Guyana -- Sanctions Compliance Regulatory Overview

Guyana, as a member of the Caribbean Financial Action Task Force (CFATF) and the Financial Action Task Force (FATF) global network, is committed to implementing international standards for Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT). This commitment extends to virtual assets and Virtual Asset Service Providers (VASPs).

While Guyana may not have highly specific, dedicated "crypto sanctions lists," its AML/CFT framework mandates compliance with international sanctions regimes, which inherently apply to virtual asset transactions and entities.

Here's a breakdown of cryptocurrency sanctions and restrictions in Guyana:

1. Legal Framework and Compliance Requirements for VASPs

Guyana's primary legal framework for AML/CFT is:

• Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended) (AMLCFTA). This Act, enforced by the Financial Intelligence Unit (FIU) Guyana, serves as the cornerstone for financial institutions and designated non-financial businesses and professions (DNFBPs), which now explicitly include VASPs.

Key Requirements for VASPs under the AMLCFTA:

While the specific amendments explicitly defining and regulating VASPs might be relatively recent, the FATF Recommendations (particularly Recommendation 15, updated in 2019) require countries to apply AML/CFT requirements to virtual assets and VASPs. Guyana, as a CFATF member, is expected to have incorporated these.

1. VASP Definition: VASPs are defined in line with FATF standards, including exchanges, custodians, transfer services, and initial coin offering (ICO) facilitators. They are typically considered "financial institutions" or a new category of "reporting entities" under the amended AMLCFTA.
2. Risk-Based Approach: VASPs must adopt a risk-based approach to AML/CFT, assessing and mitigating risks associated with their customers, products, services, delivery channels, and geographic areas of operation.
3. Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD):
   • Identifying and verifying the identity of customers (including beneficial owners).
   • Understanding the purpose and intended nature of the business relationship.
   • Conducting ongoing due diligence.
   • Applying EDD for high-risk customers, relationships, or transactions (e.g., politically exposed persons, complex transactions, transactions involving high-risk jurisdictions).
4. Sanctions Screening: A critical component of CDD and ongoing monitoring is screening customers, beneficial owners, and transactions against relevant sanctions lists.
5. Transaction Monitoring: Implementing systems to monitor transactions for unusual or suspicious patterns.
6. Reporting Obligations:
   • Suspicious Transaction Reports (STRs)/Suspicious Activity Reports (SARs): Mandatory reporting to the FIU of any suspicious activity, including potential money laundering, terrorist financing, or sanctions evasion attempts.
   • Asset Freezing Reports: Immediate reporting to the FIU and relevant authorities upon identifying a match with a sanctioned individual or entity, and promptly freezing the assets.
7. Record-Keeping: Maintaining all necessary records of customer identification, transactions, and suspicious activity reports for a prescribed period (typically 5-7 years).
8. Internal Controls: Developing and implementing robust internal AML/CFT policies, procedures, and controls, including a designated Compliance Officer, independent audit functions, and ongoing employee training.

2. OFAC/EU/UN Sanctions Compliance Requirements for VASPs

Guyanese VASPs are required to comply with international sanctions, which are implemented domestically.

• UN Sanctions:

  • Compliance Requirement: As a UN member state, Guyana is obligated to implement sanctions resolutions adopted by the UN Security Council. These resolutions impose financial sanctions, travel bans, and arms embargoes on individuals, entities, and countries involved in terrorism, proliferation of weapons of mass destruction, and other threats to international peace and security.
  • Mechanism: The AMLCFTA and related regulations empower Guyanese authorities (e.g., Minister of Finance, FIU) to freeze assets and prohibit transactions with individuals and entities listed by the UN Security Council (e.g., ISIL (Da'esh) & Al-Qaeda Sanctions List, DPRK Sanctions List, Iran Sanctions List, etc.).
  • VASP Obligation: VASPs must screen all customers and transactions against the UNSC Consolidated Sanctions List and immediately freeze any virtual assets belonging to or controlled by sanctioned parties, reporting the freezing action to the FIU.
  • Legal Reference: While specific regulations may vary, the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended) provides the framework for implementing these obligations. The UN Security Council website provides the lists:
    • UN Security Council Sanctions Committees

• OFAC (U.S.) Sanctions:

  • Compliance Requirement: While OFAC sanctions are extraterritorial U.S. laws, any Guyanese VASP that conducts transactions involving U.S. persons (citizens, residents, entities), uses U.S. dollar clearing, or operates with a U.S. nexus (e.g., servers, payment processors) is indirectly but effectively subject to OFAC sanctions. Many global financial institutions require their partners to comply with OFAC.
  • VASP Obligation: To avoid severe penalties, reputational damage, and loss of access to the global financial system, Guyanese VASPs are strongly advised, as a best practice, to screen customers and transactions against OFAC's Specially Designated Nationals (SDN) and Blocked Persons List and other OFAC sanctions lists (e.g., for specific countries like Cuba, Iran, North Korea, Syria, Venezuela, Russia/Ukraine-related).
  • Legal Reference: While no Guyanese law directly mandates OFAC compliance, the practical necessities for international financial interaction make it a de facto requirement.
    • OFAC Sanctions List Search
    • OFAC Sanctions Programs and Country Information

