The Purpose of AML-CFT in Guyana
DISCLAIMER
This post is not used to cast aspersions on Politicians or Politics within the Caribbean and Guyanese Diaspora. It is merely a tool used to educate the Caribbean People about AML legislations in their respective territories. Ergo, All thin skinned Politicians kindly suave, as the Anguillians would say. Alternately, I will use the paralance of my Trini friends "guh suh".
To my Darling Readers I will try to simplify the purpose of this legislation and its necessity in your respective regions, where possible, without treading on the highly explosive, fragile egos of your Politicians.
In the meager two years of my Compliance related duties within the Insurance Industry, I have heard many persons questioned the purpose of the AML CFT legislation in the Caribbean. The most frequent one is
So, why does it affect me when I'm not American ?
The United States of America also known as Uncle Sam has put forward the argument that Anti Money Laundering and Combating Financial Terrorism is everyone's business. This is due to the various nationalities which were affected in the 9-11 attacks. As a result of our fallen heroes and country men, we are now in allegiance with the US in this fight against terrorism.
The Caribbean, as a Regional Nation, is now faced with the quagmire of accepting the American imposed financial sanctions within their respective territories. These sanctions, which will be explained in detail in a future post, have permeated into the daily lives of the Caribbean people.
It is an interesting and mind boggling concept.
Liza Hanoman has to prove she is indeed Liza Hanoman and not Rub-a-Dub Patra Rose, to Uncle Sam although she belongs to the Golden Arrowhead.
Why does she have to do this?
We are told that the AML and CFT legislations go against the fabric of society. This does not help us understand the structures which are to be implemented by Caribbean territories and what our functions are.
AML means Anti Money Laundering.
This is exactly what it says - it is against Money Laundering.
What is Money Laundering?
Simply defined, it is money acquired by criminal activities which is passed through legally accepted forms of dealing with money within society so as to make it legitimate.
Therefore, the AML legislation contains procedures and regulations which Financial Institutions, from all States which are parties to the legislation, are mandated to follow to prevent "dirty money" mingling with "clean money".
CFT means Combating Financing Terrorism.
It is was enacted by the US after 9-11 attacks to fight against terrorism.
Why are they read together?
Primarily, it is a generalized, crime combating belief, that Money Laundering is used to finance terrorism.
Yet there are questions to be asked:
How useful is the Caribbean Diaspora in the fight against terrorism?
How meaningful is the Caribbean allegiance when most ISIS perpetrators caught are purported to be of Caribbean heritage?
Do the Caribbean Nationals see themselves part of this process against terrorism?
What is expected of a Caribbean National in this war against terrorism?
How useful is the Caribbean Reporting against suspicious terrorist activities?
How will our Governments bolster our Justice System to aid in the combat of local Crime?
How will these intergovernmental initiatives aid Crime Fighting Responsiveness, if at all?
What are the intergovernmental Crime Fighting Structures which are to be put in place to facilitate these legislative framework?
How are Caribbean Financial Institutions to cope with the varied responsibilities now imposed upon them within these intergovernmental legislative framework?
These are just a few to mention...
