Guyana's Finance Ministry Working To Strengthen Supervision Of Money Transfer Agencies

August 14-08 - Economic activities in Guyana are increasing as the economy continues to expand with new and emerging sectors evolving, adding to the development and the stimulation of economic growth countrywide.
In light of the increasing numbers of Money transfer agencies, Minister of Finance Dr. Ashni Singh tabled the Money Transfer Agencies (Licensing) Bill 2008 in the National Assembly. Minister Singh said that the Bill seeks to establish a legislative and regulatory framework to govern licensing and regulating of money transfer agencies.
In moving that the bill be read a second time in the National Assembly last Thursday, Minister Singh referred the Bill to a Special Select Committee for more detailed consideration.
Money transfer is defined by the Bill as the making of any payment by a person in the scheduled territory or for the credit of a person outside the scheduled territory, or to a person in the scheduled territory by order on behalf of a person outside the scheduled territory, where the scheduled territory is Guyana and where Money transfer agents mean any person carrying on the business of money transfer on behalf of a licensee.
The process of becoming a certificate holder to operating a licensed agency must first apply to the Bank in the prescribed form along with the prescribed fees for a license. A licensee under the Dealers in Foreign Currency (Licensing) Act 1989 or any related party, holding company, subsidiary or other affiliate such a licensee is ineligible for the grant of a licensee under this act.
The Bank, after consultation with the Minister based on the experience, character, soundness and feasibility of the business plan and financial resources of the applicant for a licence may grant or refuse to grant such.
In keeping with the regulations specified in the Bill, where a licence is granted, it should be displayed at a conspicuous place at the business premises and the implicit conversion rates applied and any applicable charges in Guyana dollars be displayed.
With regards to the terms and renewal of a License, it expires on the last day of December of the year in which it was granted and renewals should be made no later than January 15 in every year.
In the interest of the public and financial system, if the holder of the licence upon renewal was found in breach of any provision of the Act, after giving the holder a fair hearing, renewal may not be granted.
For a person to qualify for a license, there are specified requirements which must be met. The person must supply the name and address and must be registered with the Bank, make an application, and pay the prescribed fee. Before the person is considered the bank will make a complete assessment.
The conditions of license and certificate of registration are clearly specified by the Bill. Every License agency and money transfer agent will be subjected to the provisions of the act and the conditions from time to time, be prescribed by regulations or specified in the licence or certificate of registration.
It is compulsory under the act that all licensed agency and agent act in accordance with the Money Laundering (Prevention) Act 2000 and any subsequent legislation replacing or amending that Act.
Suspension and revocation of license or certificate of registration will be applicable where the agency has ceased to carry on the business for a period of not less than six months, has been convicted of felony or of any offence involving fraud, dishonesty or breach of trust and is discharged or an undischarged bankrupt, or where there has been asymmetric information to obtain the license.
To ensure no irregularities, the agency or agent is required to keep and maintain proper records and accounts. From time to time, the Bank will visit the business to examine the records.
Failing to abide with the law, the agency or agent is liable on summary conviction to a fine of $250,000 or six months imprisonment. However, this act does not apply to a licensed financial institution under the Financial Institutions Act 1995.