Guyana -- Licensing Requirements Regulatory Overview

**Criminal prosecution of alleged fraudsters utilizing digital assets.**

**Public advisories and warnings** from the central bank about the risks of cryptocurrency, signaling a cautious and largely unregulated stance.

**Regulator/Enforcing Body:** Guyana Police Force, Special Organised Crime Unit (SOCU)

**Entity Targeted:** Individuals associated with "Coinvest Guyana" and "Accelerated Capital Firm Inc. (ACFI)," particularly Yuri Garcia-Lopez and Ateeka Ishmael, along with others later implicated.

Not a direct regulatory fine, but criminal charges laid.

The duo (Garcia-Lopez and Ishmael) faced over 100 fraud charges related to bilking Guyanese citizens of billions of dollars.

They were granted bail totaling hundreds of millions of Guyanese dollars (e.g., GYD $200 million each for many charges, reduced to GYD $10 million for some).

Assets were frozen and seized by the state as part of the criminal proceedings.

Arrests and initial charges began in **August/September 2020**, with ongoing court proceedings and further charges laid well into **2021 and 2022**.

Recent updates on their court cases and other related individuals continue into **2023 and 2024**.

Yuri Garcia-Lopez and Ateeka Ishmael were arrested, charged with multiple counts of fraud and operating a pyramid scheme.

They have been embroiled in lengthy court battles, with charges being consolidated and preliminary inquiries ongoing.

Other individuals involved in promoting or facilitating the scheme have also faced charges.

The legal proceedings are ongoing, aiming for convictions and restitution for victims.

**Guyana Chronicle (2022 update):** https://guyanachronicle.com/2022/10/21/coinvest-accused-granted-high-court-bail/

**News Room Guyana (2021):** https://newsroom.gy/2021/07/09/socu-files-more-charges-against-accused-pyramid-schemers/

**Regulator Name:** Bank of Guyana (BoG)

**Entity Targeted:** General public, financial institutions, and implicitly, anyone considering operating an unregulated cryptocurrency business in Guyana.

**Violation Type:** While not a "violation" in itself, the BoG warns against the inherent risks and unregulated nature of cryptocurrencies, implying that conducting such activities falls outside the regulated financial system and thus carries significant risks for participants. The advisories highlight that cryptocurrencies are not legal tender, are not regulated by the BoG, and offer no consumer protection.

**Penalty Amount:** N/A (These are advisories, not direct enforcement actions with fines).

**Date:** The BoG has issued several advisories, with significant ones within the last 3 years:

**March 2021:** A prominent advisory reiterating that cryptocurrencies are not legal tender and are unregulated.

**Ongoing:** The BoG's stance has been consistently cautious since then, with similar warnings periodically reiterated through public statements and official channels.

**Outcome:** Increased public awareness of the risks associated with cryptocurrencies in Guyana, a clear statement that such activities are outside the regulated financial sector, and a deterrent for unregulated operations seeking legitimacy. This stance limits the growth of formal crypto businesses until a regulatory framework is established.

**Bank of Guyana Official Advisory (March 2021):** https://bankofguyana.org.gy/bog/news-and-updates/advisory-cryptocurrencies

**Kaieteur News (Reporting on BoG's stance in 2021):** https://www.kaieteurnewsonline.com/2021/03/17/bank-of-guyana-advises-against-cryptocurrency/

**Stabroek News (Reporting on BoG's stance, more recent context):** https://www.stabroeknews.com/2023/12/28/news/guyana/bank-of-guyana-warns-against-cryptocurrency/ (While this particular article is late 2023, it reflects the *ongoing* nature of these warnings, confirming the BoG's consistent stance within the 3-year window).

**Bank of Guyana (BoG) Stance:** The Bank of Guyana has generally adopted a cautious stance, issuing public advisories warning about the risks associated with virtual assets (volatility, scams, lack of consumer protection). While they acknowledge the emergence of crypto, they have not yet issued specific regulations or licensing requirements for VASP activities.

