Money Laundering and Financial Crimes

Money Laundering

• Placement refers to the physical disposal of cash proceeds, e.g., purchasing an insurance policy.
• Layering involves separating the proceeds of a crime from its source through complex financial transactions.
• Integration involves placing the laundered proceeds back into the economy, e.g., through the proceeds from a surrendered policy.

Legal Obligations

• Appointment of a Compliance Officer
• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD)
• Internal Controls and Systems
• Training and Maintaining a Register of attendees
• Ongoing Monitoring/Auditing
• Record Keeping
• Submission of Quarterly reports due by the 15th after every Quarter ends

Customer Due Diligence (CDD)

• Identification of customers and verification of their identity
• Identifying beneficial owners who are not the customer and documenting them properly
• Understanding the nature of the economic activity that gave rise to the need for insurance
• Assessing product characteristics to ensure low risk of money laundering
• Having a process to escalate CDD if there are concerns

Standard Due Diligence Procedures

• Completing a Know Your Client Form (Client Verification Form)
• Obtaining Identification Documents
• Obtaining Proof of Address

Identification Procedures

• Photocopying both sides of an ID card/driver’s licence or the bio-data page of a passport
• Ensuring documents are valid and photocopied clearly
• Stamping/verifying documents and certifying them with a legible name

Proof of Address (POA)

• Submitting a POA within a 6-month period with a clearly visible date
• Using an internal letter as alternative proof of address if necessary
• Ensuring POA is stamped/verified by the receiving officer

Power of Attorney (POA)/Beneficiary

• Following the same procedures as ID and Proof of Address
• Ensuring POA gives authority to sign and execute contracts
• Updating POA issued overseas at the Registry before acceptance

Enhanced Due Diligence (EDD)

• Applying to Politically Exposed Persons (PEPs), non-resident customers, money and wire transfer services, and cash-intensive businesses
• Conducting EDD measures if Standard CDD inquiry leads to high-risk determination

Enhanced Due Diligence Process

• Obtaining details of the source and origin of funds or recent financial statements
• Obtaining details of relationships between signatories and beneficial owners of insured property
• Approving transactions with PEPs by senior Management
• Informing the Compliance Officer of new PEPs

Politically Exposed Persons (PEPs)

• A PEP is an individual who holds or has held a prominent public function, including family members or close associates
• PEPs include Heads of State, Senior Politicians, Judicial or Military Officials, and Senior Executives of State-Owned Corporations

Sanctions under AML Act No. 13 of 2009

• Sanctions can be imposed by the Bank of Guyana (BOG)
• Sanctions include administrative penalties, written warnings, and other measures