Guyana still a transit country for cocaine – US report
Guyana continues to be a transit country for South American cocaine destined for Europe, the United States, Canada, West Africa, and the Caribbean, the latest US State Department annual report on Narcotics Control Strategy Report has once again said even as it points out that currency exchange houses pose a risk as they are used both for exchange of currency and to transfer funds.
According to the report, which describes the efforts of key countries to attack all aspects of the international drug trade-inclusive of money launderingannually, Guyana’s geographic location makes it attractive for transnational crime groups, including human and drug trafficking. Cocaine originating in Colombia, the report said, is smuggled to Venezuela and onward to Guyana by sea or ear.
“The influence of narcotics trafficking is evident in the country’s criminal justice systems and other sectors. Traffickers are attracted by the country’s poorly monitored ports, remote airstrips, intricate river networks, porous land borders, and weak security sector capacity,” the report said.
Further, it was stated that the country lacks a comprehensive demand reduction strategy that adequately addresses drug rehabilitation.
According to the report, as a matter of policy, the government does not encourage or facilitate the illicit production of distribution of narcotics or psychotropic drugs or other controlled substances or the laundering of proceeds from illegal drug transaction.
It was also stated that there is a culture of using informal networks to move money between Guyana and the diaspora with Guyana having a large cash-chased economy.
“Many criminal use cash couriers or familial networks to move large sums of money between Guyana and the United States. Unregulated currency exchange houses also pose a risk, as they are used both for the exchange of currency and to transfer funds to and from the diaspora. Additionally, casinos are legal in Guyana and pose a risk for money laundering. Guyana has one casino,” the report stated.
Guyana’s Gambling Prevention (Amendment) Act of 2006 states that only three casino licences may be distributed in each of Guyana’s ten regions. One is in the Princess Hotel and another is slated for the Marriott.
Meantime, the report said that primary sources of laundered funds are believed to be narcotics trafficking and corruption but that laundering of proceeds from other illicit activities, such as human trafficking, contraband, illegal natural resource extraction, and tax evasion, is substantial. Common ways used to laundering monies are fictitious agreements of sale for nonexisting precious minerals to support large cash deposits at financial institutions; cross-border transport of small volumes of precious metals, declared as scrap or broken jewellery to avoid scrutiny by the relevant officials and the payment of relevant taxes and duties.
It noted that though Guyana’s Financial Intelligence Unit (FIU) was established in 2003 it was severely understaffed and ineffective but in June 2016 and new director was appointed and its functional capacity has been enhanced.
Guyana has submitted a letter of interest to join the Egmont Group of FIUs in 2011 which is still be considered.
It was recommended that Guyana raise awareness and understanding of Anti Money Laundering laws and implementation procedures, through training and the publication of guidelines, within the judicial system and in agencies with authority to investigate financial crimes.
The report said that the US would welcome increased levels of cooperation with the Government of Guyana to advance mutual interests against the threat of international drug trafficking.