Implementation of money laundering laws further delayed
Stabroek News
February 5, 2004
Full implementation of an amended anti-money laundering law is now not expected to take place before the end of the first quarter of this year, head of policy unit in the Office of the President, Rajendra Rampersaud says.
A senior analyst; a financial analyst and a typist/confidential secretary are all on notice to assume duties with the Financial Intelligence Unit (FIU) once the agency is fully equipped.
Rampersaud says the office space within the Ministry of Finance is ready and will be equipped by the US government but the arrival of the necessary supplies has been stalled due to the congestion resulting from the recent Christmas holidays.
"We were hoping to start early this year but we were held back, [however], ...three staff are set to come on board," Rampersaud told Stabroek Business on Friday, minutes before Head of USAID, Dr Mike Sarhan, called for the "expeditious implementation" of anti-money laundering laws.
The FIU was to have been operational by the end of September but preparation of the accommodation for this unit within the Ministry of Finance is not yet complete and start-up was put off to early this year.
Dr Mike Sarhan
Another bugbear is that the government cannot afford the services of a director for that unit because none of the three persons short-listed for the position were keen on the salary payable. Rampersaud said a decision will have to be taken on the salary structure or funding for this position before any movement is seen in this regard. The staff hired will be required to do the necessary groundwork and keep the operations of the FIU afloat until a director is employed.
The FIU, a semi autono-mous agency to trail suspected money-laundering transactions, will execute the functions of the Supervisory Authority and was to have been established since 2000 following the passage of the Money Laundering Preven-tion Act (MLPA) in February of that year. Rampersaud was in early 2003 tasked with the responsibility to have the unit fully operationalised and had expected this to be done by the end of September.
The US government is providing the physical support services for the FIU while training will be provided by the Caribbean Anti-Money Laundering Programme (CALP).
The MLPA has to be taken back to parliament to be amended to allow for regulations to accompany the act. Section 12 of the current Act is also to be amended to make it obligatory for financial institutions to keep records for all business transactions and section 13 will be amended to require the FIU to investigate and record all transactions, including those which are complex, unusual and large. The amendment also prescribes penalties ($25000) for any breach of the provisions of the regulations by financial institutions.
The government is formalizing its position on the guidelines to accompany the Anti-Money Laundering Act and these will be forwarded to the banks shortly. The FIU will be the agency relating with the banks and receiving their reports on suspected money laundering transactions.
Money laundering is any procedure to conceal the true origins and ownership of the proceeds of criminal activities.