**No Specific Crypto Licenses:** There are no distinct licenses for "crypto exchanges," "crypto custody," or "crypto payment processors" in the same way there are for traditional financial institutions.

**The Money Transfer Agencies Act 2011 (as amended):** This Act governs entities involved in the business of money transmission. If a virtual asset exchange or payment processor facilitates the transfer of funds (even if converted to or from fiat) or manages "electronic money" or "stored value," they *could* be interpreted as falling under this Act.

**Required Licenses:** If caught under this Act, a license from the Bank of Guyana would be required. This would primarily apply to entities facilitating fiat-to-crypto, crypto-to-fiat, or crypto-to-crypto transactions that are considered equivalent to money transmission.

Custody providers that hold virtual assets on behalf of others do not neatly fit into existing traditional financial service licenses unless they also perform functions that could be classified as money transmission or asset management under specific conditions. However, the Bank of Guyana or other financial authorities could assert oversight if these services grow to a systemic level or pose significant risks.

**General Business Registration:** Any entity operating in Guyana, regardless of its specific financial activities, would need to comply with general business registration requirements under the Companies Act and other relevant commercial legislation.

**No Specific VASP Regime:** As there's no dedicated VASP law, there is neither a specific registration nor a specific licensing regime for *crypto-only* activities.

**Potential Licensing under Existing Laws:** If an entity's virtual asset activities are deemed to fall under the **Money Transfer Agencies Act 2011**, then it would be subject to a **licensing regime** administered by the Bank of Guyana, not merely a registration regime.

The Money Transfer Agencies Act specifies minimum capital requirements for licensed entities. These would be determined by the Bank of Guyana based on the nature and scale of the proposed operations. Specific figures are subject to regulatory updates and are outlined in the Act and accompanying regulations.

This is the *most certain* requirement. Even without a specific VASP law, Guyana has robust **Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation**, primarily the **Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended)**, and related regulations.

All financial institutions (and potentially other designated non-financial businesses and professions - DNFBPs, depending on interpretation) are obligated to:

Conduct **Customer Due Diligence (CDD)** and **Know Your Customer (KYC)** procedures.

Implement a risk-based approach to AML/CFT.

Monitor transactions for suspicious activity.

Report Suspicious Transaction Reports (STRs) to the **Financial Intelligence Unit (FIU)** of Guyana.

Have internal AML/CFT policies, procedures, and training.

VASPs are explicitly covered by FATF Recommendation 15, and the FIU would expect any entity dealing with value transfers to comply with AML/CFT obligations.

For any entity requiring a license under the Money Transfer Agencies Act, a local physical presence, established legal entity, and local management are typically required.

**Fit and Proper Persons Test:**

Directors, senior management, and significant shareholders of licensed entities would be subject to "fit and proper" assessments by the Bank of Guyana.

Robust governance structures, internal controls, and risk management frameworks (operational, technological, financial crime) would be expected.

**Initial Inquiry:** Engage with the Bank of Guyana to confirm whether the proposed virtual asset activities require a license under existing legislation.

**Preparation of Application:** Assemble a comprehensive application package, which typically includes:

Business plan detailing operations, technology, and target market.

Detailed AML/CFT compliance program, including KYC procedures and STR reporting mechanisms.

Information on directors, shareholders, and senior management for fit-and-proper assessments.

Information on IT systems, security, and data protection.

Legal opinions confirming compliance with Guyanese law.

**Submission to Bank of Guyana:** Submit the application to the Banking Supervision Department of the Bank of Guyana.

**Review and Due Diligence:** The BoG will conduct a thorough review, including interviews and potentially site visits.

**Approval and Licensing:** Upon satisfactory review and fulfillment of all conditions, the BoG may grant a license.

Amendments to existing financial laws.

Specific regulations issued by the Bank of Guyana or another designated authority.

