National Assembly approves Financial Institutions (Amendment) Bill

The National Assembly Monday approved amendments to the Financial Institutions Act which will lay the legal framework for foreign financial institutions to establish offices locally.

The amendments introduce a new section (19A) to the principal act. It mandates foreign financial institutions to seek approval from the Bank of Guyana before establishing a local representative office.

Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh piloted the bill in the National Assembly.

He said while the amendment is simple in structure, it has strategic economic significance.

The senior minister highlighted that with Guyana’s rapid economic growth and increasing international investments, the demand for financial services from major foreign institutions is expanding. These institutions are not only interested in non-financial sectors but also see opportunities in banking and financial services in Guyana.

Some of the largest foreign financial institutions in the world have already expressed interest in establishing offices locally and Guyana welcomes these moves, Dr Singh said.

“It is a first step to the establishment of a full presence. It allows them to acquaint themselves with the Guyanese economic landscape in a more direct manner. It allows them to potentially identify opportunities for doing business in Guyana and explore those opportunities,” Minister Singh added.

He pointed out that the new Section 19A is not unique to Guyana, as similar provisions have existed in other countries’ financial legislation.

He said that despite this newest provision, strict regulatory measures remain in place.

“They still require the approval of the Central Bank before they are able to establish this presence and were they to establish a full presence they would require a full-service licence from the Central Bank,” he noted.

The government has made significant strides to enhance Guyana’s financial structure over the past years, with a number of laws enacted to fortify and regulate the financial framework.

“The effort to build a strong and robust and well-regulated financial sector has not been an effort of yesterday, it has been an effort that has involved work, including work in previous sessions of this house. Previous Parliaments of Guyana work to ensure that we have a robust legal architecture in place,” Minister Singh underscored.