting the business relationships or financial transactions with the identified country or persons in that country.

Background Information

In November 2011 the CFATF 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 CFATF 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.

The CFATF issued a public statement in May 2013 recommending that Guyana took steps to ensure that it addressed its AML/CFT deficiencies. Additionally, in November 2013 CFATF issued a further public statement 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. Guyana has failed to pass the relevant legislation necessary for it to significantly improve its AML/CFT regime and therefore has not substantially addressed the outstanding deficiencies from its mutual evaluation report. The CFATF urges Guyana to urgently, immediately and meaningfully address its AML/CFT deficiencies, in particular by: 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. Please refer to the 6th follow-up report on Guyana, available at www.cfatf-gafic-org for greater details.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Guyana was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Guyana was deemed Compliant for 1 and Largely Compliant for 5 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations.

US Department of State Money Laundering assessment (INCSR)

Guyana is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview

Guyana’s large, informal economy facilitates criminal activities having a close nexus with narcotics and human trafficking, illegal logging, and the illicit gold trade.  Loosely regulated currency exchange houses, casinos, and dealers in precious metals and stones pose risks to

Guyana’s anti-money laundering/combating the financing of terrorism (AML/CFT) regime. 

Other sectoral vulnerabilities include the banking industry and unregulated attorneys, accountants, real estate agents, used car dealers, and charities. 

While Guyana has laws to tackle money laundering, the government devotes minimal resources to enforcing existing laws.  A lack of technical expertise constrains the government’s ability to successfully investigate and prosecute financial crimes. 

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           40

World Governance Indicator – Control of Corruption             45

Guyana is located on South America’s North Atlantic coast, bordering Venezuela, Suriname, and Brazil, and is the only English-speaking country on the continent. Guyana became an oil producing nation in 2019 and, with a population of roughly 800,000, is poised to dramatically increase its per capita wealth. While GDP per capita is skyrocketing thanks to oil production and 2022 GDP growth of 62 percent, but many still live under the poverty line. Guyana’s economy is projected to grow by 37 percent in 2023 alongside a 6.6 percent inflation rate, making it one of the fastest growing economies in the world.

Guyana’s offshore oil development is poised to deliver over 500,000 barrels of oil per day (bpd) by the end of 2023 with expectations that the country will produce 1.2 million bpd by 2027.

A consortium with a U.S. company as a majority shareholder is developing Guyana’s over 11 billion barrels of offshore oil and gas deposits. Industry experts expect Guyana’s total recoverable oil deposits to increase as exploration activities expand to other offshore blocks, which remain unexplored and for which an auction was expected in 2023. Guyana’s Natural Resource Fund (NRF) is anticipated to exceed $2 billion by end of 2023. Guyana is quickly transforming into a regional destination for international investment as it seeks to spend its oil revenues on transformational change and improved services for its people. Guyana’s foreign direct investments (FDI) have seen a 47% or $629 million growth in the first six months of 2022 to nearly $2 billion. Guyana welcomes U.S. investors.

Attempts to diversify the economy away from oil and gas have been slow to produce results. Local content requirements for the oil and gas sector were legislated in 2022, and oil and gas accounts for more than 50 percent of the total GDP. Guyana’s export composition remains largely dependent on natural resources. To diversify the economy away from oil and gas, the GoG is offering incentives for investment in the agriculture, business support services, health, information technology manufacturing and energy sectors, especially in outlying regions, through the Guyana Office for Investment, or GOINVEST. At the same time, processes including the government tender process are slow and often opaque, with some tenders expiring and being re-issued after a year passes without decision. Some major tenders have seen increased transparency, with international experts brought in to assess bidder qualifications.

Guyana has taken steps to address climate change through the adoption of its Low Carbon Development Strategy (LCDS), which seeks to create financial incentives for maintaining the country’s intact forests covering 84 percent of the landmass, watersheds, and unique biodiversity. Guyana sold 30 percent of its carbon credits in 2022 and remains open to the sale of the remaining carbon credits as it utilizes the funds to preserve its forests.

The GoG’s 2023 priorities include significant infrastructure investments, energy developments, education, bolstering healthcare services, diversifying, and expanding agriculture sector, and improving the business climate. Many businesses report their key challenges to doing business in Guyana include increasing crime, the high cost of electricity, unclear interpretation of the law or lengthy delays at customs, contentious tax issues, and access to land. However, the GoG has taken steps to address the challenges including the Gas to Energy project to reduce the cost of electricity and is developing a single window for processing housing and business permits.

The majority of Guyana’s population resides on the coastal area, including much of the population residing under sea level in locations at high risk for flooding. In 2022, Guyana continues to feel the pain from the ongoing Russian war against Ukraine which resulted in higher food and energy prices.

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Country Links

Bank of Guyana