(Look for press releases or circulars on virtual assets, though a dedicated page might not exist.)

The FIU is responsible for receiving and analyzing STRs and ensuring compliance with AML/CFT obligations.

**Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended):**

Often available on the FIU website or the Ministry of Legal Affairs portal (exact URL may vary due to government site updates, but searching "Guyana AML CFT Act 2009" should yield results).

**Money Transfer Agencies Act 2011:**

Often available on the Bank of Guyana's legal resources page or the Ministry of Finance/Legal Affairs portal (e.g., `https://mof.gov.gy/legislation/` might be a starting point, but direct links can change).

**FATF Recommendations:** While not Guyanese law, these guide Guyana's policy development.

Look for "Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers."

**None (for specific crypto legislation) / Cautionary / Developing:** There is no comprehensive, dedicated regulatory framework for virtual assets or cryptocurrencies.

The primary stance from the financial authorities is one of **caution and warning** to the public about the risks associated with virtual assets, emphasizing that they are not legal tender and operate outside the regulated financial system.

While there are discussions and efforts towards modernizing payment systems and potentially exploring digital currencies, concrete legislation for private cryptocurrencies is absent. Existing laws related to traditional finance and anti-money laundering provide a general backdrop but do not specifically regulate virtual asset service providers (VASPs) or crypto assets themselves in a comprehensive manner.

**Bank of Guyana (BOG):** As the central bank, the BOG is the most vocal and relevant body regarding cryptocurrencies. It is responsible for monetary policy, financial stability, and regulating traditional payment systems and financial institutions. The BOG has repeatedly issued public warnings about the risks of cryptocurrencies.

**Financial Intelligence Unit (FIU):** The FIU is responsible for combating money laundering and terrorist financing. While Guyana has an Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act, its specific application and explicit coverage of virtual asset service providers (VASPs) as per global standards (e.g., FATF recommendations) are still areas of development.

**Bank of Guyana Act (Chapter 86:02):** This Act establishes the Bank of Guyana and defines its powers, including the issuance of legal tender. Cryptocurrencies are explicitly stated by the BOG not to be legal tender under this framework.

*Latest Consolidated Version (often reflects amendments up to a certain point):* Various amendments, but the core act provides the foundation for the BOG's authority.

*No specific URL for the consolidated act is easily available online from an official government source that is consistently updated. Official legal texts are usually accessible via the Attorney General's Chambers or National Assembly.*

**Financial Institutions Act (Chapter 85:01):** This Act governs the licensing and supervision of financial institutions (banks, non-bank financial institutions). Currently, it does not provide a framework for licensing or regulating crypto exchanges or other VASPs.

*An unofficial, older version can sometimes be found via legal databases, but current official version links are scarce online.*

**Not explicitly illegal:** Individuals are not legally prohibited from holding or trading cryptocurrencies.

**Operates in an Unregulated Environment:** The key message from the Bank of Guyana is that crypto trading occurs entirely outside of the regulated financial system. This means there is:

**No consumer protection:** No government-backed insurance or recourse in case of fraud, theft, or exchange failures.

**High risk:** Warnings frequently cite market volatility, potential for scams, and use in illicit activities.

**Not legal tender:** Cryptocurrencies cannot be used to discharge legal obligations or pay taxes in Guyana.

**No Licensed Exchanges:** There are no virtual asset service providers (VASPs) or cryptocurrency exchanges licensed or regulated by the Bank of Guyana or any other Guyanese financial authority.

**Operations are outside the regulatory perimeter:** Any crypto exchange facilitating trading in Guyana would be doing so without local regulatory oversight, licensing, or compliance with Guyanese financial regulations. This exposes users to significant risks.

**Bank of Guyana Official Website:** https://www.bankofguyana.org.gy/ (While a direct link to a specific current warning notice might not be permanent, navigating to their "Press Releases" or "Public Notices" section would be the place to find such advisories. The general stance is consistently communicated through their reports and public engagements.)