Guyana is ready to launch its anti-money laundering programme with the Financial Intelligence Unit (FIU) now in place at the Ministry of Finance and the head of the Caribbean Anti-Money Laundering Programme (CALP), Brian Reynolds, is due on Sunday to provide on-site training to support-staff.

A director has been identified for the FIU, whom Stabroek Business understands to be a former banker. Financing has been secured to negotiate a contract with that person.

Rajendra Rampersaud, co-ordinator of the effort to push the unit forward, told Stabroek Business yesterday that a staff of three has been hired, and Reynolds with other officials of the CALP are due for a duration of two weeks to launch the anti-money laundering programme.

This follows a recent US State Department report which said the scale of money laundering in Guyana is thought to be large and is linked to trafficking in drugs, firearms and persons, even though Guyana is neither an important regional financial centre nor an offshore financial centre.

"Political instability, government inefficiency, an internal security crisis, and a lack of resources have significantly impaired Guyana's efforts to bolster its anti-money laundering regime. Investigating and trying money laundering cases is not a priority for law enforcement. The Money Laundering Prevention Act (MLPA) passed in 2000 is not yet fully in force, due to inadequate implementing legislation, difficulties associated with finding suitable personnel to staff the Financial Investigations Unit (FIU) and the Bank of Guyana's lack of capacity to fully execute its mandate," the US State Department said.

Rampersaud concedes that there have been delays in implementing the law but said it was not quite clear who the supervisory authority would be as it had moved from the Office of the President, to the Bank of Guyana, back to the Office of the President and then finally to the Ministry of Finance.

Rampersaud was tasked in 2003 with the job of getting the FIU off the ground. After some delays in renovating office space in the Ministry of Finance, finding staff and securing equipment (provided by the US), the FIU will kick off in a matter of days.

Reynolds and his team, Rampersaud said, would demonstrate to the two technical staff (one from the banking sector and one from law enforcement) what is required in a FIU operation to clamp down on money laundering.

"They will sit down on the job and show the staff what to look for, how to use information on the computer...how to identify a suspicious transaction....point out the trends," Rampersaud said.

He said once the team leaves, the unit would be able to function on its own but might require further assistance if it hits any snags. Additionally, work is underway to pool together the local personnel trained previously in anti-money laundering techniques from law enforcement, the judiciary and elsewhere.

Rampersaud notes that the deputy Director of Public Prosecutions has received training already and so have persons within the Bank of Guyana and the police force.

He could not comment on the US State Department's view that the scale of money laundering in Guyana is large. He notes that while money laundering is part of the informal sector (estimated at 30% of the formal sector) its size is unkown because of the weak law enforcement system.

Continuous training will be provided to investigators and prosecutors to ensure that the anti-money laundering laws are effectively implemented, Rampersaud said.

"I am concerned. Money laundering is a white collar crime which is more dangerous, and the operators are skilful and highly sophisticated. So we will need good systems to be able to track it," Rampersaud said.

The MLPA covers crimes including illicit narcotics trafficking, illicit trafficking of firearms, extortion, corruption, bribery, fraud, counterfeiting, and forgery. The law also requires that incoming or outgoing funds over $10,000 be reported. Licenced financial institutions are required to report suspicious transactions, although banks are left to determine thresholds individually according to banking best practices.

Suspicious activity reports must be kept for seven years. The legislation also includes provisions regarding confidentiality in the reporting process, good faith reporting and penalties for destroying records related to an investigation, asset forfeiture, international co-operation, and extradition for money laundering offences.

Asset forfeiture is provided for under the Money Laun-dering Act.

Rampersaud says the guidelines are now in place to accompany the MLPA.