• EU Sanctions:

  • Compliance Requirement: Similar to OFAC, EU sanctions have extraterritorial implications. Any Guyanese VASP dealing with EU persons, entities, or utilizing euro-denominated services will be subject to EU sanctions implicitly.
  • VASP Obligation: VASPs should, as a best practice, screen against the EU Consolidated List of persons, groups, and entities subject to EU financial sanctions.
  • Legal Reference: Like OFAC, no direct Guyanese legal mandate, but essential for international operations.
    • EU Sanctions Map

3. Sanctioned Entity Screening Obligations

VASPs in Guyana must implement robust systems to screen all prospective and existing customers (including beneficial owners), as well as transaction parties, against:

• The UN Security Council Consolidated Sanctions List.
• OFAC's Specially Designated Nationals (SDN) and Blocked Persons List, and other relevant OFAC sanctions lists.
• The EU Consolidated List of persons, groups, and entities subject to EU financial sanctions.
• Any domestic lists of designated terrorists or sanctioned entities published by the Guyanese government or FIU (though these usually align with or are derived from UN lists).

Screening should be conducted:

• Before onboarding new customers.
• On an ongoing basis for existing customers.
• In real-time for transactions, especially high-value or cross-border ones.

4. Geographic Restrictions

While Guyana does not typically issue its own crypto-specific geographic restrictions, Guyanese VASPs must observe international sanctions regimes that impose restrictions on certain jurisdictions. This means:

• Prohibition or extreme caution: VASPs must not facilitate transactions with, or provide services to, individuals or entities in comprehensively sanctioned jurisdictions (e.g., North Korea, Iran, specific regions in Syria, Cuba, Venezuela depending on the sanctions program) as designated by the UN, OFAC, and EU.
• Enhanced Due Diligence (EDD): For transactions or customers linked to other high-risk jurisdictions, VASPs must apply EDD and heightened scrutiny as part of their risk-based approach. The FATF and CFATF regularly issue statements identifying jurisdictions with strategic AML/CFT deficiencies.
• Travel Rule: For virtual asset transfers, VASPs are expected to implement the FATF's "Travel Rule," which requires originating and beneficiary VASP information to be collected and exchanged for transactions above a certain threshold, enhancing the ability to identify cross-border sanctions evasion.

5. Penalties for Violations

Violations of Guyana's AML/CFT Act, including failures related to sanctions compliance, carry significant penalties:

• Financial Penalties: Substantial fines for both institutions and individuals.
• Imprisonment: Individuals found guilty of serious breaches (e.g., facilitating money laundering, terrorist financing, or knowingly evading sanctions) can face significant terms of imprisonment.
• Revocation of Licenses/Registration: VASPs or financial institutions could lose their operating licenses or registrations.
• Reputational Damage: Significant harm to the entity's reputation, making it difficult to operate locally or internationally.
• Loss of Correspondent Banking Relationships: Banks and other financial institutions may cease relationships with non-compliant VASPs, effectively cutting them off from traditional finance.

The specific penalties are detailed within the Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended) and its accompanying regulations.

• Legal Reference: The AMLCFTA itself would detail these penalties. Access to the most recent consolidated version of the Act would be required for specifics. Often available through the Attorney General's Chambers or the Parliament of Guyana website.

6. Country-Specific Sanctions Lists for Crypto

Guyana does not maintain a separate, crypto-specific national sanctions list. Its primary approach is to:

• Implement UN Sanctions: Domestically enforce the UNSC Consolidated Sanctions List and specific thematic sanctions lists.
• Adhere to International Best Practices: Follow the guidance of FATF and CFATF, which emphasizes compliance with globally recognized sanctions lists (UN, OFAC, EU) for all financial activities, including virtual assets.

Therefore, for a VASP operating in Guyana, the relevant lists are primarily the international ones mentioned above. The FIU Guyana may issue guidance or notices regarding specific individuals or entities designated under national legislation for terrorism financing, but these would typically be derived from or align with UN designations.

Important Note: The regulatory landscape for virtual assets is rapidly evolving globally. VASPs operating in Guyana should regularly consult the official websites of the Financial Intelligence Unit (FIU) Guyana and the Bank of Guyana for the latest guidelines, regulations, and advisories. It is highly recommended to seek specific legal counsel in Guyana to ensure full compliance with all applicable laws and regulations.

• Financial Intelligence Unit (FIU) Guyana: http://fiu.gov.gy/
• Bank of Guyana: https://www.bankofguyana.org.gy/
• Caribbean Financial Action Task Force (CFATF): https://www.cfatf-fatf.org/ (for regional AML/CFT standards and mutual evaluation reports on Guyana)