Anti Money Laundering Bill passed

The Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) (Amendment) Bill of 2015 was passed in a tranquil environment yesterday in the National Assembly.

Bringing the Bill before the Members of Parliament was Attorney General and Minister of Legal Affairs, Basil Williams.

The crucial Bill went through all its stages and was passed in the absence of the opposition. The opposition had walked out. They were to walk out again when the government presented the Local Government Amendment Bill.

The Attorney General said that Clause two of the anti-money laundering Bill seeks to amend section 2(1) of the Anti-Money Laundering and Countering the Financing of Terrorism Act, Cap. 10:11, so as to redefine the term ‘beneficial ownership’. Clause three of the Bill, he said, seeks to amend section 15(4) (c) of the Act to require a reporting entity to identify and verify the identity of a customer when establishing a business relationship.

He asserted that Clause Four of the Bill seeks to amend section 68A (6) to reduce the period from not later than seven days to not later than five days for the Director of Public Prosecutions to apply for a freezing order. He said that the amendment also provides that an application for a freezing order may be made ex parte to a Judge in Chambers.

The said amendment, Williams noted, also seeks to insert into section 68A a new subsection (6A) to provide that a Judge when granting the freezing order, the standard of proof required shall be on the balance of probabilities.

The Minister of Legal Affairs went on to state that Clause Four also seeks to insert a new subsection (6B) that requires the Director of Public Prosecutions to immediately serve on the reporting entity a copy of the freezing order. Meanwhile, Clause Six of the Bill seeks to amend section 71(1) of the Principal Act to enable the Director of Public Prosecutions to make an ex parte application to the High Court for a freezing order.

Amendments in the form of Clause Seven of the Bill changed the Second Schedule of the Principal Act to make it clear that gold smuggling is a serious offence under the second schedule. The Minister also stated that other crucial changes to the Bill provided for a Schedule to the Act with amendments to section 47A of the Securities Industry Act, Cap. 73:04, Section 7A of the Co-operative Societies Act, Cap. 88:01 and 23A of the Insurance Act, Cap. 91:02.

These modifications, he said, will substitute the sections mentioned above, with the existing provisions and the appropriate factors that must be utilized for evaluation by the respective supervisory authorities.

Williams said that these provisions determine whether any applicant together with any partner, shareholder and director, beneficial owner of a significant or controlling interest or office holder of the applicant, is fit and proper for registration.

Additionally, the Minister of Legal Affairs said that the fit and proper criteria are to be utilized for evaluation by a supervisory authority where there is a change of ownership, management or control of the company.

Apart from the aforementioned changes, Williams said that the Bill was one with which the opposition was very familiar. The Opposition yesterday lobbied for the Government to withdraw its motion to read and vote on the Bill as it believed that such a crucial legislation requires careful scrutiny and the involvement of key stakeholders.

The Attorney General contended, however, that in his view enough consultation had taken place and it was high time that Guyana gets in line with international best practices which seek to protect the nation against money laundering threats.