Credit Unions pivotal in fight against AML
The Ministry of Social Protection – Department of Co-operatives, in collaboration with the Guyana Co-operative Credit Union League Limited recently held a workshop for local Credit Unions. The workshop addressed the obligations of Credit Unions as reporting entities under the Anti- Money Laundering & Countering the Financing of Terrorism Act.
According to the Act, all reporting entities are required to appoint a compliance officer who will be responsible for ensuring the requirements of the act are met; the entity is also responsible for establishing internal policies and control systems to implement same. It is mandatory that each entity obtain documents of identification from its customers as well as establish and maintain proper records.
According to Section 18 of the AML/CFT Act of 2009 – The reporting entity shall pay special attention to all unusually large business transactions, whether completed or not . If transactions are suspected on reasonable grounds to be connected to the proceeds of criminal activity, money laundering or other infractions, the reporting entity is obligated to take reasonable measures to ascertain the purpose of the transaction, the origin and ultimate destination of the funds and the identity and address of any ultimate beneficiary.
During the workshop, demonstrations were given on how to properly fill relevant forms, such as: Threshold transactions, suspicious transactions and terrorist property.
Participants were given an explanation of the importance of compliance with AML/CFT regulations and an overview of the role of the Financial Intelligence Unit.